CHICAGO — Minnesota Gov. Mark Dayton on Monday dropped his proposal for an income tax surcharge on top earners after the state announced a new revenue forecast that trimmed nearly $1.2 billion off the $6.2 billion deficit looming in the next two-year budget cycle.

The latest forecast boosted the ending balance expected in the current fiscal year ending June 30 by $264 million to $664 million.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.