Minnesota’s strengthening economy is pulling in extra money even before a $2.1 billion tax increase kicks in.
Stronger-than-expected tax collections have left the state with an extra $300 million that could even grow before the fiscal period closes June 30. That is allowing the state to fully replenish its reserves and pay down money it still owes local school districts.
Minnesota Management and Budget Commissioner Jim Schowalter said Monday that many of the key economic indicators are good, and that the state is on its best financial footing in years. In February and March, tax collections beat projections in all four major categories.
“We are in good financial shape,” Schowalter said.