Minnesota's 20-day state government shutdown appeared to take a big bite out of the state's revenue collections in July.
The state took in $954.1 million during the month, off $16.2 million from expectations, according to a state financial report released Wednesday. Sales tax collections took the biggest hit, falling more than 19 percent below estimates.
Minnesota Management and Budget Commissioner Jim Schowalter said the state government shutdown "almost certainly" affected state receipts during the month, as the state lottery blinked off and auditors were out of work.
State economists say the combined July and August receipts will provide a more accurate measure of how revenues are tracking compared to expectations.
A significant decline in revenue could be a big problem for legislators and the governor, who finally patched together a state budget less than a month ago, ending the shutdown.
If revenue collections lag, legislators could be forced back into special session to balance the budget, reigniting what became a paralyzing feud between those who want to balance the budget with tax hikes versus those who want to impose deeper cuts.
DFL Gov. Mark Dayton said he is monitoring the economy closely, especially as the national recovery falters and the stock market has tanked in recent days. He said Minnesota's employment numbers remains strong, but the national economic picture is concerning.
"Obviously it's a very, very serious situation," Dayton said at a news conference Wednesday.
