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

>> CATHY: BIG SHOW FOR YOU TONIGHT.

GOVERNOR WALZ IS HERE IN THE STUDIO WITH US.

DULUTH'S NEWLY ELECTED MAYOR, ROGER REINERT, DROVE DOWN I-35.

MARK DEPAOLIS HAS SOME HOLIDAY SHOPPING TIPS FOR US, AND MARY LAHAMMER HAS BEEN TRACKING NUMBERS AT THE CAPITOL.

>> Mary: ANOTHER BUDGETS SURPLUS BUILT A DEFICIT COULD BE ON THE HORIZON.

WE'LL CONTEXTUALIZE THE ECONOMIC FORECAST.

>> WE'VE NAVIGATED THE MOST VOLATILE ECONOMIC SITUATION SINCE THE GREAT DEPRESSION.

>> NO MATTER HOW THEY SPIN THIS, THIS IS A DEFICIT.

>> Mary: THAT'S COMING UP, ON "ALMANAC."

♪♪ "ALMANAC" IS MADE POSSIBLE BY MEMBERS OF THIS PUBLIC TELEVISION STATION.

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AND EDUCATION MINNESOTA: THE VOICE FOR PROFESSIONAL EDUCATORS AND STUDENTS THROUGHOUT THE STATE.

MORE AT EDUCATIONMINNESOTA.ORG.

>> CATHY: WE HAVE A FULL SHOW FOR YOU TONIGHT.

GOVERNOR TIM WALZ IS HERE, A DUO OF LEGISLATIVE LEADERS, ST. PAUL PIONEER PRESS REPORTER FRED MELO HAS AN UPDATE ON THE ST. PAUL BUDGET, STAR TRIBUNE'S RACHEL BLOUNT HAS AN UPDATE ON THE NEW WOMEN'S PRO HOCKEY LEAGUE... >> ERIC: WE'LL TALK WITH THE GOVERNOR IN JUST A COUPLE OF MINUTES.

WE START WITH THE BUDGET SURPLUS ANNOUNCEMENT EARLIER THIS WEEK, MUCH SMALLER THAN THIS TIME LAST YEAR, WITH A WARNING OF A DEFICIT ON THE HORIZON.

MARY LAHAMMER PICKS UP THE STORY FROM THERE.

>> THANK YOU TO THE PEOPLE OF MINNESOTA, HARD-WORKING FOLKS WITH VERY HIGH LABOR PARTICIPATION RATES, AN ECONOMY THAT CONTINUES TO GROW, PRODUCING JOBS, SOME OF THE HIGHEST PER CAPITA INCOMES IN THE COUNTRY.

AND OVERALL, VERY SOLID.

[Cheering] >> Mary: AFTER DEMOCRATS SPENT BILLIONS OF THE RECORD $17 BILLION SURPLUS, EXCESS MONEY CONTINUES TO COME INTO THE STATE WITH A $2.4 BILLION SURPLUS.

>> IT'S ALSO A GREAT DAY IN MINNESOTA BECAUSE WE HAVE A BALANCED BUDGET THIS BIENNIUM AND THE NEXT.

TODAY'S ECONOMIC FORECAST SHOWS THAT DEMOCRATS ARE GROWING THE ECONOMY IN MINNESOTA.

THE POLICIES THAT WE'VE ENACTED ARE SUPPORTING MINNESOTA'S WORKERS, REDUCING COSTS FOR FAMILIES, AND GROWING THE LABOR FORCE.

>> BUT A STRUCTURAL IMBALANCE IS PROJECTED YEARS OUT WITH INFLATION AGAIN FACTORED IN, ALONG WITH INCREASED SPENDING ON DISABILITY SERVICES AND EDUCATION COSTS FOR MORE ENGLISH LEARNERS AROUND FREE BREAKFAST FOR ALL, SOMETHING REPUBLICANS IMMEDIATELY LABELED A DEMOCRAT DEFICIT.

>> WHAT WE SEE TODAY IN THE FEBRUARY FORECAST IS A $10 BILLION DEFICIT.

I WILL SAY THAT AGAIN.

IT IS A DEFICIT.

NO MATTER WHAT THE SEMANTICS THAT WE'VE HEARD TODAY, NO MATTER HOW THEY SPIN THIS, THIS IS A DEFICIT.

>> SPENDING IS EXPECTED TO EXCEED REVENUES.

THAT'S A DEFICIT, MY FRIENDS.

>> REPUBLICANS SAY DEMOCRATS SQUANDERED THE OPPORTUNITY FOR BIG TAX CUTS AND NOW TAX REBATES ARE TAXABLE BY THE FEDERAL GOVERNMENT, NEWS THE GOVERNOR GREETED WITH CHOICE WORDS.

>> BULLSHIT.

IT'S THE IRS, I WILL TELL YOU THIS, I HAVE BEEN ON THE PHONE NOT MUCH MORE JUDICIOUS THAN THAT SLIP THERE.

TO LET THEM KNOW AND I SPOKE TO THE PRESIDENT'S CHIEF OF STAFF YESTERDAY WHEN THIS BECAME CLEAR, MINNESOTA IS BEING TREATED UNFAIRLY IN THIS.

>> I THINK IT'S GOING TO BE VERY RUSTRATING FOR MINNESOTANS.

THEY WERE EXPECTING A $2,000 REBATE CHECK AND THEY GOT $260 AND NOW ON TOP OF THAT, THEY'LL HAVE TO PAY FEDERAL TAXES.

MINNESOTANS ARE IN CREDIBILITILY FRUSTRATED AT HOW THE $17.5 BILLION SURPLUS WAS SQUANDERED AND THIS JUST ADDS INSULT TO INJURY.

>> Mary: DEMOCRATS AGAIN GET TO DECIDE WHAT TO DO WITH ANOTHER BUDGET SURPLUS WHILE THEY STILL HAVE COMPLETE CONTROL OF THE CAPITOL BEFORE HOUSE MEMBERS STAND FOR REELECTION NEXT YEAR.

>> AS WE LOOK FORWARD TO THE 2024 SESSION, OUR HIGHEST PRIORITY AND OUR FOCUS WILL BE THE BONDING BILL.

>> LET'S START BUILDING.

[Cheering] >> Mary: BUT AFTER BREAKING THE BILLION-DOLLAR BARRIER ON A BONDING BILL, IT NOW HAS TO BE SMALLER.

>> IF THEY SAY IT'S GOING TO TAKE ANOTHER 880 MILLION TO KEEP UP WITH INFLATION, I DON'T KNOW HOW, YOU KNOW, YOU CAN HAVE A BONDING BILL, YOU CAN KEEP UP WITH INFLATION, YOU CAN HAVE ALL THESE OTHER PROGRAMS SO I THINK WE'LL TO HAVE TAKE A SERIOUS LOOK AT THAT.

>> Mary: DESPITE TRYING TO AVOID THE WORD "DEFICIT" IN THE BUDGET FORECAST, THE NEW COMMISSIONERS COMMITTED IT WAS POSSIBLE.

>> IT'S POSSIBLE.

OVERALL, I WOULD CHARACTERIZE THE OUTLOOK AS MIXED.

>> CHILD CARE, WHOO.

>> THINGS LIKE A HALF A BILLION-DOLLAR CHANGE PROPOSAL FROM KEY LAWMAKERS LOOKS LESS LIKELY.

>> YOU'RE STILL HEARING THAT CHILD CARE IS A BIG ISSUE ACROSS THE STATE AND SO WE'LL AT LEAST HAVE THE DISCUSSION.

