The Office of Minnesota Management & Budget released their October 2012 Economic Update this week and the news could not be more optimistic for our state’s economy. Throughout the first quarter of Fiscal Year 2013, revenues came in $145 million above projections from what was forecasted in February. That equals a 4% increase in what the economic experts in St. Paul were predicting. This amount is in addition to $299 million in additional revenues that were predicted for Fiscal Year 2012 . When you add it all up, revenues for the current two-year biennium are currently $444 million above forecast.
This positive news only reinforces what I stated in July when the last economic update was released. Back then I reported that such additional revenues prove that the budgetary decisions made by me and my colleagues in the legislative have had a positive impact on Minnesota’s economy. Factors leading to the excess revenues include increases in the collection of income taxes, sales taxes and corporate income taxes. In addition, consumer confidence has risen markedly in Minnesota due to strong home sales, increased automobile sales and additional homeowners re-financing their mortgages.
When you add it all up, I believe it is a matter of simple economics that I have been promoting since the day I took the oath of office in the Minnesota Senate. By holding the line on tax increases and being a sound fiscal steward of how state taxpayer dollars are spent, Minnesotans are continuing to realize the benefits of having more money in their pocketbooks at the end of the day. If we continue to shepherd these ideas through the legislative process during the upcoming 2013 session, I firmly believe the economies of West Central Minnesota and the rest of the state will continue to flourish.