Fiscal Analysis Department

Minnesota House of Representatives

To: Representative Kurt Zellers Representative Matt Dean Representative Paul Thissen Representative Mary Liz Holberg Representative Lyn Carlson Representative Greg Davids Representative Ann Lenczewski From: Bill Marx Date: June 11, 2012 Subject: State Revenue State general fund revenues were $32.3 million above forecast amounts for May 2012. The latest information from the Minnesota Management and Budget Department compares actual receipts for May to receipts forecasted in the February 2012 general fund forecast. In addition to this positive $32.3 million, revenues were $116.0 million above the forecasted amounts for February, March and April of 2012. In the four months since the February forecast, revenues received are now $148.3 million above the forecasted amount. The net $32.3 million positive variance for May is the sum of the variances in several areas. The chart below reflects the forecasted amount, actual revenue and the difference (dollars are in millions). Forecast Actual Difference Individual income tax $600.6 $544.5 -$56.1 Sales tax 343.0 380.3 37.3 Corporate income tax 23,9 42.9 19.0 Other revenues 301.0 333.1 32.1 Total $1,268.5 $1,300.8 $32.3 Actual individual income tax refunds and final payments are not reported until after the processing of the 2011 returns is complete in June. The Department suggests that it appears likely that 2011 final income tax liability will not be negative. Of the variance in other revenues, $11 million is due is increased revenue in cigarette and tobacco products taxes. If you have questions or need more information, please contact me at 651-296-7176.