January Tax Collections Top Projections by $85M

ST. PAUL, Minn. (AP) — Minnesota tax collections for January ran $85 million ahead of projections, which is likely to feed expectations of an enlarged budget surplus in a report coming later this month.

The extra collections documented Tuesday were 4.3 percent more than state finance officials had expected.

The monthly snapshot has its limit because it looks only at state revenue and doesn't factor in spending patterns.

The last comprehensive budget report projected a $1 billion surplus. That has triggered calls for increased spending, tax cuts or some combination.

The next full economic report will be released on Feb. 27. Gov. Mark Dayton and legislators will use benchmarks established in that report to determine the size of the state budget for the next two years and any tax cuts.