Minnesota closed out fiscal 2012 on June 30 with $336 million more in revenue than predicted when the annual February forecast was released.
The state collected $115 million more from individual income taxes than previously forecast.
State economists and their advisors in February raised the forecast they made in November by $323 million.
While economic indicators suggest the state’s economy has stabilized and is on the mend, the February forecast still projects a deficit in the 2014-15 biennium of $1.1 billion.
Minnesota’s heavy reliance on one-shots to balance recent budgets drove negative rating actions last year.
Standard & Poor’s lowered its rating one notch to AA-plus. Moody’s Investors Service revised its outlook on Minnesota’s Aa1 rating to negative from stable. Fitch Ratings downgraded the state’s $6 billion of general obligation debt to AA-plus from AAA.