>> "ALMANAC AT THE CAPITOL" IS A PRODUCTION OF PBS FOR THE STATIONS.

MINNESOTA PUBLIC TELEVISION STATIONS.

>> SEEMS LIKE WE'RE LOOKING FOR A SWIRL OF SMOKE UNDER THIS DOME AS WE WAIT ON LEGISLATIVE LEADERS ABOUT A FINAL BUDGET DEAL.

THAT'S COMING UP ON "ALMANAC AT THE CAPITOL."

♪ ♪ >> "ALMANAC AT THE CAPITOL" IS MADE POSSIBLE BY MEMBERS OF THIS PUBLIC TELEVISION STATION.

SUPPORT IS ALSO PROVIDED BY ... MANITOBA HYDRO, PROVIDING CLEAN RENEWABLE ENERGY TO MINNESOTA UTILITIES FOR MORE THAN 50 YEARS.

MANITOBAHYDROPOWER.COM.

FLINT HILLS RESOURCES, A LEADING PRODUCER OF THE FUELS MINNESOTANS RELY ON EVERY DAY.

MINNESOTA LOTTERY, GENERATING OVER $4 BILLION FOR OUR STATE SINCE 1990.

GREAT RIVER ENERGY, PROVIDING WHOLESALE POWER TO 1.7 MILLION PEOPLE THROUGH ITS MEMBER-OWNER COOPERATIVES AND CUSTOMERS.

THE SHAKOPEE MDEWAKANTON SIOUX COMMUNITY, A SOVEREIGN TRIBAL NATION IN SCOTT COUNTY.

MORE AT SHAKOPEEDAKOTA.ORG.

AND THE UNIVERSITY OF MINNESOTA: HEALTHIER HERE, THERE, AND EVERYWHERE.

>> WELCOME TO "ALMANAC AT THE CAPITOL."

I'M MARY LAHAMMER COMING TO YOU LIVE FROM THE HOUSE GALLERY WHERE IT IS CRUNCH TIME HERE AT THE CAPITOL.

LEGISLATIVE LEADERS AND IS THE GOVERNOR, WE THINK ARE BEHIND CLOSED DOORS RIGHT NOW AND THEY HAVE TO COME UP WITH A DEAL SOON, LESS THAN TWO WEEKS LEFT IN SESSION, TO SOLVE THOSE BUDGET TARGETS.

WE'LL HAVE AN UPDATE WITH SOME SENATORS IN JUST A MOMENT.

WE'LL ALSO CHAT WITH THE COMMISSIONER OF ECONOMIC DEVELOPMENT AND WE'LL MEET A FIRST-TERMER WHO TOOK THE HOUSE A TIE AFTER A SPECIAL ELECTION.

BUT FIRST JUST SOME OF THE ACTION AT THE CAPITOL.

>> THE NEXT BILL ON THE CALENDAR FOR THE DAY IS HOUSE FILE 2434.

>> THE BIGGEST BUDGET BILL OR HUMAN SERVICES HIT THE HOUSE FLOOR.

>> WE WOULD NOT WANT TO HAVE TO DO THIS IN THE WAY THAT IT IS BEING DONE, BUT WE ALSO HAVE A CHARGE TO GOVERN IN THIS STATE.

AND I THINK THAT'S, THAT'S THE BIGGEST THING AS WE LOOK AT THIS BILL.

THIS IS WHEN WE'RE TASKED WITH CHANGING THE WAY THAT WE SPEND OUR BUDGETS.

>> THIS IS ONE OF THE MOST DIFFICULT BILLS I'VE EVER HAD TO DO.

I KNOW WE'VE TALKED ABOUT THE CHALLENGES AND WHY SOME PEOPLE ARE FEELING THE PAIN THAT WE SEE HERE.

THAT WAS A HUGE RESPONSIBILITY ON US.

>> NOW IT'S ON TO CONFERENCE COMMITTEES AND FINAL COMPROMISES IN THE LAST WEEKS OF THE LEGISLATIVE SESSION.

>> GOOD MORNING, EVERYONE.

WELCOME.

>> THE ONLY COMMITTEE REPUBLICANS RAN IN THE HOUSE TOOK ON WASTE, FRAUD, AND ABUSE ALL SESSION.

>> THE MISSION OF THE COMMITTEE IS REALLY TO MAKE SURE THAT TAXPAYERS' HARD-EARNED MONEY IS GOING TO THE NEEDY, NOT THE GREEDILY.

AND WE CANNOT LOSE SIGHT OF THE FACT THAT VULNERABLE MINNESOTANS, THIS IS THE BUSINESS MODEL OF FRAUD WE IDENTIFIED, VULNERABLE MINNESOTANS ARE BEING TAKEN ADVANTAGE OF.

>> IT'S BECOME REALLY APPARENT THAT WE NEED TO DO MORE IN REGARDS TO OVERSIGHT WITHIN STATE AGENCIES.

>> THERE IS INTENTIONALLY OR NOT, A CULTURE OF FRAUD THAT HAS BEEN FOSTERED BY THE CURRENT ADMINISTRATION.

>> I WANTED TO MAKE SURE THAT I HAD SOME NOTES WITH ME AND THIS IS THE VERY SIMPLE NOTE.

IT'S RIGHT HERE.

IT SAYS "FRAUD EQUALS BAD."

AND THAT'S WHAT I THINK THAT ALL OF US HAVE BEEN FOCUSING ON.

