Steady news in Minnesota's budget numbers
- Blog Post by:
- July 10, 2012 - 4:58 PM
A new portrait of state budget numbers gives some good news after years of gloom.
The state closed out the 2012 fiscal year with $336 million, or 2.1 percent, more revenue than had been forecast in February. Almost a third of the increase came from higher than expected income tax collections.
The steady picture does not mean the state's outlook is rosy, Minnesota Management and Budget Commissioner Jim Schowalter said.
“This is good news, but it doesn’t mean that the state’s financial problems have gone away. A lot of the additional revenue came from one-time sources,” he said in a statement.
The steady economic portrait comes after several difficult budget years, which included cuts, borrowing and gimmicks to fill in budget gaps.
The state's economic forecasters IHS-Global Insight "has turned slightly less optimistic since earlier in the year" about the nation's economic growth through 2013, according to the forecast.
But the forecast also highlights that Minnesota is doing better than the nation.
"Minnesota ranked 15th among state in GDP growth between 2007 and 2011," the forecast said.
The state's GDP grew faster, in recent years, than the nation's and manufacturing grew 13 percent in recent years. The national manufacturing output still lags below the output of 2007.
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