WE TOLD THEM, YOU KNOW, MAKE THAT BILL SCALABLE.

>> MINNESOTANS SEE A DEMOCRATSIC STATE LEGISLATURE AND A DEMOCRATIC GOVERNOR WHO VALUE THEIR CONTRIBUTIONS AS WORKERS, AND WHO HAVE ENACTED POLICIES TO ENSURE THAT THEY GET THE PAY, THE BENEFITS AND THE WORKING CONDITIONS THAT THEY DESERVE.

AND MINNESOTANS ARE RESPONDING TO THE DEMOCRATIC PRO-WORKER POLICIES BY CHOOSING TO WORK IN RECORD NUMBERS.

>> SINGLE-PARTY CONTROL, IN ONE YEAR THEY HAVE COMPLETELY EVISCERATED IT.

I AM INCREDIBLY DISAPPOINTED AT THE LANGUAGE THAT WAS USED TODAY TO HIDE THAT FROM YOU AS REPORTERS, BUT ALSO FROM MINNESOTANS, TRYING TO MASK WHAT'S ACTUALLY GOING ON IN THE STATE.

>> Mary: THE GOVERNOR SAYS HE'LL BE RESPONSIBLE, MEASURED AND BALANCED GOING FORWARD WITH THE LESSONS OF THE PAST.

>> WE'VE NAVIGATED THE MOST VOLATILE, ECONOMIC SITUATION SINCE THE GREAT DEPRESSION, AND WE'VE DONE SO BY BALANCING THE BUDGET WITH SURPLUS WHILE INVESTING HEAVILY IN THE MIDDLE CLASS AND CUTTING TAXES FOR THE MIDDLE CLASS.

>> ERIC: JOINING US NOW TO TALK BUDGET FORECAST AND MORE, DFL GOVERNOR TIM WALZ.

GOVERNOR, THANKS FOR BEING HERE.

YOUR MESSAGE TO THE DFL CONSTITUENCY GROUPS THAT WANT MORE MONEY, TEACHERS, DAY CARE ADVOCATES, ET CETERA.

>> WELL, FIRST OF ALL, THANK YOU, WE INVEST IN THE MIDDLE CLASS WHETHER IT'S CHILD CARE, INVEST YOU KNOW IN EDUCATION, MAKING SURE WE HAVE MEALS FOR THE KIDS AND INVESTING IN AN INFRASTRUCTURE THAT'S BEEN NEGLECTED FOR QUITE A WHILE.

BUT TO UNDERSTAND WITH A VOLATILE ECONOMIC ECONOMY GLOBALLY, WE SHOULD BE CAUTIOUS.

I THINK WE DO A BONDING BILL AND TRY TO KEEP SOME OF HOSE THINGS -- AGAIN, THIS IS AN OFF-YEAR, WE'LL HAVE A BUDGET BILL NEXT YEAR, WE'LL TRY TO KEEP THOSE THINGS MEASURED.

>> HOW TOUGH IS IT TO SAY NO, THOUGH?

>> YOU DO IT IN EVERY BUDGET BILL, WE'RE NOT SEEING THE BENEFITS OF THE THINGS LIKE PAID FAMILY MEDICAL LEAVE, WE'RE NOT SEEING CHILD TAX CREDIT REFLECTS THE GROWTH THAT WE'LL START TO SEE IN THE ECONOMY AND I THINK IT'S GIVE US TIME.

LET'S IMPLEMENT THE THINGS, MAKE A DIFFERENCE.

>> Cathy: AS YOU KNOW, MANY MORE PROGRAMS LOOK LIKE THEY NEEDED MORE MONEY THAN PLANNED FOR, SCHOOL WILL YOU KNOW.

>> IS ONE.

YOU DIDN'T SEE THAT COMING?

>> WE'VE GOT A LOT OF PEOPLE USING IT, I'M GLAD THEY ARE.

THIS IS NOT A BAD PROBLEM, IT'S A GOOD THING.

WE SAW A 17% INCREASE IN THE FIRST MONTH.

MOST OF THE DRIVERS F THIS ARE THINGS THAT WERE PRIOR TO THIS ELECTION LAYTIVE SESSION, DISABILITY WAIVERS WAS ABOUT HALF F IT.

WE SAW LESS SPENDING ON EMPLOYMENT INSURANCE FOR BUS DRIVERS, SO THESE THINGS START TO WORK THEMSELVES OUT.

BUT, LOOK, WE'RE NOT GOING TO GIVE TAX CUTS TO MILLIONAIRES SO WE CAN GET SCHOOL MEALS, IF THAT'S WHAT I HEARD THE OTHER DAY.

THESE ARE THINGS, YOU PUT THEM INSIDE IT S PARAMETERS AND SEE WHAT THE USAGE IS.

IF WE HAVE THIS MEAN FAMILIES USING THE PROGRAMS, THEN THEY NEEDED TO BE THERE IN THE FIRST PLACE AND THEY'RE WORKING.

>> IF YOU'RE LOOKING AT A STRUCTURAL SHORTFALL, ARE YOU LOOKING AT POTENTIALLY RAISING TAXES DOWN THE LINE?

>> LOOK, MINNESOTA DOES SOMETHING REALLY GREAT.

WE DO TWO BIENNIUMS.

THIS IS '26 AND '27, THREE LEGISLATIVE SESSIONS OUT.

THIS CURRENTS BIENNIUM WHICH WE'RE REQUIRED BY LAW, WE'RE RUNNING A SURPLUS.

WE DO SOMETHING THAT HAD NEVER HAD THE COURAGE DO DO BEFORE, WE ADDED INFLATION INTRO THIS.

WE COULD DISEASE SORT THE NUMBERS AND HOW THIS BEING $HIM 80 MILLION LEGS, LIKE THEY'VE DONE EVERY OTHER YEAR, WITH HE DIDN'T DO THAT.

WHEN WE SAW IN '20 AND '21, WE SAW THE NOVEMBER FORECAST TO THE FEBRUARY FORECAST FLUCTUATE ABOUT $8 BILLION IN THAT TIME.

THESE ARE FORECASTS.

I THINK IT WHAT IT TELLS US, WE'VE CUT TAXES FOR THE MIDDLE CLASS AND WE'VE INVESTED MORE HEAVILY IN THE MIDDLE CLASS THAN WE HAVE HAVE BUT TO BE CAUTIOUS AND WATCH THIS.

THE GLOBAL ECONOMY IS STILL STRUGGLING, UNITED STATES IS LUCKY THAT WE'RE IN AI MUCH BETTER PLACE THAN MOST OF THOSE BUT THIS TELLS YOU TO BE CAUTIOUS AND THIS IS HOW DO YOU UDGETING, I WILL COME BACK TO THAT AGAIN.

WE'VE NAVIGATED FIVE YEARS OF THIS IN A WAY THAT SOME OF THE MOST CHALLENGING ECONOMIC SITUATIONS AND WE'VE DONE SO RESPONSIBLY.

>> Eric: YOU DID GET ISSUED WALZ CHECKS, $260 AND UP, BUT THE IRS APPARENTLY A DEADLINE WAS MISSED BY THE STATE SO THAT THE IRS IS NOW GOING TO TAX IT AS FEDERAL INCOME.

>> YES.

>> Eric: SOMEBODY ASLEEP AT THE SWITCH THERE?

>> NO, NO.

