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: September 11, 2012 Subject: State Revenue State general fund revenues were $41.4 million above forecast amounts for August 2012. The latest information from the Minnesota Management and Budget Department compares actual receipts for August to receipts forecasted in the February 2012 general fund forecast. Revenues for July 2012 were $10.7 million below the forecasted amount. The variance for fiscal year 2013 is now a net positive $30.7 million. Revenues for fiscal year 2012 (ending on June 30, 2012) were $336.4 million above the forecasted amount so the revenue variance from forecast since the February 2012 forecast is $367.1 million (+336.4 – 10.7 + 41.4). The net $41.4 million positive variance for August 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 $605.0 $623.8 $18.8 Sales tax 413.3 429.7 16.4 Corporate income tax 32.4 35.7 3.3 Other revenues 125.7 128.6 2.9 Total $1,176.4 $1,217.8 $41.4 MMB cautions that monthly revenue variances should be interpreted cautiously. Swings in revenue may occur from month to month due to timing of receipt and processing of revenues. If you have questions or need more information, please contact me at 651-296-7176.