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Monthly volatility should be interpreted cautiously.
(Published Aug 22, 2012)
According to a report issued by the Minnesota Department of Management and Budget (MMB), the net general fund revenues collected by the state in July totaled $921.3 million, which was $10.7 million (1.2 percent) less than forecast for that period.
The reduction in July revenues relative to projections was led by a reduction in individual income tax receipts of $16.3 million while gross sales tax receipts fell $6.5 million short of projections. Corporate income tax collections, which can be very difficult to project, actually rose by $17.6 million, or nearly 39 percent.
The report warns that monthly results are preliminary and subject to revision. Wide deviations in monthly revenue collections compared to the state budget forecast may be caused by variations in the rate at which receipts are received and processed and differences in the rate at which refunds are issued. Looking at state revenue collections over a longer time frame, MMB released an economic update report in early July that indicated that state revenues for the 2012 fiscal year that ended on June 30, 2012, actually exceeded projections by $336 million, or 2.1 percent.
A more complete report covering the July, August, and September receipts will be issued as part of MMB’s October Economic Update. The next state budget forecast will be release in late November or early December.
Contact Gary Carlson
(651) 281-1255 or (800) 925-1122