>> Eric: SHOULDN'T YOU OR THE LEGISLATURE KNOWN THAT WAS COMING?

>> THEY SHOULD HAVE TAKEN THE DEAL A YEAR BEFORE THIS.

EVERY STATE DID THIS WE WERE TOP FOUR STATES FOR THE SIZE OF OUR CHECKS BUT THERE'S ABOUT 22 STATES GAVE SOME FORM OUT.

THOSE 22 STATES, SOME OF THEM GOT THIS THIS YEAR, WERE ABLE TO GET THE VARIANCE FROM THE FEDERAL GOVERNMENT, GET THE WAIVER FOR THE TAXES ON THIS.

BUT ON MAY 11th, ARBITRARILY, THEY CAME TO IT, THAT WAS THE END OF THE PANDEMIC, DECLARATION, THE EMERGENCY DECLARATION.

SO A ARBITRARILY PICKED EXHIBIT 11th, WE DIDN'T SIGN THE BILL UNTIL THE 24th.

>> Eric: WHY WASN'T IT IT SIGNED ON MAY 10TH?

>> YOU KNOW HOW THE LEGISLATION GOES, IT WAS A LAST-DAY DECISION BUT WE DIDN'T KNOW IT WAS COMING UNTIL THE I COULD AND EVERYTHING, THE LEGISLATURE, MARQUART, OURSELVES, WERE TOLD THESE WERE WAIVED FOR OTHER STATES, THERE WOULD BE NO REASON TO BELIEVE IT WOULD BE DIFFERENT BUT ALL THOSE OTHER STATES CAME BEFORE THE 11th.

NO OTHER STATES HAVE THESE IN THE HOPPER, WE WERE TALKING ABOUT THEM LONGER THAN ANY OTHER STATES.

YOU KNEW THESE THINGS WERE COMING AND I UNDERSTAND YOU HAVE TO PUT A RED LINE IN THERE BUT WHAT ARE YOU FEARFUL OF, IF YOU MOVED IT UNTIL THE 31st FOR US OR GAVE US A SPIRITS VERSUS THE LETTER OF THE LAW, WHAT DIFFERENCE WOULD THAT MAKE, THEY SAID WE HAVE TO STICK TO THIS.

WE'LL SEE, WE'LL CONTINUES TO WORK THEM, ASK THE GO LEGISLATORS TO THINK ABOUT A FIX.

I'M AS FRUSTRATED AS THEY ARE.

I UNDERSTAND DEADLINES HAVING TO BE THERE BUT, AGAIN, I'LL SAYS IF REPUBLICANS ARE BLAMING US ON THIS, THEN TAKE THE CHECKS IN '22.

LEGISLATURE DOES THE WORK IN NORMAL PROMISE, WE SIGNED IT 13 DAYS LATE.

>> Cathy: SPEAKING ABOUT THE NEXT SESSION, YOU WERE TALKING ABOUT IT BEING AN IMPLEMENTATION SESSION?

WHAT DOES THAT MEAN?

>> WEST NEEDS TO START GETTING THINGS GOING, WHERE HE NEED TO STARTS MAKING SURE, LIKE -- >> Cathy: LIKE PAID FAMILY LEAVE?

>> THOSE THINGS ARE GOING ON, WE HAVE THE CHILD TAX CREDIT THAT'S GOINGS, WE NEED TO GET OUT THERE, WE HAVE ALL KINDS OF PUBLIC-PRIVATE PARTNERSHIPS WORKING TO GET THE WORD OUT ON THAT, WE THEY WOULD TO PUT THOSE THINGS INTO PLACE.

WE NEED TO LOOK AND WE'VE IMPLEMENTED SCHOOL MEALS, THEY WERE THERE ON THE FIRST DAY OF SCHOOL READY TO GO, READY TO MAKE HAPPEN AND THEN I STARTED THINKING OF SOME OF THE THINGS WE WERE DOING AROUND AMENDMENT HAIR, ON LEAD PIPE REMOVAL, THOSE TIMES OF THINGS TO START SAYING, LOOK, OUR AGENTS SEEINGS ONLY HAVE SO MUCH TO BE ABLE TO DO, SO MANY PEOPLE TO PROCESS THINGS, LET'S IMPLEMENTS WHAT WE HAVE, LET'S TWEAK WHAT NEEDS TO BE TWEAKED, AND LET'S FOCUS AND PRIORITIZE.

THIS IS BASIC, BASIC BUDGETING AND I TRUST THE LEGISLATURE TO DO THAT.

I THINK SPIRE HORTMAN, LEADER DZIEDZIC ARE FOCUSING ON THAT AND I WOULD HOPE OUR REPUBLICAN FRIENDS WOULD COME BACK BECAUSE I WILL SAY ALL THIS SQUANDERING, A LOT OF THEM SHOWING UMM FOR RIBBON-CUTTINGS WHETHER THEY VOTED FOR IT OR NOT.

THEY TOLD YOU THEY WANT TO ROLL BACK, EVEN THOUGH WE DON'T HAVE A DEFICIT, ROLL BACK MEALS.

I THINK WE CAN COME TO A LOT OF AGREEMENTS ON THIS THESE ARE PROJECTS ACROSS MINNESOTA, DO A BONDING BILL, TWEAK THINGS, IMPLEMENT.

>> Eric: DOES IMPLEMENTATION INCLUDE MAKING SURE THAT MONEY THAT'S DOSE OUT ARRANGED THE STATE TO NONPROFITS THERE ARE SOME ACCOUNTABILITIES AND SOME PERFORMANCE -- FEEDING OUR FUTURE COMES TO MINDS AS ONE THAT GOT AWAY FROM YOU.

>> PEOPLE ARE GOING TO JAIL, RESTITUTION IS BEING MADE.

>> Eric: WHAT ABOUT ACCOUNTABILITY FOR THIS LUNGS OF MILLIONS OF DOLLARS HEADING OUTS?

>> ABSOLUTELY AND THAT'S WHY WE PUT FORWARD AND WERE ABILITY TO MOVE SOME OF THIS TO HAVE MORE -- THE INSPECTOR GENERAL PIECES OF THIS, TO MAKE SURE WE HAD MORE OVERSIGHT, THOSE ARE BEING IMPLEMENTED IN THERE.

A LOT OF THESE FOLKS, WE COUNTS ON MINNESOTA AS ONE OF THE ROBUST NONPROFIT SECTORS THAT PROVIDES FROM HOUSING TO MEALS, I WAS WITH A GROUP STOOD, PROVIDING LAPTOPS IN THE NORTHSIDE ACHIEVEMENT ZONE TO FOLKS.

THOSE ARE ALL THINGS GOING, PRIVATE-PUBLIC MONEY AND WE SHOULD ALWAYS BE THE BEST SWORDS OF THIS, WE HOULD ALWAYS BE PREPARED FOR THAT BUT WE SHOULD KNOW THERE'S ALSO CRIMINALS OUT THERE.

I KNOW THE ATTORNEY GENERAL IS PROSECUTING FOLKS FOR MEDICAID FRAUD THAT THEY CONTINUE TO TRY AND DO THAT.

WE SHOULD HAVE THE RIGHT PIECES IN PLACE, I THINK SOME OF THE CHANGES WE MADE AROUND THE NONPROFIT MONITORING ACCOUNTING, ACCOUNTABILITY, WILL HELP TRY AND STOP SOME OF THESE FOLKS AND IF THEY SHOULD DO IT, WE SHOULD PROSECUTE THEM TO THE FULL EXTENTS OF THE LAW.

