Minnesota Management and Budget announced today that the 2012 revenues exceed the February forecast by $336 million.
The department's July Economic Update finds that higher-than-predicted income tax receipts are the main driver for the good news.
The higher tax collections are good news for Gov. Dayton and state lawmakers who have to craft a two year budget in January. There is, however, some cause for concern. The update says job growth slowed in the first half of 2012 and "GDP growth is now expected to fall below forecast made earlier this year." That could mean there is an increase in state services like subsidized health insurance.
The update only gauges revenue collections and doesn't account for spending. Minnesota officials won't have a better understanding of the state's budget situation until the next forecast is released in November.
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