State budget officials say tax collections fell short of projectionsby Tom Scheck, Minnesota Public Radio
St. Paul, Minn. — The state budget department says tax collections fell short of projections in the last quarter.
Minnesota Management and Budget reported that tax receipts were $52 million behind projections in the third quarter. The agency said income tax collections were the main problem, falling some $93 million behind projections, and sales tax collections were $20 million below forecast.
The bright spots were corporate taxes, which were $52 million above expectations and motor vehicle taxes which were up $4 million, as well as other state taxes that were up about $4 million overall.
That increase can be tied to the federal "Cash for Clunkers" plan that gave rebates to people who traded in high emission vehicles for new cars. "Cash for Clunkers" is no longer available.
On the jobs front, forecasters expect the state's unemployment rate to continue to climb until next spring.
An official with Minnesota Management and Budget said the next budget forecast is tentatively scheduled for Dec. 2.