WE GOT ANOTHER GUILTY PLEA TODAY.

>> Cathy: I WAS TALKING TO SPEAKER HORTMAN ABOUT THE UPCOMING SESSION AND SHE TALKED ABOUT, AS YOU HAVE SAID, BEING MEASURED IN TERMS OF LOOKING AT NEW SPENDING.

THE U OF M WANTS A LOT OF MONEY FOR THE MEDICAL SCHOOL AND THERE'S THAT WHOLE QUESTION ABOUT WHAT TO DO WITH THE U OF M HEALTH CARE SYSTEM.

FROM WHERE YOU SIT, WHAT SHOULD BE DONE?

>> FIRST, WE'LL HEAR BACK FROM 'EM, I'M INCREDIBLY GRATEFUL, GOVERNORS PAWLENTY AND DAYTON ARE HEADING UMM THAT COMMISSION OVER THERE THAT STARTS TO EXPLORE WHAT THIS LOOKS LIKE, CHALLENGING THEM TO DO THIS KNOWING THAT 70 TO 80% OF OUR PHYSICIANS ARE TRAINED THROUGH THE UNIVERSITIES HEALTH SYSTEM, IT IS A CROWN JEWELL BUT WE ALSO KNOW HEALTH CARE IN GENERAL IS VERY, VERY CHALLENGING SO TRYING TO SOLVE THIS INSIDE A VACUUM, OUTSIDE OF EALTH CARYL IS CHALLENGING SO FOR US, LET'S WAIT FOR THE RECOMMENDATIONS THAT COME OUTS OF THIS.

LET'S TRY AND SEE F WE CAN REWORK A DEAL BETWEEN FAIRVIEW AND THE "U" TO MAKE SURE WE CAN PROVIDE THE SERVICES NECESSARY AND MAKES SURE THIS IS A MOMENT, LIKE SO MANY THINGS, THESE ARE THANKS FOR MICHELLE MOMENTS WE HAD TO TRY TO LOOK AT WHAT THE FUTURE IS GOING TO LOOK LIKE.

MOST OF WHAT WE DID IS ABOUT BUILDING THAT WORKFORCE OF THE FUTURE, THINKING ABOUT INFRASTRUCTURE OF THE FUTURE, I THINK THAT'S WHAT THEY'RE DOING OVER THERE.

>> Eric: TELL US ABOUT THE PROGRESS YOU'RE MAKING ON THE MARIJUANA TSAR, YOU LOST ONE, THE MEDICAL MARIJUANA PERSON HAS LEFT.

2025 IS APPROACHING.

>> A LOT OF THAT WORK IS BEING DONE.

CHEST OAK TO GIVE A HUGE THANK YOU TO HER FOR THE WORK SHE'S DONE, SHE'S GONE ABOVE AND BEYOND.

MATH ZAPPIA CAME OVER AS A REGULATOR FROM COMMERCIAL.

I THINK ONE OF THE THINGS IS SHIFTING ON THIS, I THINK ORIGINALLY AND I GATHERED FROM ALL THE OTHER STATES, THAT THINGS THAT DIDN'T GO RIGHT WITH THEM, THIS ISSUE ABOUT YOU HAVE SOMEBODY IN THE INDUSTRY OR DO YOU HAVE A REGULATOR, I THINK WE ACKNOWLEDGED THAT WAS THE WRONG CHOICE IN THE BEGINNING.

RIGHT NOW WE'RE MOVING TOWARDS THAT REGULATOR.

WHAT'S HAPPENING OVER THERE WITH THE FOLKS THAT ARE DOING THE WORK, GETTING THE THINGS DONE, ALL OF THE MECHANICS OF SETTING UP THAT OFFICE ARE GETTING DONE SO WE'LL GET A DIRECTOR IN THERE AND MAKE IT.

>> Eric: YOU'RE THE NEW PRESIDENT OF THE DEMOCRATIC GOVERNOR'S ASSOCIATION.

IT'S A GREAT PLATFORM TO LOOK FOR YOUR POLITICAL FUTURE.

2026, '28 -- >> I'M IN IT TO HELP THE GOVERNORS, WE HAVE RACES ACROSS THE COUNTRY.

PERSONAL INCOMES ARE HIGHER, WE SEE ALL THESE THINGS THAT SEEMED TO WORK A LITTLE BETTER.

MIZE GOAL IS TO MAKE SURE WASHINGTON STATE, NORTH CAROLINA, POTENTIALLY MONTANA, ABOUT SEVEN OTHER KEEP A DEMOCRATIC GOVERNOR AND I THINK THE REASON I'M IN THIS, MY COLLEAGUES TRUST US IN THIS BUT IT'S THE MINNESOTA PIECE OF THIS THEY RECOGNIZE THAT LIFE WAS MADE BETTER FOR MOST MINNESOTANS, ESPECIALLY IN THE MIDDLE CLASS, BY A LEGISLATIVE SESSION THAT WENT TO THEIR PRIORITIES.

>> Eric: YOU'RE GOING TO HAVE TO BE SO PARTISAN, CAN YOU REACH ACROSS THE AISLE HERE IN MINNESOTA AND STILL HAVURE PARTISAN HAT ON AS I TRY TO ELECTS DEMOCRATIC GOVERNORS?

>> SURE, I SAID I'M NOT GOING TO CERTAINLY INDICATER TO HATE BUT I'LL TALK ABOUT TAXES, WHY WE THINK IT'S A GOOD THING TO DO A CHILD TAX CREDIT, INCREASE SCHOOL ACHIEVEMENT, ALL OF THOSE TYPE THINGS.

WE CAN REACH AND WE CONTINUE TO DO SO.

THAT'S GOING TO BE THE MESSAGE.

IT'S NOT REALLY MY STYLE TO THROW THE BOMBS AT THIS BUT I'M GOING TO BE VERY CLEAR, THESE ARE STATES THAT ARE GOING TO PROTECT REPRODUCTS IRV RIGHTS AND I'LL HELP THOSE FOLKS AND IF THAT'S BEING PARTISAN, I CAN'T DO ANYTHING ABOUT THAT.

>> Eric: WHAT ID YOU SAY, WHAT DID YOU SAY WHEN YOU SAW POLITICO CALL YOU A QUIETFUL POWERFUL GOVERNOR?

[Laughter] >> I DON'T KNOW IF THEY WERE SEARCHING FOR WHAT TO PUT IN THERE.

I THINK MY COLLEAGUES -- I M CERTAINLY PROUD THAT I HAVE A LARGE GROUP OF 23 OTHER GOVERNORS ANGING ROM CALIFORNIA TO MICHIGAN TO DELAWARE, BUT I THINK WHAT THEY SAW HERE IN MINNESOTA IS A LEGISLATURE THAT WE WORKED TOGETHER AND I THINK WHAT THEY WERE GETTING AT IS BUILDING PARTNERSHIPS INSIDE AND OUT, BUILDING BROAD COALITIONS TO SOLVE PROBLEMS AND THEY SAID LET'S TRY THIS ELSEWHERE.

>> Eric: THANKS FOR COMING OVER.

>> Cathy: HAPPY HOLIDAYS.

>> >> HAPPY HALL DAYS TO ALL OF YOU AND I LOVE THE DECORATIONS.

>> Cathy: THANKS, GOVERNOR.

>> Eric: YEAH, THANKS, GOVERNOR.

