The state's revenue has outpaced predictions and was up $282 million — nearly 6 percent — above what was expected for July through September.
"Clearly we're seeing a growing economy both nationally and in Minnesota," state Management and Budget Commissioner Myron Frans said. "And the great thing about the economy growing faster than we forecasted … we're seeing this going to the bottom line, instead of shoring up where we see a hole."
The state's income from corporate tax receipts was particularly high in the past quarter. It was $88 million more than the amount state officials forecast in February. That was a result of corporations paying more in taxes and lower refunds, according to a revenue report the state published in the past week.
In total, the tax receipts and other revenue put more than $5 billion into the state's general fund, which pays for major state programs. Frans said the high revenue puts the next governor's administration in a good position.
House Speaker Kurt Daudt, R-Crown, said he expects the November budget forecast to show a surplus of more than $1 billion.
"When you give money back to Minnesotans to use, you see economic growth. And that's what we predicted, and that's what's happened," Daudt said.
Jessie Van Berkel