By RICARDO LOPEZ
Minnesota budget officials on Tuesday reported that tax collections for the 2016 fiscal year were higher than expected, totaling nearly $21 billion.
That's $230 million more than had been projected in February, when officials released their last state budget and economic forecast.
The better-than-expected revenue collection is due mostly to higher corporate tax receipts, which totaled $1.47 billion during fiscal year 2016.
In all, tax collections for fiscal year 2016 are nearly 3 percent higher than the previous year as the economy has improved.
State budget officials said U.S. economic growth was weak in late 2015 and early 2016. The Bureau of Economic Analysis estimates that real GDP rose at a modest 1.1 percent annual rate during the first quarter of the year, down from only 1.4 percent growth in the prior quarter, and the worst six-month performance in nearly three years. The weakness was attributable to struggling manufacturing and foreign trade sectors, a strong U.S. dollar, weak global growth and collapsing energy prices. But economic growth in the second quarter appears to have rebounded. Consumer spending in April rose at its strongest pace in almost seven years.
"Minnesota's financial health continues to exceed expectations," state Management and Budget Commissioner Myron Frans said. "Today's economic update confirms Minnesota's trend of strong financial performance, reaffirming our work toward a bright future for Minnesota."
