Minnesota revenues have exceeded state forecasts by $111 million in the first quarter of fiscal 1993 despite a lagging economy, according to a report by the Minnesota Department of Finance.
Tax receipts for the first quarter of the fiscal year that began July 1 were $1.68 billion, compared to expected receipts of $1.57 billion, according to the report, which was released last month.
But Thomas Stinson, a state economist, said the revenue boost is only temporary.
"Unfortunately, we don't think all of that will go to the bottom line," Stinson said.
He said most of the increased revenues are "transitory" and will not offset a projected $837 million deficit projected for the next biennium.
For example, most of the $57 million increase in income tax revenues can be attributed to recent federal changes in withholding procedures, Stinson said.
He added that those revenues are expected to result in higher refunds to individuals rather than remain in state coffers.
In the coming months, state revenues are not expected to exceed projections because of the continued forecasts for much slower growth nationwide, Stinson said.
The report says the national economy has "entered a period of extended economic lethargy" that may extend into early 1993.
A revised estimate of the projected budgetary shortfall for the next biennium is expected Nov. 24.