>> IF IT'S A POLITICAL SLOGAN, YEAH, YOU CAN WRITE IT ON YOUR HAND, YOU CAN PRINT A LETTER.

BUT THAT'S ACTUALLY NOT GONNA HELP THE PEOPLE F MINNESOTA, IT'S NOT GONNA HELP ENSURE THAT WE'RE PROTECTING OUR BUDGETS AND IT'S CERTAINLY NOT GONNA HELP WHOEVER WHO WE ARE LOOKING TO PROTECT.

>> SERVICE ON THE FRAUD PREVENTION COMMITTEE INFORM SOMEBODY VERY WELL ABOUT THE ANTIFRAUD PROVISIONS THAT ARE MOVING ON THE VARIOUS BILLS BECAUSE THEY DIDN'T END UP COMING IN FRONT OF OUR COMMITTEE.

>> ND A SENATE DEMOCRAT WANTS TO FIND CONSISTENT FUNDING FOR THE STATE SPORTS FACILITY, U.S. BANK STADIUM.

>> WE'RE GOING TO HAVE TO ASK OURSELVES DO WE WANT TO COME BACK THE TO LEGISLATURE EVERY TIME THERE'S A CAPITAL NEED?

OR DO WE WANT TO PROVIDE A STABLE ONGOING SOURCE OF FUNDING BY TAKING BREAKDOWN IN THE ELECTRONIC PULLTAB REVENUE AND APPLYING IT TO CAPITAL NEEDS?

>> TATE LAWS SAYS THAT THE PEOPLE'S STADIUM, U.S. BANK STADIUM IS OWNED BY THE STATE OF MINNESOTA.

NOT TO MENTION IT BEING ONE OF THE BEST STADIUMS IN THE COUNTRY.

THIS IS AN ASSET OF THE STATE OF MINNESOTA AND IT IS OUR RESPONSIBILITY TO MAINTAIN THE STADIUM.

♪ ♪ >> AS WE SAID, LEGISLATIVE LEADERS AND THE GOVERNOR ARE PROBABLY BEHIND CLOSED OORS RIGHT NOW IN ALMOST NONSTOP BUDGET NEGOTIATIONS SO WE HAVE SOME ABLE LIEUTENANTS.

SENATOR JORDAN RASMUSSON FROM THE REPUBLICAN CAUCUS AND FROM THE D.F.L.

CAUCUS, SENATOR SCOTT DIBBLE.

WELL, FIRST OF ALL, GENTLEMEN, WHAT DO WE KNOW OF HOW THINGS ARE GOING?

IS IT GETTING CLOSE BEHIND THAT DOOR?

ANYONE?

>> CONVERSATIONS CONTINUE BETWEEN THE LEGISLATIVE LEADERS AND THE GOVERNOR.

I THINK THERE ARE SOME BIG STICKING POINTS OUT THERE.

I THINK ONE OF THE CHALLENGES WE'RE SEEING IS THAT DEMOCRATS ARE STILL LOOKING TO INCREASE TAXES.

IF WE LOOK AT THE SENATE DEMOCRATS' HEALTH BILL THERE'S MORE THAN $3 BILLION IN TAX INCREASES IN THAT BILL, AND REPUBLICANS HAVE SAID WE'RE NOT INTERESTED IN NEW TAXES THIS SESSION.

>> IS THAT A STICKING POINT FROM WHAT YOU HEAR AS WELL SOME >> I THINK THE STICKING POINT IS THAT WE'RE TRYING TO BUDGET RESPONSIBLY.

YOU KNOW, I JUST HAVE TO BE CLEAR, LEVEL-SET SO THE SENATE D.F.L.

IS GETTING ITS WORK DONE, WE PASSED 15 BILLS AS I MENTIONED EARLIER.

>> MORE THAN THE HOUSE, NOT THAT THERE'S EVER A COMPETITION.

>> AND WE'RE LOOKING TO BUDGET RESPONSIBLY.

>> BUT STILL HAS TAX INCREASES WHICH REPUBLICANS ARE NOT GONNA DO AND YOU NEED REPUBLICANS IN THE HOUSE, RIGHT?

>> WELL, YOU KNOW, WE'LL SEE.

>> OKAY.

THEY SAY THEY WON'T.

>> IF WE'RE JUST GOING TO DO CUTS OF COURSE WHAT ARE WE GOING TO CUT, ARE WE GOING TO CUT ESSENTIAL SERVICES, ARE WITH EGOING TO CUT FROM EDUCATION AND DISABILITY CARE AND SENIORS AND THE LIKE?

WE JUST ROLLED OUT A TAX BILL TODAY THAT IS EXTREMELY RESPONSIBLE IN THAT THE TAX NIECE IN THERE IS ON SOCIAL MEDIA COMPANIES THAT DON'T PAY A SINGLE PENNY FROM THE BILLIONS THEY RAISE ON MINNESOTANS' DATA.

AND SO.

>> I'VE HEARD PRIVATELY SOME REPUBLICANS KIND OF LIKE THAT IDEA.

WILL ANY ADMIT IT?

>> I THINK THE REAL QUESTION IS WILL IT ACTUALLY WORK?

NO STATE IN THE COUNTRY HAS BEEN ABLE TO IMPLEMENT A KIND OF TAX LIKE THIS, AND SO WE'VE SEEN THIS BEFORE WHERE THESE DIFFERENT NEW TAX IDEAS WILL GET FLOATED BUT IN REALITY.

