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State revenue outpaced projections for February and March, resulting in $145 million more money than expected.

Residents paid $1.2 billion in income tax, about $57 million more than projected. Sales tax revenue was up as well, coming in at $706 million, $22 million more than expected. The highly volatile corporate income taxes was up, too, Corporations paid 18 percent more than estimated, totaling $307 million.

Minnesota Management and Budget officials estimate that consumer wages were up 9 percent in the last quarter of 2012 from the same period the year before. Budget officials believe some of that growth was due to high earners trying to get wages, bonuses and other incentives before higher tax rates kicked in this year.

Economists say the economy is stronger than expected, but the impacts of automatic cuts in Washington, sluggish employment growth and concerns about consumer spending are holding back more robust growth.