Minnesota’s general fund receipts were more than two percent below expectations for the first quarter of the 2017 fiscal year, Minnesota Management and Budget announced Monday.
In a press release the MMB announced that net revenues totaled $4.457 billion from July through September, 2.1 percent below expectations. The difference totals approximately $97 million.
The majority of the gap comes from a combination of 2016 and 2015 income tax numbers. 2016 income tax gross revenue was $29 million under the expected amount, while an $21 million more than expected was paid out in refunds on 2015 income tax filings. Additionally, net sales tax receipts were $28 million lower than expected, and gross corporate tax receipts were $18 million below forecasts.
On Tuesday MMB put out two statements. The first announced that Minnesota is scheduled to sell $92.15 million of 911 revenue refunding bonds, starting October 18. The second announced the state will sell $11.8 million of state general fund appropriation bonds, starting October 19. Combined, these two make up about $7 million more than the revenue shortfall for the first quarter of fiscal year 2017. Fitch Ratings gave the 911 revenue refunding bonds a AA rating, while the general fund appropriation bonds received a AA+ rating.
MMB’s report emphasized that there is a degree of uncertainty present in the United States economy currently. The three main variables at play seem to be the outcome of the 2016 presidential election, policy choices by the Federal Reserve, and the possibility of the Organization of Petroleum Exporting Countries reducing their oil production levels.