State Reports Tax Revenues Higher Than Projection
Minnesota’s tax revenues for the budget year that ended June 30 came in $463 million ahead of forecast, according to an AP report. State officials say that means more money will be paid towards the school shift.
The Associated Press reports that Minnesota Management and Budget believes most of the extra revenue came from higher-than-expected individual income tax payments.
Some of that is being attributed to stronger-than-expected economic growth, but the department also notes that much of it came from wealthy taxpayers shifting income from future years into 2012 to beat higher taxes, yielding a one-time gain that will subsequently be offset in future years.
Still, Gov. Mark Dayton says the quarterly update is good news for education because a bill he signed last session requires the state to use surplus revenue to accelerate repayments of money that previous legislatures borrowed from school districts.