Minnesota Ends Fiscal Year $850M Over Revenue Forecast

St. Paul, MN (KROC-AM News) - A new report shows the State of Minnesota ended its fiscal year with nearly $850 million more than expected in its general fund.

The Minnesota Office of Management and Budget says the total was just over $31.9 billion, which was 2.7% above the level projected by the most recent state revenue forecast issued in February. In the final quarter of the fiscal year, which ended in June, Minnesota's general fund revenues exceeded the forecast by more than $600 million, or 6.8%.

Get our free mobile app

For the entire fiscal year, the report shows individual income tax payments totaled about $16.6 billion. That was just over $1 billion, or 6.8% higher than forecast.

The higher-than-projected income tax collections overcame lower-than-expected revenues from the sales tax, corporate tax, and miscellaneous revenue sources. Sales tax collections, which are the state’s second-largest revenue source, were slightly less than forecast at about $7.5 billion.

Corporate tax payments were about 3.2% below the forecast at $3.2 billion, while miscellaneous revenues from fees and other sources came in at just under $4.6 billion—1.2% under projection.

The report notes that all of the fiscal year 2025 results are still considered preliminary, and a final report will be issued in October.

Looking ahead, the economic consultant used by the state says the outlook for the national economy through 2029 has deteriorated over the past five months. It states the current forecast does not include a recession, but “rather is defined by low GDP growth—below 2% annually—and rising unemployment into 2027.”