State Revenues Increase
Minnesota Management and Budget (MMB) issued an Economic Update today. This Update summarized revenue collections for November and December of 2015 and provided for a high level look at the U.S. economy.
There was continued good news in MMB’s numbers. Minnesota collected an additional $43 million in tax revenue for the months of November and December of 2015. Collections from the individual income tax, corporate tax, and other revenues were above estimates while sales tax receipts were lower.
MMB also highlighted the recent Federal Reserve action to raise short-term interest rates. This action by the Federal Reserve, lifting its benchmark rate by a quarter of a percentage point, reflects ongoing confidence in the strength of the U.S. economy. The labor market has strengthened while consumer spending and business investment have remained solid.