♪♪ >> CATHY: WE'VE MADE OUR WAY ACROSS THE STUDIO TO FIND OUT WHAT A COUPLE OF LEGISLATORS THINK ABOUT THE BUDGET SITUATION AND MORE.

DFL MAJORITY LEADER JAMIE LONG IS HERE.

THE MINNEAPOLIS REPRESENTATIVE IS SECOND IN COMMAND IN THE HOUSE.

HERE, TOO, IS REPUBLICAN ASSISTANT MINORITY LEADER ZACH DUCKWORTH.

THE SENATOR HAILS FROM LAKEVILLE.

SENATOR DUCKWORTH, WELL, THE BUDGET COMMISSIONER SAYS THAT LAWMAKERS NEED TO BE VERY THOUGHTFUL ABOUT MAKING BUDGET DECISIONS THIS COMING SESSION.

WHAT DO YOU SAY ABOUT THE SITUATION?

>> WELL, I THINK WE HEARD THEM USE WORDS LIKE THOUGHTFUL, WE'VE HEARD THE GOVERNOR AND SPEAKER USE WORDS LIKE BALANCED, MEASURED, CAUTIOUS.

THESE ARE ALL WORDS WE WERE USING EVEN BEFORE THIS FORECAST CAME OUT, PRECEDING THE MOST PREVIOUS SESSION, SO I'M HOPEFUL, I'M GLAD TO HEAR WE'RE ALL ON THE AME PAGE ABOUT MANAGING THE FINANCINGS OF THE STATE MOVING FORWARD.

I JUST HOPE ALL THAT'S BEING SAID IN GOOD FAITH AND AS WE APPROACH THIS COMING SESSION, THAT WE ARE TRULY MEASURED AND CAUTIOUS WITH HOW WE ARE MANAGING THE PEOPLE'S MONEY.

>> Cathy: DO YOU FEEL LIKE YOU MIGHT SAY KIND OF TOLD YOU SO IN SOME OF THIS?

>> I'M TRYING TO BE NICE, I'M NOT TRYING TO BE AN ARMCHAIR QUARTERBACK BUT WE MADE AN ARGUE.

FOR NOT SPENDING ALL THE 19 BILLION SURPLUS.

WE DIDN'T WANTS TO RAISE TAXES ANOTHER 10 BILLION, WE DIDN'T WANTS TO INCREASE SPENDING IN THE STATE BY 30% FOR A REASON.

AND NOW S WE LOOK AT THE FUTURE, DOWN THE ROAD, LOOKING AT THE POTENTIAL OF A $2 BILLION DEFICIT, SOME OF THE REASONING BEHIND THOSE ARGUMENTS ARE COMING TO LIGHT.

>> Eric: HOW DID YOU SHAPE THE '24 SESSION IN THE HOUSE?

>> WE DO TWO-YEAR BUDGETING IN THE LEGISLATURE LAST YEAR WHEREAS THE BIG BUDGETS YEAR AND THE FORECAST SHOWS THAT WE'RE IN FINE SHAPE FOR THIS BIENNIUM.

WE HAVE $2.4 BILLION SURPLUS GOING INTO THIS NEXT BIENNIUM.

WE ALSO LOOK OUT TWO YEARS SO WE'RE LOOKING OUT AT THE NEXT SESSION, WHEN WE WOULD DO THAT NEXT BIENNIAL BUDGET, AND WE'RE SHOWING A SURPLUS FOR THAT BIENNIUM, TOO.

SO WHAT WE'RE LOOKING AT AS THE POTENTIAL WARNING SIGNS IS TWO YEARS BEYOND THAT, SO WE'RE REALLY LOOKING A LONG WAY IN THE FUTURE WHEN WE'RE TRYING TO MAKE SURE THAT WE'RE KEEPING THAT BALANCE THAT WE'RE TALKING ABOUT.

AND I THINK THAT THIS YEAR, WE'RE LIKELY TO BE NOT SPENDING A LOT OF MONEY IN THE LEGISLATURE BUT WE KNOW THAT THESE THINGS FLUCTUATE AND WHEN WE COME BACK IN '25 AND '26, WE COULD AS THE GOVERNOR SAID SEE A MANY BILLIONS OF DOLLARS CHANGE IN TERMS OF WHAT THE FORECAST IS.

SO I THINK THE INVESTMENTS THAT WE MADE FOR MINNESOTANS THIS YEAR ARE GOING TO PAY DIVIDENDS IN TERMS OF BUILDING OUR ECONOMY AND STRENGTHENING THE MIDDLE CLASS.

>> Eric: GROUNDS IS BEING CLEARED AT THE CAPITOL AS WE SPEAK FOR THE NEW STATE OFFICE BUILDING.

YOU'RE IN THE SENATE BUILDING, I GRANT YOU, BUT IS THAT GOING TO BE AN ISSUE, $450 MILLION AND THEN IF YOU ADD IN THE INTEREST ON THE BONDS OVER 20 YEARS, ANOTHER $275 MILLION?

>> SO WE'RE VERY HAPPY WITH OUR SENATE BUILDING BUT THAT PREDATES EVEN MY TIME IN THE LEGISLATURE.

WHAT I'LL SAY IS THE FIRST PRICE TAG I THOUGHT I HEARD IN RELATION TO THE NEW STATE OFFICE BUILDING WAS ABOUT HALF A BILLION AND NOW THE TOTAL FIGURE I HEAR IS $750 MILLING.

>> Eric: IF YOU ADD IN THE INTEREST ON THE BONDS.

>> SO I'M CURIOUS TO SEE WHERE THE ULTIMATE NUMBER LANDS BUT I CAN, YOU KNOW, IN LIGHT OF THE NEWS WE JUST HEARD, AS WE LOOK TO THE FUTURE AND CONSIDERING THE FINANCINGS OF THE STATE, ALSO RYING TO BE VERY MINDFUL OF MINNESOTANS AND THEIR CHECKBOOKS AND WHAT THEY'RE EXPERIENCING AND THE ECONOMY NOT NECESSARILY BEING PHENOMENAL FOR EVERYBODY, FOR THEM TO SEE THE STATE AND SPEND THREE-QUARTERS OF A BILLION DOLLARS ON A BUILDING, I THINK IS GOING TO BE A TOUGH PILL TO SWALLOW FOR SOME FOLKS.

>> Eric: WHAT DO YOU THINK?

>> THE BUILDING WE'RE IN IS FALLING APART, NOT LIKE THE SHINY NEW SENATE OFFICE BUILDING AND WE HAVE A POOR ROOF, WE HAD POOR HVAC, POOR PLUMBING, WE HAVE FOODING, WE HAVE MOLD, WE'VE HAD INJURIES IN THE BUILDING SO IT NEEDS TO BE REPLACED, IT NEEDS TO BE UPDATED AND THE BUILDING THAT WE HAVE IN CONSTRUCTION RIGHT NOW IS GOING TO MAKE SURE THAT WE'RE WELCOMING THE PUBLIC INTO THE STATE.

WE HAVE AN OFFICE BUILDING THAT WAS CONVERTED INTO ONE THAT WAS SERVING THE LEGISLATIVE FUNCTION AND HAS NEVER REALLY FIT.

WE DON'T HAVE ROOM IN OUR COMMITTEES, IT'S NOT A SAFE BUILDING, IT'S NOT ACCESSIBLE FOR THOSE WITH ISABILITIES SO WE'RE GOING TO BE HAVING A BUILDING THAT I THINK MINNESOTANS CAN BE PROUD OF.

