Minn. tax collections sink $150M under estimates

Minnesota finished its last budget year with $150 million fewer tax dollars than officials expected, mostly because of a poor performing income tax.

The revenue shortfall is detailed in a quarterly economic update released Friday by the Minnesota Management and Budget agency.

And it could get worse. The report said the figures could change as people file amended tax returns to account for money they lost in Ponzi schemes. A final accounting is expected in October.

The report's authors say that they expect the economy to show growth in the fall, but they are counting on job losses to stretch into next spring.

All told, Minnesota took in nearly $15 billion in taxes in fiscal year 2009, which ended June 30.

(Copyright 2009 by The Associated Press. All Rights Reserved.)