>> CATHY: LAWMAKERS OFTEN SAY THEY'RE WAITING FOR THE FEBRUARY FORECAST TO MAKE DECISIONS.

WELL, BETTER BUDGET NUMBERS ARE OUT AND HOW THEY'RE BEING INTERPRETED VARIES IN THE TWO POLITICAL PARTIES.

MARY LAHAMMER EXPLAINS.

>> WE O HAVE GOOD NEWS TO SHARE.

>> Mary: THE STATE'S ECONOMIC OUTLOOK HAS IMPROVED.

THE SURPLUS IS OW PROJECTED AT $3.

BILLION, THAT'S -- $3.7 BILLION, THAT'S AN INCREASE OF OVER A BILLION COMPARED TO THE LAST BUDGET FORECAST.

>> IT'S MORNING IN MINNESOTA, THAT'S HOW WE FEEL RIGHT NOW, COMING OUT OF A PANDEMIC, COMING OUT OF A RECESSION, POTENTIAL FOR A GLOBAL RECESSION, MINNESOTA IS AS POISED BETTER THAN ANY PLACE, WE'RE MAKING THAT CASE, WE ARE THE STAR OF THE NORTH, WE'RE GOING TO BE ADVERTISING THAT, COME TO A STATE WHERE YOU HAVE AN OPPORTUNITY TO GROW, THRIVE, BE YOURSELF.

>> NICE WALLEYE, MINNESOTA GOLD RIGHT THERE.

>> AFTER YEARS AND YEARS OF GRIDLOCK AND LISTENING TO MINNESOTANS BOUT THE THINGS THAT THEY HAVE ASKED US TO DO, T IN PLACE A BUDGET ND POLICY TO SUPPORT THEM.

INVESTING IN CHILD CARE AFFORDABILITY, HEALTHCARE, IN SCHOOLS, IN WORKFORCE DEVELOPMENT, BROADBAND, HOUSING, AND MORE.

THESE ARE ISSUES THAT HAVE DOGGED MINNESOTA FOR YEARS.

>> Mary: SPENDING IS STABLE, AND MORE REVENUE HELPED SHRINK A PROJECTED STRUCTURAL SHORTFALL, WHICH REPUBLICANS DEPICT AS A DEFICIT OF MORE THAN A BILLION DOLLARS BY 2026.

>> THAT DEFICIT IS DUE TO THE RECKLESS, IRRESPONSIBLE, AND UNAFFORDABLE SPENDING SPREE LAST YEAR.

THE STATE IS STILL SPENDING.

$1.5 BILLION MORE THAN IT IS TAKING IN.

WHEN YOU LOOK AT YOUR FAMILY BUDGETS, IF YOU ARE SPENDING MORE THAN YOU ARE ACTUALLY TAKING IN, THAT RESULTS IN A FUTURE DEFICIT.

>> THERE'S REALLY NO LEAPING OVER IT.

THE TAX AND SPEND POLICIES THAT DEMOCRATS HAVE PROPOSED OVER THE YEARS AND PUT INTO LAW ARE CAUSING OUR STATE TO GO INTO THIS BOOM AND BUST CYCLE.

>> THEY'RE WRONG, THAT IS INCORRECT.

THEY OLD YOU IN NOVEMBER THAT THIS WAS CATASTROPHIC AND THE FIRST THING WE SHOULD DO IS CUT MEALS TO OUR CHILDREN AND CUT TAXES FOR THE WEALTHIEST CORPORATIONS.

NOTHING COULD BE FURTHER FROM THE TRUTH.

>> IT IS NOT A DEFICIT.

THIS IS SO SIMPLE.

>> Mary: ECONOMIC EXPERTS ARE STILL URGING CAUTION, EVEN THOUGH THE U.S. AND STATE ECONOMIES ARE BOTH IMPROVING.

>> WE SHARE THE OBJECTIVE OF KEEPING LONG-TERM FISCAL STABILITY FOR THE STATE OF MINNESOTA.

WE HAVE A VERY NICE BUDGET RESERVE THAT, I THINK, IS AS FULL AS IT'S EVER BEEN, IT'S GREAT THAT WE HAVE 3.7 IN THE NEAR TERM, BUT WE HAVE THE EYES ON THE STRUCTURAL IMBALANCE IN THE TAILS.