>> COULD IT BE A FEE?

COULD IT BE A SERVICE CHARGE?

>> A FEE IS A TAX FROM MY POINT OF VIEW.

>> AROUND IT LOGISTICALLY?

>> AGAIN I THINK WE JUST SEE THIS 6 BILLION DEFICIT IS CREATING HARD CHOICES AND I JUST THINK MINNESOTANS FEEL LIKE THEY'RE PAYING ENOUGH TAXES, AND THAT WE NEED TO PUT THEIR FAMILY BUDGETS AHEAD OF THE STATE GOVERNMENT.

>> I'LL JUST SAY DEMOCRATS HAVE PUT FAMILY BUDGETS FIRST, WE ARE BUILDING ON THE SUCCESS OF THE PAST TWO YEARS.

WE INVESTED IN KEEPING COSTS LOW FOR PEOPLE ACROSS THE BOARD, CHILD TAX CREDITS, $3 BILLION IN TAX CUTS, LOWERING PROPERTY TAXES, 75% OF ALL MINNESOTANS ON SOCIAL SECURITY DON'T PAY THIS TAXES AND WE INVESTED IN WHAT PEOPLE CARE ABOUT, EDUCATION, MAKING SURE WE'RE TAKING CARE OF PEOPLE AND SENIOR CARE.

>> LET'S JUMP IN ON EDUCATION BECAUSE THERE WAS BIG NEWS ON THAT TODAY THAT GRADUATION RATES HIT A NEW HIGH.

>> WORLD RECORD GRADUATION IN MINNESOTA.

>> -- IN EDUCATION?

CAN REPUBLICANS HAVE A VICTORY ON THAT TOO?

>> I THINK WE HAVE TO LOOK AT THE RESULTS THAT WE'RE SEEING AND UNFORTUNATELY WE'RE SEEING OVER THE PAST FEW YEARS TEST SCORES AND PROFICIENCY ARE GOING DOWN.

>> YEAH, BECAUSE THOSE NUMBERS WERE DOWN -- >> BUT THEY'RE ACTUALLY GRADUATING WITH THE SKILLS THEY NEED TO BE SUCCESSFUL IN THE WORKFORCE, AND SO, YOU KNOW, THERE'S BEEN BIPARTISAN EFFORTS ON TRYING TO IMPROVE LITERACY WITHIN OUR SCHOOLS AND I THINK THERE'S SOME MORE WORK THAT NEEDS TO BE DONE.

>> AND ACHIEVEMENT GAP, THAT APPEARS TO BE NARROWING, THAT'S BEEN A REALLY HARD ONE TO GET AFTER.

>> WELL, THIS IS THE TRUTH OF THE MATTER.

WE EXPERIENCED CALAMITOUS CUTS UNDER TIM PAWLENTY AND BEEN GETTING BACK FROM THAT LOSS.

WE PUT $5 BILLION INTO PUBLIC EDUCATION TWO YEARS AND I THINK IT'S PA PAYING OFF.

>> LUNCHES AND BREAKFAST, COULD THAT BE HELPING NOW?

COULD THAT BE WHAT WE'RE SEEING IS IT!

I THINK ONE OF THE CHALLENGES I HEAR FROM THE SCHOOL DISTRICTS I REPRESENT IS A LOT OF THEM ARE FACING REALLY CHALLENGING FINANCIAL PICTURES LOOK FORWARD BECAUSE OF MANY OF THE UNFUNDED MANDATES PUT ON THEM OVER THE LAST TWO YEARS.

WE'RE SEEING TEACHERS GETTING LAID OFF.

OUR FOCUS IS HOW CAN WE GET DOLLARS FOCUSED ON THE CLASSROOM AND AWAY FROM UNFUNDED MANDATES.

>> LET'S PIVOT IF WE CAN TO TRANSPORTATION.

>> WE PUT A RECORD AMOUNT OF MONEY INTO SPECIAL EDUCATION.

>> TRANSPORTATION, YOU'RE CHAIR.

>> YES, I LOVE IT, I'M FOR IT.

>> YOU DON'T HAVE TO SHARE A GAVEL WITH TWO CHAIRS IN THE HOUSE BECAUSE YOU HAVE CONFERENCE COMMITTEE TOMORROW.

WHAT'S THAT PICTURE LOOKING LIKE?

>> I THINK WE'RE GOING TO PROBABLY -- WE HAVE A REALLY GOOD WORKING RELATIONSHIP AND, YOU KNOW, I THINK WE'RE GOING TO PROBABLY GET THIS THING WRAPPED UP PRETTY QUICKLY.

I THINK WE ALL SUPPORT, YOU KNOW, ACTUALLY THE TRANSPORTATION FUNDS ARE IN PRETTY HEALTHY SHAPE, THAT'S THE HIGHWAY USER TAX DISTRIBUTION FUND THAT SUPPORTS OUR TRUNK IGHWAYS, HOLD THE LINE ON -- >> NOT AS MUCH FEDERAL IMPACT IN YOUR BUDGET AREA.

>> NOT QUITE AS MUCH, YEAH.

>> KAY.

AND SO WE'RE, I THINK, YOU KNOW, WE HAVE SOME OLICY DIFFERENCES AND MAYBE SOME DIFFERENT PRIORITIES AROUND WHAT TO INVEST IN AND HOW O INVEST BUT I THINK WE CAN WORK OUT OUR DIFFERENCES PRETTY QUICKLY.

