New Report Points to Potential For Even Larger MN Budget Surplus
St. Paul, Mn (KROC-AM News) - A new Revenue and Economic Update for the State of Minnesota points to continued growth in a projected surplus that has already been estimated at more than $17.4 billion.
The Minnesota Office of Management and Budget is reporting that net general fund revenues for November and December totaled just over $5.1 billion. That is $217 million, or 4.4% above the predicted level from the new state revenue forecast issued last November.
Individual income tax payments over the final two months of last year came in slightly under the forecast at $2.3 billion. That was $24 million, or about 1% lower than expected. The state's sales tax generated just slightly more than anticipated at around $1.2 billion, while corporate tax payments came in more than 50% above the forecast at $639 million and other revenues exceeded the forecast by about $19 million.
Looking ahead, the economic consultant used by the state for its revenue forecasting is indicating the outlook for the US economy has improved since the state revenue forecast was made public last fall. The report predicts the nation's annual Gross Domestic Product for last year will rise by 2%, while the GDP for 2023 is predicted to rise by half of a percentage point. The previous forecast projected a very slight contraction in the GDP over the next 12 months.
The consultant is still forecasting a mild recession in the first half of this year with a return to economic growth after two-quarters of modest contraction.