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ST. PAUL, Minn. — The state of Minnesota’s finances turned unexpectedly sunny Thursday when economists projected an $876 million surplus, months after a bitter budget fight largely shut down its government for nearly three weeks.
The forecast covering the rest of the state’s two-year budget cycle took state lawmakers by surprise. State forecasters said income and corporate tax collections came in higher than expected, buoyed by an economy that has outperformed other states, and that recent changes in state and federal laws led to lower health- care costs than predicted.
