Paper trail: January 2010 economic update from MMB

Minnesota’s general fund received $2.735 billion in revenue in the last two months of 2009, which was $1.5 million less than forecast. The Minnesota Department of Management and Budget [MMB] released the numbers this afternoon in its January 2010 economic update.

Sales tax collections were down by $25 million. However, increases in individual income, corporate and other taxes mostly offset the decline in the sales tax. The sales tax statistics in the report only reflect the November portion of the Christmas shopping season, according to MMB. Another variable in the numbers was the timing of estimated taxes received and tax refunds paid by the state.

Unlike a year ago, the report notes that real GDP is growing, credit is starting to flow and consumer spending is increasing. The report, however, strikes a cautionary tone about the future.

“[W]hile this year’s economic outlook is far less frightening than 2009’s, economic conditions are not expected to return to normal in 2010,” the report states.

The report also provides data from the U.S. Department of Labor’s Quarterly Census of Employment and Wages that shows how the recession has affected different parts of the state.

Job losses were most severe in the northeastern and central parts of the state and the Twin Cities. See the graph on page 3 of the report for more regional information.