July 12, 2022 Minnesota ended its fiscal year in June with state revenue far outpacing expectations. A quarterly report from the state budget agency shows tax collections were about $3 billion ahead of projections for the year. That’s about 11 percent more than forecasters predicted would come in. But much of that is tied to a business tax change that officials expect will result in higher credits and refunds later. Meanwhile, there could be trouble on the horizon. The Minnesota Management and Budget update says the U.S. economy is clearly slowing due to war abroad, higher product costs and rising interest rates. Significantly lower growth projections could drive down tax collections. The state has considerable money from a projected surplus that hasn’t been spent and a hefty reserve fund. Those would help absorb a sudden downturn. Subscribe to our Minnesota Today podcast to get up-to-date news twice daily. | 