>> ALL YOUR YEARS HERE YOU'VE NEVER HAD A THREE-PERSON GAVEL SHARING SITUATION.

>> NEVER, YEAH, SO THAT WILL BE INTERESTING TO SEE.

>> IT'S A BRAVE NEW WORLD.

>> AND THEY'RE GOING TO HAVE AN EVEN NUMBER OF CONFEREES SO THEY'RE GOING TO HAVE TO FIGURE OUT HOW TO GET TO CONSENSUS, WE HAVE THE ODD NUMBER OF CONFEREES.

>> YOU GOT TO SHARE A GAVEL EARLIER IN SESSION.

HOUSE IS NOW TIED.

DO YOU THINK THAT HELPED SET A DIFFERENT TONE THIS YEAR?

>> I THINK IT DID.

IT GAVE AN OPPORTUNITY TO BRING FORWARD SOME BIPARTISAN PROPOSALS EARLY ON IN SESSION AND WE'RE ACTUALLY SEEING SOME OF THE FRUIT FROM THAT WORK.

EARLIER THIS WEEK WE HAD A BIPARTISAN BILL ON THE SENATE FLOOR TO MAKE REFORMS TO EARNED SICK AND SAFE TIME.

SO THAT THOSE CONVERSATIONS REALLY GOT SPURRED EARLY IN SESSION WHEN WE HAD TO WORK TOGETHER.

>> HUMAN SERVICES, HOUSE AND NAT BILLS HAVE NOW BOTH PASSED.

THAT'S A TOUGH BUDGET AREA WITH A LOT OF FEDERAL UNKNOWNS AND FRAUD'S A CONCERN, TALK TO ME ABOUT THAT.

>> WE ARE EXTREMELY CONCERNED ABOUT THE CHAOS THAT DONALD TRUMP IS CREATING AT THE NATIONAL LEVEL, TRUMP TARIFFS, NATIONAL RECESSION THAT'S LOOMING AND THEY'RE TALKING ABOUT $800 BILLION IN CUTS TO MEDICAID WHICH WILL WIPE OUT A SIXTH OF MINNESOTA'S BUDGET, MEANS PEOPLE WILL LOSE HEALTH CARE, HOSPITALS, CLINICS, NURSING HOMES ALL OVER THE STATE OF MINNESOTA.

I DON'T EVEN KNOW HOW TO THINK OR TALK ABOUT THAT.

>> IT'S THE HARDEST PART OF THE BUDGET, ISN'T IT, HUMAN SERVICES?

>> WE SAW THE SENATE DEMOCRATS' HUMAN SERVICES BILL TODAY HAS MORE THAN A BILLION DOLLARS TODAY BILLION DOLLARS INCUTS FOR NURS.

AND THAT IS PART OF THE SPENDING SPREE AND THIS SPENDING SPREE AND T AND THIS DEFICIT.

TAXPAYER FUNDED HEALTH CARE FOR ILLEGAL IMMIGRANTS INTO THESE MEDICAID PROGRAMS WHERE WE'D GET A FEDERAL MATCH AND WE COULD ACTUALLY ADDRESS HUNDREDS OF MILLIONS OF CUTS BY REPRIORITIZING THOSE DOLLARS.

>> I HAVE TO.

SA SENATOR RASMUSSON IS NOT ACTUALLY PAINTING THE PICTURE THAT'S ACCURATE.

THE FACT IS IT WASN'T A SPENDING SPREE, WE PUT $8 BILLION ON THE BOTTOM LINE.

>> INTO RESERVES.

>> THERE WAS NO SPENDING SPREE, WE SPENT RESPONSIBLY.

>> SURPLUS IS GONE.

>> IT WAS $12 MILLION ONE-TIME THAT WE SPENT ON THINGS PEOPLE VALUE AND THIS ISSUE OF IMMIGRANT HEALTH CARE.

>> VERY QUICK, YES OR NO, -- >> SAVES MONEY.

>> -- THERE GOING TO BE A DEAL TO AVOID SHUTDOWN?

>> HOPE SPRINGS ETERNAL, I'M OPTIMISTIC, I WOULDN'T BE IN THIS BUSINESS IF I WASN'T.

>> I THINK MOVING SOME OF THESE DOLLARS AROUND, WE COULD GET IT DONE.

>> THANK YOU, GENTLEMEN.

APPRECIATE IT, SENATORS.

>> THANK YOU.

♪ ♪ ♪ >> OUR NEXT TOPIC ALSO HAS UNCERTAINTY WITH THE FEDERAL GOVERNMENT AND FUNDING AND CUTS AND JOBS AND LAYOFFS.

HERE, COMMISSIONER MATT VARILEK FROM THE DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT.

BIG PICTURE, YOU HAD JOBS NUMBERS OUT BUT THOSE JOBS WERE NOT REFLECTIVE OF THE FEDERAL LAYOFFS YET.

HOW MUCH, HOW BIG, HOW UNKNOWN IS IT?

>> IT'S A REALLY INTERESTING TIME RIGHT NOW WHERE WE HAVE LOTS OF UNCERTAINTY AT THE FEDERAL LEVEL WITH TARIFFS ON AND OFF, WITH BIG CUTS AT FEDERAL AGENCIES, WITH FEDERAL INTERRUPTIONS OF GRANTS TO ENTITIES LIKE PBS, FOR EXAMPLE.

