Report shows first monthly decline in state revenue collections since the February forecast was released.
(Published Aug 19, 2013)
On Aug. 12, Minnesota Management and Budget (MMB) released a monthly report summarizing state revenue collections for the month of July. These reports are being closely monitored by legislators and state officials for indications of trends in the state’s economic recovery.
According to the report, net general fund revenues totaled $936 million in July, which was $20.7 million, or 2.2 percent, less than the February forecast as updated to reflect revenue changes during the 2013 legislative session. This was the first monthly report since the February 2013 state budget forecast was released where actual state general fund revenue collections did not meet or exceed forecast levels.
One bright spot in the report was that gross sales tax receipts were $22 million, or 11.9 percent, above projections. Individual income tax receipts were down by $13 million, or 2.1 percent, while corporate income tax collections were down by $12.3 million, or 20.3 percent. The broad category of “Other Revenue” was down by $17.7 million, or 19.5 percent.
The MMB says that all results are preliminary and subject to revision and also that monthly revenue variances should be interpreted with great caution. Variances may be caused by swings in the rate at which receipts are received and processed and differences in the rate at which refunds are issued. Other revenues often include unallocated accounts receivables, which will be added to receipts for the appropriate tax when identified.
A more complete report covering the first quarter of fiscal year 2014—which includes receipts for the months of July, August, and September—will be issued as part of MMB’s October Revenue and Economic Update. That report will also update fiscal 2013 revenues to reflect the official closing of the 2013 fiscal year, which ended on June 30, 2013.
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