>> Cathy: SO SPEAKING OF BUILDING, OF COURSE A BONDING BILL IS -- THIS IS GOING TO BE A BONDING SESSION COMING UP, OBVIOUSLY.

WHAT'S THE NUMBER HAT YOU WOULD BE COMFORTABLE WITH AS THE -- IN THE REPUBLICAN CAUCUS WHEN IT COMES IS TO A BONDING BILL FOR INFRASTRUCTURE?

>> WELL, THAT'S A GREAT QUESTION, I'M NOT GOING TO TIP OUR HAND BUT I APPRECIATE IT.

JUST FOR A LITTLE BIT OF CONTEXT, I WILL LET FOLKS KNOW THAT THE SENATE BUILDING, GRANTED, IT WAS BUILT A FEW YEARS AGO, COST ABOUT 90 MILLION.

DOESN'T HOUSE AS MANY PEOPLE, I'LL GRANT YOU THAT MUCH AND I THINK WHEN YOU LOOK AT -- YOU TALK ABOUT THINGS BEING IN DISREPAIR AND TRYING TO AFFORD BILLS AND HVAC REPAIRS, THIS, THAT, LEAKY ROOFERS, THE OTHER, THE PEOPLE OF MINNESOTA DEAL WITH THAT ALL THE TIME, TOO, SO THEY COULD USE ALL THE EXTRA OF THE HARD-EARNED INCOME THAT SOMETIMES THEY SEE GO AWAY OR DISAPPEAR IN TERMS OF TAXES, BUT TO GET BACK TO YOUR QUESTION -- >> Cathy: YES.

>> AS RELATES TO A BONDING BELL, WE'LL HAVE TO SEE WHAT COMES OUT OF THE HOUSE.

I THINK FOCUSING ON ABSOLUTELY CRITICAL INFRASTRUCTURE IS GOING TO BE KEY.

I DON'T THINK IT'S MAYBE GOING TO BE AS BIG A NUMBER AS FOLKS THOUGHT.

WHETHER OR NOT WE ACTUALLY GET SUPPORT FROM REPUBLICANS FOR IT REMAINS TO BE SEEN.

>> Cathy: AND 880 ILLION, IS THAT THE NUMBER I KEEP HEARING?

>> THAT'S WHAT WAS IN THE FORECAST AND THAT WAS WHAT THEY'RE ASSUMING FOR THE DEBT SERVICE FOR THAT AMOUNT OF MONEY, SO WE HAVE HUGE NEEDS?

OUR STATE IN TERMS OF OUR INFRASTRUCTURE, IN TERMS OF OUR BUILDINGS.

WE SAW MANY YEARS OF GRIDLOCK, UNFORTUNATELY, ON THE BONDING BILL AND WEREN'T ABLE TO GET BILLS PASSED FOR WO YEARS WHEN WE WERE IN DIVIDED GOVERNMENT SO LAST YEAR WE WERE REALLY PLAYING CATCH-UP FOR A LOT OF NEEDS WE'VE SEEN ARRANGED THE STATES.

WE'VE HAD OUR BONDING COMMITTEES TOURING THE STATES AND HEARING FROM LOCAL COMMUNITIES ALL OVER ABOUT THEIR WATER INFRASTRUCTURE NEEDS, THEIR HIGHWAY NEEDS, SO I'M HOPING THAT WE CAN COME TOGETHER AND DO A BONDING BILL.

IT WILL BE IMPORTANT THAT WE HAVE BIPARTISANSHIP AGREEMENT BECAUSE IF WE DON'T, WE'LL HAVE TO DO IT IN CASH AND THAT IS NOT GOING TO BE OPTIMAL FOR OUR LONG-TERM BUDGET SITUATION.

IT'S MUCH BETTER TO DO IT IN THIS BONDING SITUATION.

>> TO PUT THAT IN CONTEXT, THE NUMBER YOU THROUGH OUT, 880 MILLION IS NOT FAR FROM THE 750 MILK POTENTIALLY SPENT ON THE STATE OFFICE BUILDING, SO TO PUT THAT IN PERSPECTIVE, WHEN YOU THINK ABOUT ALL THE INFRASTRUCTURE NEEDS ACROSS THE STATE OF MINNESOTA VERSUS ONE STATE OFFICE BUILDING, I THINK THAT'S PART OF THE CONVERSATION THAT WE FIND DIFFICULT TO GRAPPLE WITH.

>> Eric: WAS SOMEBODY ASLEEP AT THE SWITCH WHEN YOU MISSED THE IRS TAX?

>> IF WE'D KNOWN THERE WAS A DEADLINE -- >> Eric: WHO DROPPED THE BALL?

>> NO, THEY CHANGED THE RULES ON US AFTER THE GAME.

OF COURSE IF WE'D KNOWN THAT WAS GOING TO BE IT IS SITUATION, WE WOULD HAVE GOTTEN IT DONE IN TIME BUT I THINK WE RELIED ON THE IRS TO GET IT DONE AND I'M AS FRUSTRATED AS ANYBODY THAT'S WHERE IT WOUND UP.

>> WE CAN ALWAYS FIND BIPARTISANSHIP AGREEMENT N BLAMING THE IRS.

[Laughter] >> Eric: LET'S ENDS THERE WITH A BIPARTISAN NOTE.

HAPPY HOLIDAYS, FELLAS.

>> Cathy: HAPPY HOLIDAYS.

THANK YOU SO MUCH.

♪♪ SINGING: IT'S YOUR THING, DO WHAT YOU WANNA DO I CAN'T TELL YA WHO TO TALK TO ♪ >> ALMANAC IS A PRODUCTION OF KTCA CHANNEL 2.

>> WHAT DO YOU THINK, I'M JOE SUMMERS AND WELCOME TO ALMANAC.

IF YOU'RE A MINNESOTAN INTERESTED IN WHAT'S GOING ON IN THIS STATE AND IT'S ARTS AND MEDIA, SPORTS AND PUBLIC AFFAIRS, THEN WE HERE AT CHANNEL 2 HOPE THAT YOU WILL BECOME A LOT MORE FAMILIAR WITH THIS THING, "ALMANAC."

BECAUSE EVERY WEEK WE HOPE YOU'LL SPENDS THIS HOUR WITH US, SIT BACK, TRY TO BETTER UNDERSTAND THIS WEEK'S EVENTS, WITH A LITTLE PERSPECTIVE AND MAYBE EVEN A LITTLE BIT F HUMOR.

♪♪ >> ERIC: ON WEDNESDAY, THE ST. PAUL CITY COUNCIL APPROVED MAYOR CARTER'S BUDGET, INCLUDING A PROVISION THAT WOULD ERASE $100 MILLION IN MEDICAL DEBT FOR SOME ST. PAUL RESIDENTS.

FRED MELO IS BACK.

HE COVERS CITY HALL FOR THE ST. PAUL PIONEER PRESS AND HAS BEEN WATCHING THIS BUDGET CLOSELY.

3.7% SPENDING INCREASE, IS THAT THE NUMBER?

>> YEAH, THAT IS.

>> Eric: WASN'T IT 15% HIKE IN JUST A COUPLE YEARS AGO?

>> OH, YEAH.

THAT'S A WHOLE SAGA.

St. PAUL DID THIS THING WHERE IT SAID, HERE'S YOUR PROPERTY TAX, HERE'S A SEPARATE FEE FOR THINGS LIKE STOP SIGNS AND ALLEY REPAIR, WHETHER OR NOT YOU ACTUALLY GOT AN ALLEY REPAIR.