THOSE NUMBERS, THOUGH, THAT WE ISSUED IN MARCH DON'T YET SHOW THE RESULTS OF THE LAYOFFS BECAUSE IN A LOT OF CASES ANNOUNCED LAYOFFS STILL INVOLVE PEOPLE WHO ARE ON THE JOB.

SO THAT WILL SHOW UP IN THE MONTHS AHEAD.

THE GOOD NEWS FOR MINNESOTA IS THOUGH THAT OVER HE LAST COUPLE YEARS WE'VE BUILT UP REALLY AHEAD OF STEAM IN TERMS OF ECONOMIC PROGRESS AND WE ANNOUNCED THAT WE ADDED 10,000 JOBS IN THE STATE OF MINNESOTA, WHICH S I THINK IT WAS 0.4% VERSUS 0.1, THE NATIONAL AVERAGE SO WE'RE LOOKIN' REALLY GOOD.

>> FOR NOW THOUGH, RIGHT?

BECAUSE THE FEDERAL GOVERNMENT'S WHAT, TOP THREE, TOP FIVE MPLOYER IN THE STATE?

OR HAS IT DROPPED DOWN?

USED TO BE ONE OF THE TOP EMPLOYERS.

>> 18,000 FEDERAL EMPLOYEES IN MINNESOTA IS THE NUMBER THAT I'M FAMILIAR WITH.

AND SO THERE IS THE EMPLOYMENT IMPACT OF JUST BEING WHO NO LONGER GET A PAYCHECK EVERY DAY BUT THEN THERE'S ALSO THE SERVICES IMPACT OF PEOPLE WHO ARE NO LONGER HELPING OUR VETERANS WITH THE THINGS THEY NEED AT THE V.A.

OR, YOU KNOW, I'M A FORMER FEDERAL EMPLOYEE MYSELF, I WORKED FOR THE U.S. SMALL BUSINESS ADMINISTRATION AND THEY'VE TAKEN SOME CUTS AND WHO'S HELPING THOSE SMALL BUSINESSES ET THE LOANS THEY NEED.

OF COURSE WE HAVE RESOURCES AT D.E.E.D.

THAT WE WANT TO HELP WITH, BUT CERTAINLY THERE WILL BE A LOT OF IMPACTS BOTH ON THE EMPLOYMENT SERVICE AND THE -- AND THE SERVICES SIDE FROM THE FEDERAL.

>> BASED ON YOUR EXPERIENCE WHAT UNIQUE VIEWPOINT DO YOU HAVE ON THIS?

>> IT'S PUBLIC SERVICE RECOGNITION WEEK RIGHT NOW IRONICALLY AND THAT IS THE WEEK OF THE YEAR WHEN WE MAKE A POINT OF THANKING ALL OF THOSE WHO ARE GOVERNMENTAL EMPLOYEES FOR THE WORK THEY DO.

I WORK ALONGSIDE THEM, I SEE THE DEDICATION, A LOT OF CASES PEOPLE HAVE TALENTS THEY COULD PROBABLY MAKE A ON LOT OF MONEY ELSEWHERE BUT THEY CARE ABOUT MAKING MINNESOTA A BETTER PLACE.

THAT'S WITH WHERE IT HITS HOME WHEN WE SEE IMPACTS TO LIVES AND PAYCHECKS BUT EVEN THE WAY WORKERS ARE SPOKEN ABOUT.

IN MINNESOTA WE HONOR THEM.

THE GOVERNOR HAS ROLLED OUT THE WELCOME MAT FOR DISPLACED FEDERAL WORKERS O SAY WE WANT YOU HERE IN MINNESOTA.

>> THERE'S STILL JOB OPENINGS AND YOU'RE ACTIVELY RECRUITING SOME OF THOSE FEDERAL WORKERS, BUT PART OF THAT WHEN THEY COULD BE REMOTE.

IN PERSON MIGHT BE A LITTLE HARDER.

>> YEAH, EVERY EMPLOYEE HAS TO MAKE THEIR DECISION ABOUT WHAT KIND OF FLEXIBILITY THEY THINK IS NECESSARY AND IT'S TRUE ON A CASE BY CASE BASIS IN SOME INSTANCES WE HAVE DEPARTMENTS THAT ARE HIRING, FOR EXAMPLE AT D.E.E.D.

WE ARE STILL IN THE PROCESS OF STANDING UP THE NEW PAID LEAVE PROGRAM WHICH A LOT OF PEOPLE ARE VERY EXCITED ABOUT.

ON THE OTHER HAND, PROGRAMS THAT ARE FEDERALLY FUNDED AND MAYBE HAVE HAD THAT FUNDING GO AWAY, IN THE CASE OF OUR COLLEAGUES AT MINNESOTA DEPARTMENT OF HEALTH, I THINK THEY LOST 170 PEOPLE BECAUSE THE RUG WAS PULLED ON SOME FEDERAL FUNDS THAT HAD BEEN COMMITTED.

>> AND THEY'RE NOT YET ON UNEMPLOYMENT ROLLS FOR YOU.

>> I BELIEVE THEY'RE STILL WORKING SO, YES, THEY'RE NOT SHOWING UP YET IN UNEMPLOYMENT FIGURES.

WE'LL HAVE NEW NUMBERS I WANT TO SAY MAY 15TH SO WE'LL SEE IF THEY'VE SHOWN UP THERE YET.

WE'RE IN THAT IN-BETWEEN TIME, YOU LOOK THE ACONSUMER CONFIDENCE WHICH IS NOT SO GOOD, THE GYRATIONS IN THE STOCK MARKET.