>> I WANT TO LIVE IN A PLACE WHERE I CAN RAISE MY FAMILY, WHERE CHILD CARE IS AFFORDABLE, WHERE I CAN GET ACCESS TO MEANINGFUL HEALTHCARE, WHERE THE WAGES AND MY JOB SUPPORT MY FAMILY, WHERE BROADBAND MEANS I CAN LIVE WHEREVER I CHOOSE TO, THE TRANSPORTATION SYSTEM IS MODERN AND FUNCTIONING, WORKS FOR S. THOSE ARE THE THINGS THAT WE INVESTED IN, THOSE ARE THE THINGS THAT MINNESOTANS ASKED US TO INVEST IN.

>> Mary: THE GROWTH OF THE SURPLUS CREATES MORE BIPARTISAN BONDING BORROWING POTENTIAL, UP TO ALMOST A BILLION DOLLARS.

>> WITH A POTENTIAL INCREASE, WE NEED TO BE WISE WITH THAT.

WE ARE NOT GOING TO COMMIT AT THIS POINT WHETHER WE'RE GOING TO GO UP.

WE ARE NOT GOING TO COMMIT THAT WE'LL EVEN GIVE VOTES FOR THAT.

>> Mary: THE STATE ECONOMIST EXPECTS WAGES TO GO UP, LARGELY BECAUSE OF SUPPLY ND DEMAND.

THE STATE STILL NEEDS MORE WORKERS TO MOVE HERE.

>> THE LABOR MARKET HAS ALREADY EASED A BIT IN MINNESOTA FROM THE RECORD LOW UNEMPLOYMENT RATES AND THE RECORD HIGH LEVELS OF JOB VACANCIES THAT WE'VE HAD.

BUT WE STILL HAVE A TIGHT LABOR MARKET IN MINNESOTA.

>> Mary: PROGRESSIVE SOCIAL POLICIES IS PART OF HOW DEMOCRATS ARE MARKETING MINNESOTA.

>> AND THAT IS THE NEXT CHAPTER IN THE DEBATE STARTED BY THE SUPREME COURT, WITH THE DOBBS DECISION ON REPRODUCTIVE FREEDOM.

WE KNOW THAT IT IS A CRITICAL ISSUE FOR MINNESOTANS AND FOR AMERICANS.

ESPECIALLY WHEN YOU THINK ABOUT YOUNG PEOPLE, THEY'RE GOING TO CHOOSE WHERE THEY LIVE KNOWING WHAT STATES STAND FOR.

AND WE'VE BEEN CRYSTAL CLEAR ON THIS ISSUE OF FREEDOM AND REPRODUCTIVE FREEDOM.

>> Mary: THE GOVERNOR AS SHARED THAT IN VITRO FERTILIZATION CREATED HIS FAMILY SO HE, TOO, IS LEANING IN ON REPRODUCTIVE FREEDOM AS A WAY TO ATTRACT WORKERS.

>> IT'S OUTRAGEOUS, WE IN MINNESOTA WILL CONTINUE TO PROTECT.

>> Mary: REMAINING ECONOMIC RISKS, INCLUDE INFLATION, INTERNATIONAL CONFLICT AND FEDERAL MONETARY POLICY, ALTHOUGH WALZ IS WORKING THE UPSIDES.

>> WE'RE MARKETING AS A TOP FIVE BUSINESS STATE.

OUR CLIMATE IS GOOD.

YOU'RE SEEING CORPORATE PROFITS ARE UP.

AT RECORD LEVELS.

THAT'S A GOOD THING.

THAT MEANS THEY'RE WORKING N IT.

WE'RE MAKING THE CASE, BOTH FROM A CHILD CARE AFFORDABILITY PERSPECTIVE, TRYING TO LOWER THE COST OF HOUSING, MAKING SURE YOU HAVE ACCESS TO PAID FAMILY AND MEDICAL LEAVE, AND JUST TO BE VERY CANDID ON THIS IS, WE'RE NOT PUTTING GOVERNMENT IN BETWEEN YOU AND YOUR DOCTOR.

WE'RE NOT TELLING YOU WHO YOU CAN MARRY, WE'RE NOT BANNING