IT'S JUST KIND OF THIS BAKED-IN FEE BASED ON THERE FORMULA.

PEOPLE KEPT SUING, NONPROFITS SUED, EVERYBODY GOT THIS, IT WAS A WAY TO ASSESS THEM AND THE COURT SAID FOLD THAT INTO PROPERTY TAXES.

>> Eric: SO THE MILLION DOLLARS IS GOING TO PAY PENNIES ON THE DOLLAR OR MEDICAL DEBT FOR FOLKS.

IS THAT A LITTLE MISSION CREEP?

>> THIS WAS A 4-3 VOTE, THERE WAS A MEMBER TO PUT THIS ON PAUSE AND REVISITS IT NEXT YEAR, AND THAT FAILED 4-3.

SO ALMOST HALF THE COUNCIL SAID, YES, THAT'S MISSION CREEP.

THE OTHER FOUR MEMBERS SAID, LOOK, THIS IS GOING TO HELP 43,000 OUT OF 300,000 RESIDENTS SO CERTAINLY THIS IS A CITY ISSUE.

PRETTY ALMOST UNIVERSAL, NOT UNIVERSAL BUT CERTAINLY WIDESPREAD.

MEDICAL DEBT IS, I THINK, JOE BIDEN'S TALKING ABOUT IT, THE PRESIDENT OF THE UNITED STATES.

IT AFFECTS OTHER-JUST ABOUT EVERYTHING WE DO.

>> Cathy: THIS HAS BEEN DONE IN OTHER CITIES, LIKE LIKE TOLEDO AND CHICAGO -- >> I THINK COOK COUNTIES, ILL KNOW, DID A BIG INITIATIVE.

IT'S CERTAINLY A GROWING EFFORT.

>> Eric: THE SALES TAX THAT WAS VOTED UPON BY THE VOTERS, WHEN DOES THAT KICK IN?

>> IN APRIL.

>> Eric: THAT WILL BE USED FOR WHAT?

>> ABOUT THREE-FOURTHS OF THAT WILL BE USED FOR ROADS, SO NO SECRETS, WE NEED TO FILL SOME POTHOLES.

IT'S FOR THE ARTERIAL STREETS, AND THE FOURTH WILL BE FOR OUR PARKS PROJECTS.

>> Cathy: DOES THIS BUDGETS INCLUDE RAISES FOR FIREFIGHTERS WHO WERE KIND OF UPSET WITH THE MAYOR, ARE THEY GOING TO GET SOME ONEY?

>> YEAH, THAT WENT TO ARBITRATION SO I THINK THE CITY WAS OFFERING 9%, THE FIREFIGHTERS WANT 15%, THE ARBITRATOR LANDED AT 11 SO IN THE MIDDLE.

AND ALSO SOME MORE POSITIONS WITHIN THE FIRE DEPARTMENTS.

>> Eric: THE CITY GOT, I THINK, 13 MILLION SOMETHING FOR PUBLIC SAFETY.

>> ABSOLUTELY.

>> Eric: HOW IS THAT BEING USED?

>> A VARIETY OF WAYS THE CITY HAS A PROGRAM WITH RAMSEY COUNTY TO REALLY INTERVENE WHEN SOMEONE'S BEEN A VICTIM OF A GUN SHOT.

THEY FIND THAT A LOT OF GUN VIOLENCE IS ACTUALLY RETALIATORY AND WE'RE SEEING IN SOME CASES PEOPLE WHO JUST HAPPEN TO E THERE, INNOCENT BY STANDER, INJURED, KILLED BY RETALIATION STRIKES.

SO IF YOU CAN FIND THAT PERSON WHO'S BEEN INJURED AND SAY, LOOK, RETALIATION IS NOT THE WAY TO DO THIS, ND INTERVENE EARLY ON, MAYBE THAT WILL CUT DOWN ON GUN CRIMES.

>> Cathy: ANYTHING OF COURSE IN BUDGETS IS ALWAYS KIND OF SOME ODDS OWED THINGS THAT POP UP.

ANYTHING THAT YOU SAW IN THERE THAT YOU WENT, WOW, THAT WAS DIFFERENT?

>> YEAH, A COUPLE THINGS.

THE MILLION DOLLARS FOR MEDICAL DEBT RELIEF WAS DIFFERENT.

>> Cathy: A BIG ONE.

>> AND A LOT OF PEOPLE CONFUSED ABOUT IT BUT, NO, I THINK WE WERE SEEING KIND OF A BUDGET THAT REFLECTS A LOT OF PENT-UP DEMAND.

THERE'S ABOUT 80 POSITIONS BEING ADDED ACROSS CITY DEPARTMENTS, A LOT OF THAT'S FUNDED WITH AMERICAN RESCUE PLAN DOLLARS WHICH AREN'T GOING TO LAST FOREVER.

SO THAT WILL CONTINUE THROUGH 2026 AND THEN WE'LL SEE BEYOND THERE.

>> Eric: THE NEW COUNCIL INHERITS THE BUDGET.

WHAT DO THEY SAY?

>> THERE'S SEVEN MEMBERS AND FOUR OF THEM WILL BE BRAND-NEW SO THERE'S GOING TO BE SOME INTERESTING DISCUSSIONS MOVING FORWARD.

>> Eric: DO YOU THINK IT'S -- IS THE NEW COUNCIL MORE PROGRESSIVE OR IS THAT HARD TO SAY?

>> I WOULD SAY IT'S A LITTLE BIT TO THE LEFT OF THE EXISTING COUNCIL, ESPECIALLY ON THE RENTS LIKE RENT CONTROL.

YOU SAW A NUMBER OF PEOPLE WHO WERE NOT HAPPY WITH THE CURRENT COUNCIL OFFERING EXEMPTIONS FOR DEVELOPERS, 20-YEAR EXEMPTIONS FOR NEW CONSTRUCTION AND SOME FOLKS WHO AID, HEY, THERE'S TOO MANY CHANGES GOING ON WITH RENTS CONTROL, LET'S WAIT, GET SOME DATA.

BUT THERE'S GOING TO BE A HEALTHY DISCUSSION OVER THINGS LIKE MUNICIPAL CHILD CARE SUBSIDIES.

THAT'S GOING TO BE ON THE BALLOT A YEAR FROM NOW AND I'M SEEING ALL KINDS OF DIFFERENT REACTIONS TO RAISING PROPERTY TAXES FOR THAT.

>> Eric: YOU'LL BE BUSY.

>> I THINK SO.

>> Cathy: HAPPY HOLIDAYS.

>> HAPPY HOLIDAYS.

>> Cathy: THANK YOU.

>> Eric: HAPPY HOLE DAYS.

♪♪ ♪♪ >> CHRISTMAS IS SUCH A BUSY SEASON, AND YOU DON'T ALWAYS HAVE TIME TO SHOP FOR PRESENTS.

SOMETIMES I WOULD GET SO BUSY, I'D HAVE TO DO MY LAST-MINUTE SHOPPING IN THE CLINIC WHERE I WORK.

I'M NOT PROUD OF THIS.

BUT MEDICAL GIFTS ARE A VERY USEFUL AND HEALTHY CHOICE.

PLUS, THEY'RE EASY TO FIND IF YOU WORK THERE.

AND THE PRICE IS OFTEN VERY REASONABLE.

EVERY CLINIC HAS LOTS OF SMALL GIFT ITEMS JUST LYING AROUND.