AGAIN, TARIFFS, TRADE IMPEDIMENTS ARE ONE THING AND UNCERTAIN TRADE IMPEDIMENTS THAT GO UP AND DOWN, YOU DON'T KNOW WHAT NUMBER TO PUT IN YOUR SPREADSHEET TO DECIDE IS THIS A GOOD BUSINESS DECISION OR NOT.

FOR EXAMPLE THE GOVERNOR AND I WERE AT PHILLIPS IN PLYMOUTH AWHILE AGO ANNOUNCING A $31 MILLION EXPANSION THEY'RE DOING.

IT'S A DUTCH COMPANY.

UP IN DULUTH $200 MILLION INVESTMENT BY SOFIDEL, A PAPER COMPANY, AND THESE WERE INVESTMENTS WHERE THE STATE PROVIDED FUNDS TO HELP MAKE THEM HAPPEN AS WELL.

>> HOW ARE AGENCIES LOOKING AT STATE BUDGETS, HOW IS IT LOOKING IN THE HOUSE AND SENATE FOR YOU?

>> IT'S GOING TO BE QUITE THE TRANSITION FROM THE POST-2023 SESSION WHERE WE HAD ONE-TIME DOLLARS THAT WE HAVE MADE EXCITING INVESTMENTS IN.

AS EXAMPLES OF HOW YOU CAN USE SOME OF THOSE ONE-TIME DOLLARS THAT'S PARTLY WHAT WE USED FOR BUSINESS INCENTIVES TO ACHIEVE SOME OF THESE HUGE JOB INCREASES WHICH WILL YIELD TAW RESOURCES DOWN THE LINE.

NOW IN THE NEXT BIENNIUM WE WERE ALREADY SET TO GO DOWN A LOT BECAUSE ONE-TIME RESOURCES WOULDN'T HAVE BEEN THERE AND THEN DEPENDING ON WHAT ULTIMATELY GETS AGREED IN TERMS OF TARGETS, CHANCES ARE WE MAY SHRINK SOME MORE.

AND THE GOVERNOR HAS PROPOSED WHAT WE THINK ARE REASONABLE, RESPONSIBLE REDUCTIONS WHILE PROTECTING SOME OF THOSE CORE INVESTMENTS AND SO WE KNEW THIS WAS IN THE CARDS.

THE QUESTION IS WHERE WILL THE CUTS OCCUR AND JUST HOW DEEP.

>> AND DO YOU HAVE TO COME BACK FOR SPECIAL SESSION WHEN YOU REALLY KNOW THE IMPACT OF FEDERAL LAYOFFS AND CUTS?

>> WELL, IT'S GOING TO BE AN EVOLVING PROCESS OVER TIME.

WE HAVE THE STATE DEADLINES OF MAY 19TH ND POTENTIAL SHUTDOWN AFTER THAT.

AND WHEN A FEDERAL BUDGET GETS TOTALLY WRAPPED UP VERSUS CR, WHO KNOWS, WE HAVE TO BE ADAPTABLE.

>> I GET IT.

WE'RE OUT OF TIME.

WHAT A YEAR TO BE A NEW LAWMAKER AND NEWEST MEMBER OF THE CHAMBER HERE OFFICIALLY BROUGHT THE HOUSE TO TIE AFTER A PECIAL ELECTION.

>> THE QUESTION I ALWAYS START WITH IS WHY DO YOU RUN?

YOURS IS A COMPLETELY DIFFERENT QUESTION BECAUSE OF A SPECIAL ELECTION KIND OF THRUST YOU INTO THIS, RIGHT?

>> YEAH.

YEAH, THERE'S MANY REASONS WHY YOU RUN.

I MEAN, THERE'S THE, FOR ME IT REALLY CAME DOWN TO I WANTED TO GIVE BACK TO THE COMMUNITY THAT GAVE ME SO MUCH.

I WAS BORN AND RAISED IN THE DISTRICT THAT I NOW REPRESENT WHICH IS A HUGE HUGE HONOR.

AND REALLY THAT CALL TO PUBLIC SERVICE AND AS I SAID WANTING TO GIVE BACK TO THE COMMUNITY THAT BASICALLY RAISED ME WAS MY PRIMARY DRIVER AND OBVIOUSLY WITH THE SPECIAL ELECTION, I HAD PREVIOUSLY RUN IN THE ENDORSEMENT PROCESS BACK IN 2024 AND THE D.F.L.

SIDE OF THINGS, DIDN'T GO MY WAY, I OBVIOUSLY BOWED OUT AND THINGS HAPPENED.

>> YES, THEY DID.

RESIDENCY CHALLENGE IN COURT.

>> YES, RESIDENCY CHALLENGE.

>> THAT CREATED MAJOR RAMIFICATIONS IN THIS CHAMBER.

>> CORRECT.

AND SO WHEN THE SPOT OPENED UP I THOUGHT TO MYSELF I HAD BUILT A LOT OF GREAT CONNECTIONS THROUGH THAT PREVIOUS RUN.

>> WAS ANY ART OF THAT NERVE WRACKING, WHILE IT IS A D.F.L.

DISTRICT, YOU KNOW, WERE PEOPLE KIND OF MAD THE DEMOCRAT REALLY DIDN'T LIVE IN THE DISTRICT?

