Minnesotans will get an in-depth update on the state's economic picture next month, as recent tax collections have surpassed predictions.
Minnesota Management and Budget announced Friday that state officials will present the latest budget and economic forecast Dec. 7. The update will help shape spending proposals from state lawmakers and Gov. Tim Walz's administration in the next legislative session, which begins Jan. 31.
Walz and legislators passed a two-year state budget this summer, but they could agree to supplemental spending next year.
Monthly revenue updates show state government has collected more in taxes than previously predicted and is poised to enter 2022 with a significant budget surplus. The latest review in October showed revenue from sales and corporate franchise taxes that month was tens of millions more than anticipated, while individual income taxes were slightly less than expected.
Minnesota has collected $744 million more than projected so far in the 2022 fiscal year, which started July 1. That's 10.3% more than what officials forecast in February.
State leaders have also received billions of dollars in federal COVID-19 pandemic relief during the past year.
The mix of federal aid and strong tax collections has led Minnesota to a very different financial outcome than economists predicted when COVID-19 hit in the spring of 2020, when officials warned of a looming budget deficit.
The state economist and budget officials typically provide the predictions twice a year, with the other review coming in February.
Jessie Van Berkel, 651-925-5044
