Tax revenue way over forecast

By: Max Nesterak - June 10, 2021 11:41 am

Photo illustration by Getty Images

The state of Minnesota collected $3.3 billion in May, a stunning $1.5 billion or 119% more than forecast, according to Minnesota Management and Budget.

Some of the discrepancy comes from the late tax filing season this year, but it’s also a sign of the state’s red hot economy coming out of the pandemic.

Gov. Tim Walz is set to talk about the bullish new fiscal situation at a Thursday morning news conference.

Legislators entered the year with a deficit, which in a matter of months has become a ballooning surplus.

Walz and the divided Legislature still need to pass a two-year budget by July 1 or the government will shut down. The new numbers should make compromise easier.

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Max Nesterak

Max Nesterak is the deputy editor of the Reformer and reports on labor and housing. Previously, he was an associate producer for Minnesota Public Radio after a stint at NPR. He also co-founded the Behavioral Scientist and was a Fulbright Scholar to Berlin, Germany.