WERE YOU AT ALL WORRIED ABOUT ITS COMPETITIVENESS SOME >> I DON'T KNOW THAT I WAS WORRIED ABOUT ITS COMPETITIVENESS BUT THERE CERTAINLY WAS A LOT OF FRUSTRATION AND ANGER WITHIN THE DISTRICT ON BOTH SIDES OF THE AISLE.

THE THING I GO BACK TO IS IT WAS A MAJORLY UNFORCED ERROR, IN THIS POLITICAL CLIMATE WE CAN'T AFFORD THAT.

>> YOU ARE LITERALLY THE TIE VOTE.

DEMOCRATS WERE DOWN A SEAT, YOU ARRIVED, THEY GO UP TO PARITY AND COCHAIRS AND THE ENTIRE COMPOSITION OF LEGISLATIVE BODY CHANGED WITH YOUR ARRIVAL.

HOW HEAVY THAT?

>> I GUESS IT IS HEAVY BUT REALLY THE FOLKS THAT WERE BEARING THE WEIGHT OF THAT IT REALLY WASN'T ME.

>> DO YOU GET TO BE THE MOST POPULAR DEMOCRAT?

>> I GUESS, BUT I REALLY WANT TO RECEDE BACK INTO THE SHADOWS OF EFFECTIVE GOVERNANCE, YOU KNOW WHAT I MEAN, I WANT TO BE HERE, I WANT TO DO THE JOB WELL, AND BE PART OF THE TEAM.

>> SO HERE YOU ARRIVE IN A TIED CHAMBER WITH COCHAIRS.

>> YEAH.

>> IN A BUDGET YEAR.

HOW FAST AND HOW HARD DID YOU HIT THE GROUND RUNNING?

>> IMMEDIATELY, I THINK THE ELECTION WAS ON MARCH 11TH, I HAD ONE ORIENTATION DAY THAT FRIDAY, AND THEN I WAS SWORN IN ON MONDAY.

AND THEN IT WAS JUST HITTING THE GROUND RUNNING, STRAIGHT INTO COMMITTEE MEETINGS, STRAIGHT INTO CONSTITUENT MEETINGS, EVERYTHING.

>> WHAT DID YOU LEARN FROM THE VOTERS?

WHAT DID YOU EAR?

>> I GOT TO RUN SUBSTANTIVELY BEFORE THE INAUGURATION OF PRESIDENT DONALD TRUMP AND THEN AFTERWARDS AND I WILL SAY THE TENOR OF THE CONVERSATIONS THAT I HAD AT THE DOORS WITH FOLKS REALLY CHANGED AFTER JANUARY 20TH.

AND A LOT OF FOLKS ARE REALLY, REALLY CONCERNED ABOUT WHAT'S HAPPENING NATIONALLY AT LEAST IN MY DISTRICT.

>> LGBTQ FOLKS, REALLY SCARED ABOUT WHAT'S HAPPENING NATIONALLY.

THIS ISSUE'S PERSONAL FOR YOU, WHAT DO YOU WANT TO SAY ABOUT THAT?

>> YOU'RE RIGHT, IT S PERSONAL TO ME.

I AM A MEMBER OF THE LGBTQ COMMUNITY, I AM IN A STRAIGHT-PASSING RELATIONSHIP BUT I'M NOT STRAIGHT, I'M PART OF THE LGBTQ COMMUNITY.

>> DID YOU TALK ABOUT IT, DID CONSTITUENTS WANT TO TALK ABOUT IT?

>> I DID.

YEAH.

I'LL BE FRANK, SOME OF THE TALKING POINTS SPECIFICALLY ABOUT TRANS FOLKS, WHICH I VIEW AS VERY, VERY HATEFUL TALKING POINTS ABOUT REALLY DENYING THEIR AUTONOMY AS INDIVIDUALS, UNFORTUNATELY CREEPED INTO SOME OF MY CONSTITUENCY AS WELL.

AND THEY WERE BLAMED FOR I THINK A LOT OF THE LOSSES THAT HAPPENED IN 2024.

WHICH I WAS DISHEARTENED TO SEE.

SO FOR ME IT'S VERY, VERY MUCH IMPORTANT TO ELEVATE THE STORIES AND EXPERIENCES OF FOLKS IN THE LGBTQ COMMUNITY AND SPECIFICALLY THE TRANS COMMUNITY TO MAKE SURE THAT WE ARE HUMANIZING, YOU KNOW, OUR BROTHERS, SISTERS, AND SIBLINGS IN THAT COMMUNITY.

>> WHAT ABOUT THE FISCAL ISSUES?

BECAUSE WE MENTIONED THIS IS A BUDGET SESSION, SO, YEAH, MAYBE DEMOCRATS AND REPUBLICANS CAN SOLVE THE STATE BUDGET.

BUT YOU MAY HAVE TO COME BACK, RIGHT?

YOU HAVE NO IDEA WHAT THE FEDERAL IMPLICATIONS ARE, DO YOU YET?

>> I THINK THIS IS THE FIRST TIME WE REALLY HAVE NO IDEA EXACTLY HOW MANY CUTS ARE GOING TO COME FROM THE FEDERAL LEVEL.

RIGHT NOW THEY'RE ALREADY CUTTING, ALREADY PROMISED DOLLARS TO THE STATE.

FRANKLY I'VE BEEN IMPRESSED SO FAR WITH SOME OF THE BIPARTISANSHIP THAT I'VE SEEN ON THE AGRICULTURE AND ENVIRONMENT COMMITTEES THAT I SIT ON, THOSE ARE THE TWO BUDGET COMMITTEES I SIT ON, OR FINANCE COMMITTEES, RATHER.

