The general fund balance expected for FY2014-15 is now $1.233 billion, $408 million higher than forecast in November. General fund revenues are expected to be $39.575 billion, $366 million (0.9 percent) above November's forecast. Spending is expected to be $39.019 billion, $48 million (0.1 percent) less. These changes, offset by a $6 million increase in stadium reserves, increased the forecast balance from the $825 million forecast in November.
Continued growth in Minnesota employment and income contributes to the increase in forecast revenues. So far in FY 2014, individual estimated income tax payments have been higher than expected, but most of this increase is likely due to taxpayers changing the timing of their payments, rather than higher tax liabilities.
This week, the House Taxes Committee met to discuss bills to repeal business-to-business taxes that were passed last session, and looked at adopting some federal conformity measures. The House has expressed a sense of urgency in passing the package prior to the April 1, 2014 enactment of the warehousing tax. In total, this tax package would amount to nearly $500 million in relief for Minnesota taxpayers.