Minn. revenues exceed projections by $463M
Published 1:00 pm Thursday, July 11, 2013
ST. PAUL — Minnesota’s tax revenues for the budget year that ended June 30 came in $463 million ahead of forecast, state officials said Wednesday, and that means more money will be on its way to schools.
Seventy percent of the extra revenue came from higher-than-expected individual income tax payments, Minnesota Management and Budget said in its quarterly revenue update.
Some of that money was attributed to stronger-than-expected economic growth, but the department said it believes much of it came from wealthy taxpayers shifting income from future years into 2012 to beat anticipated hikes in income and capital gains taxes, yielding a one-time gain.
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Still, Gov. Mark Dayton said the report was “great news” for education because a bill he signed last session requires the state to use any budget surplus to accelerate repayment of $874 million owed to local school districts. Previous legislatures effectively borrowed from school districts by shifting payments into later fiscal years to patch holes in the state budget.
“Our state’s strong economic growth has enabled us to work our way out of previous budget deficits and repay most of what we owed our school districts,” Dayton said in a statement. “More work remains, but we have made important progress.”