AND I WILL SAY WE'VE HAD SOME GREAT BIPARTISAN DISCUSSIONS ABOUT WHERE TO ALLOCATE SOME OF THESE FUNDS.

WE'RE NOT GOING TO AGREE ON EVERYTHING AND I THINK OUR BILLS REFLECT THAT THERE ARE SOME THINGS THAT THE, YOU KNOW, REPUBLICANS PUT IN THERE THAT THE DEMOCRATS PROBABLY WOULDN'T HAVE BUT VICE VERSA IS TRUE TOO SO I REALLY DO THINK THE BILLS WE HAVE COME TO AGREE ON REFLECT REALLY THAT BALANCE AND I AM GREATLY APPRECIATIVE OF THAT.

>> ARE YOU SURPRISED AT ALL OVERALL, THE IDEA OF WHAT YOU THOUGHT THIS WOULD BE VERSUS WHAT IT HAS BEEN SO FAR?

>> I CAME INTO THIS I THINK WITH PRIOR KNOWLEDGE FROM MY PREVIOUS ADVOCACY AND ACTIVISM WORK SO I WAS ABLE TO SEE KIND OF THE MOVING AND SHAKING ON THE FLOOR FROM AFAR SO THAT GAVE ME A GOOD FOUNDATION TO BUILD UPON I THINK.

>> DO YOU FEEL LIKE THE BIPARTISANSHIP AND COCHAIR MODEL IS WORKING SURPRISINGLY WELL?

I DO EAR THAT, I DON'T KNOW IF PEOPLE WANT TO ADMIT.

>> I DO, I THINK IT IS.

I THINK THERE HAVE BEEN SPECIFICALLY RECENTLY CHALLENGES TO BIPARTISANSHIP ON THE FLOOR, BUT AS FAR AS IN COMMITTEE I REALLY DO THINK THAT WE HAVE FOUND THAT WORKING IN A BIPARTISAN MANNER WITH THE COCHAIR MODEL AND AN EQUAL, A TIED MODEL FOR MEMBERS ON EITHER SIDE OF THE COMMITTEE, REALLY HAS BEEN AN EFFECTIVE WAY TO PUSH, YOU KNOW, IMPROVE THE LIVES OF MINNESOTANS WITHOUT REALLY MAYBE ROCKING THE BOAT TOO MUCH.

>> DO YOU THINK IT'S EMBLEMATIC OF US HAVING A DIVIDED ELECTORATE, SO WE CREATED DIVIDED LEGISLATURE?

>> THAT'S WHAT PEOPLE VOTED FOR IN NOVEMBER 2024 AND I WAS AFFIRMED AGAIN IN MARCH OF THIS YEAR, THAT'S OUR MANDATE.

IT WAS AFFIRMED AND WE HAVE TO WORK TOGETHER AND THAT'S WHAT THE VOTERS WANT.

♪ ♪ >> AND WE'LL BE BACK NEXT WEEK WITH HOUSE LEADERS.

MEANTIME HEAD TO OUR WEBSITE TPT.ORG/AATC.

YOU CAN WATCH THIS PROGRAM AND FOLLOW US ON SOCIAL MEDIA.

ALSO WATCH THE LEGISLATURE, THE FINAL DAYS AND WEEKS HERE, HOUSE AND SENATE FLOOR SESSIONS, NOW CONFERENCE COMMITTEES, PRESS CONFERENCE, MUCH MORE FRIDAY ON "ALMANAC" ERIC AND CATHY WILL TALK WITH FORMER LEADERS AND I'LL TAKE A LOOK AT WASTE, FRAUD AND ABUSE AND HOW IT'S A BIPARTISAN ISSUE GAINING A LOT F MOMENTUM HERE AT THE CAPITOL.

THANKS FOR WATCHING SO MUCH.

SEE YOU AGAIN NEXT WEEK.

GOOD NIGHT.

♪ ♪ ♪ >> "ALMANAC AT THE CAPITOL" IS MADE POSSIBLE BY MEMBERS OF THIS PUBLIC TELEVISION STATION.

SUPPORT IS ALSO PROVIDED BY ... MANITOBA HYDRO, PROVIDING CLEAN RENEWABLE ENERGY TO MINNESOTA UTILITIES FOR MORE THAN 50 YEARS.

MANITOBAHYDROPOWER.COM.

FLINT HILLS RESOURCES, A LEADING PRODUCER OF THE FUELS MINNESOTANS RELY ON EVERY DAY.

MINNESOTA LOTTERY, GENERATING OVER $4 BILLION FOR OUR STATE SINCE 1990.

GREAT RIVER ENERGY, PROVIDING WHOLESALE POWER TO 1.7 MILLION PEOPLE THROUGH ITS MEMBER-OWNER COOPERATIVES AND CUSTOMERS.

THE SHAKOPEE MDEWAKANTON SIOUX COMMUNITY, A SOVEREIGN TRIBAL NATION IN SCOTT COUNTY.

MORE AT SHAKOPEEDAKOTA.ORG.

AND THE UNIVERSITY OF MINNESOTA: HEALTHIER HERE, THERE, AND EVERYWHERE.

♪ ♪ >> "ALMANAC AT THE CAPITOL" IS A PRODUCTION OF TWIN CITIES PBS FOR THE STATIONS OF MINNESOTA PUBLIC TELEVISION ASSOCIATION.