Minn. general fund revenues $46M below forecastby Tom Scheck, Minnesota Public Radio
St. Paul, Minn. — The latest economic update provided by Minnesota Management and Budget says lower than expected individual income tax receipts and sales tax receipts mean that the state collected $46 million less than expected in February and March.
The update also said forecasters don't expect a quick turnaround for the nation's economy, but found that the federal stimulus has given them reason to hope that steep slide will come to a close. But that doesn't mean the economy will bounce back to 2007 levels anytime soon.
The update said the economy isn't expected to return to pre-recession levels until 2011, and the job market won't return to 2007 levels until 2013.
The new figures won't force Gov. Pawlenty and state lawmakers to redraft their budget plans. They are working off a March report that forecasts a $4.6 billion budget deficit over the next two years.