Minnesota had unexpected revenue bump through June

(AP) - Despite bad economic news, Minnesota's tax collectors took in an extra $389 million before closing the books on the latest fiscal year.

The state Department of Finance says revenues for the fiscal year that ended last month were 2.5 percent above projections.

The increase came mainly from a bumper crop of personal income tax payments and taxes on corporate profits.

Still, the agency's economic update warns that current economic problems have yet to show up in the state's accounts. Projections for economic growth have been scaled back because of high oil prices, depressed housing markets and problems in the financial markets expected to extend into 2009. The quarterly reports give only half the state's budget picture since spending isn't included.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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