LIKE BAND-AIDS.

EVERYONE NEEDS MORE, AND THEY HAVE A THOUSAND USES.

I KNOW SOMEONE WHO MADE A WALLET ENTIRELY OUT OF BAND-AIDS.

COTTON BALLS ARE SUPER USEFUL FOR MAKING HOLIDAY DECORATIONS, OR SOPPING UP VARIOUS FLUIDS AROUND THE HOME.

TONGUE BLADES, THOSE POPSICLE STICK THINGS, ARE A GREAT GIFT ITEM.

YOU CAN USE THEM FOR COOKING, CRAFT PROJECTS, OR RANDOM THROAT CULTURES ON OVERLY TALKATIVE RELATIVES.

AND RUBBER GLOVES.

WHATEVER YOU'RE GOING TO BE DOING OVER THE HOLIDAY, DON'T LEAVE PRINTS.

AND, OF COURSE, MASKS.

DURING PANDEMIC, A THOUGHTFUL GIFT, NOW GOOD FOR AVOIDING TALKING TO PEOPLE AT TARGET.

PLUS, LOTS OF MEDICAL TOOLS, LIKE SCALPELS, IN CASE YOU NEED TO DO A BIOPSY ON THE TURKEY.

AND SYRINGES ARE GREAT FOR BASTING OR SQUIRT FIGHTS WITH THE KIDS.

CASTING SUPPLIES ARE HANDY.

PUTTING A CAST ON SOMEONE'S ARM CAN GET THEM OUT OF SHOVELING FOR 6 TO 8 WEEKS.

BLOOD PRESSURE MACHINES ARE ALWAYS POPULAR.

THAT'S WHY THEY'RE BOLTED TO THE WALL.

AND THE ONE THING YOU WILL FIND IN EVERY HOSPITAL OR CLINIC THIS TIME OF YEAR, PATIENTS.

LOTS AND LOTS OF PATIENTS.

CLINICS ARE SUPER BUSY AROUND THE HOLIDAYS.

THAT MEANS YOU CAN ROUND UP PLENTY OF GUESTS FOR YOUR HOLIDAY PARTY, WHERE YOU CAN ALL GATHER TOGETHER SINGING "WAH HOO POORAY" AND MAKING IT A WONDERFUL HOLIDAY.

SO SHOP ON BY YOUR LOCAL CLINIC.

DON'T BOTHER BRINGING YOUR CREDIT CARD, THEY ALREADY HAVE IT.

HAPPY CHRISTMAS.

♪♪ >> CATHY: EARLIER THIS FALL, MINNESOTA WAS AWARDED A TEAM IN THE NEW PROFESSIONAL WOMEN'S HOCKEY LEAGUE.

THE ORIGINAL SIX TEAMS WILL BEGIN LEAGUE PLAY IN JANUARY, WITH THE MINNESOTA TEAM PLAYING HOME GAMES AT THE XCEL ENERGY CENTER JUST DOWN THE STREET.

BACK WITH AN UPDATE FOR US, RACHEL BLOUNT COVERS SPORTS FOR THE STAR TRIBUNE AND HAS BEEN FOLLOWING WOMEN'S HOCKEY FOR A LONG TIME.

WELCOME BACK.

>> THANK YOU SO MUCH.

>> Cathy: THEY'RE GOING TO PLAY STARTING IN JANUARY BUT, GOSH, WHAT'S THE MINNESOTA TEAM NAME, DO WE HAVE A LOGO?

WHAT'S GOING ON WITH THAT?

>> NO NAME, NO LOGO, THEY HAVE A SCHEDULE, THEY HAVE A ROSTER, WE'RE STILL WAITING FOR BROADCAST INFORMATION SO A LOT OF DETAILS TO BE REVEALED: >> Cathy: ISN'T THAT ODD, THEY'LL START PLAYING IN JANUARY AND THIS IS ALMOST ENDS OF DECEMBER HERE.

>> IT IS ODD BUT ONE OF THE BOARD MEMBERS OF THIS NEW LEAGUE MADE A REALLY INTERESTING STATEMENT LAST MONTH, HE SAID HE'D BEEN ADVISED BY A LOT OF PEOPLE, A LOT OF EXPERTS THAT THEY SHOULD PUT THIS OFF FOR A YEAR, GIVE THEMSELVES TIME O GET ALL THESE DETAILS IN PLACE AND HE SAID, THESE WOMEN HAVE FOUGHT FOR SO LONG TO GET A TOP-CLOSE PROFESSIONAL LEAGUE, HE SIMPLY DIDN'T WANT THEM TO WAIT ANOTHER YEAR.

EMPTED TO GET THIS ROLLING AND FIGURED THAT IT'S OKAY TO START WITHOUT SOME OF THOSE DETAILS IN PLACE.

>> Eric: WHY THE XCEL ENERGY CENTER AS THE HOME BASE?

>> THAT IS WHAT THE TEAM LOBBIED FOR, THAT'S WHAT THEY WANTED.

THE MINNESOTA TEAM IS THE ONLY ONE OF THE SIX THAT WILL BE PLAYING REGULARLY IN AN NHL ARENA.

THE OTHER TEAMS ARE IN COLLEGE ARENAS, MINOR LEAGUE, JUNIOR HOCKEY, BUT THAT IS WHAT THEY WANTED AND IT'S PARTS OF THIS IDEA THAT THIS LEAGUE WILL BE A TRUE TOP-FLIGHT PROFESSIONAL LEAGUE ON PAR WITH ANY PROFESSIONAL LEAGUE IN THE WORLD, THAT THEY WANTED THEM TO BE IN THESE KIND OF VENUES, IF THEY COULD.

>> Cathy: I UNDERSTAND THAT BUT THAT IS A HUGE VENUE.

>> YES, IT IS.

>> Cathy: AND FOLKS -- WON'T IT LOOK A LITTLE EMBARRASSING TO HAVE IT HALF-FILLED OR NOT EVEN THAT SOMETIMES?

>> THAT'S AN ARGUMENT, WE'VE HEARD THE SAME ARGUMENT WITH THE GIRLS STATE HOCKEY TOURNAMENT FOR IGH SCHOOLS, YES, AND THE TWO SIDES OF THAT ARE, YES, I AGREE THAT IT CAN BE LACKING IN ATMOSPHERE AND IT CAN BE NOT A GREAT LOOK FOR THE GAME TO HAVE NOT ENOUGH PEOPLE TO FILL THE PLACE P. ON THE OTHER HAND, THERE'S THE IDEA THAT SHOULDN'T THE GIRLS HAVE THE SAME EXPERIENCE AS THE BOYS?

SHOULDN'T THE WOMEN HAVE THE SAME EXPERIENCE AS THE MEN OF PLAYING IN THE BEST ARENA IN TOWN.

>> Eric: YOU FOLLOWED THE AURORA, THE WOMEN'S SOCCER AND I WONDER WITH THE HOCKEY, IS THERE THE SAME EXPECTATION FOR THAT AURORA STYLE BUY-IN FROM THE FANS?

SEEMED LIKE THAT WAS A REALLY GRASS ROOTS EFFORTS THAT REALLY WORKED.

>> >> VERY MUCH SO AND I THINK WHAT'S GOING TO HAPPEN HERE IS THE GOPHERS' WOMEN'S TEAM HAS AN ESTABLISHED FAN BASE AND THE PREVIOUS WOMEN'S PROFESSIONAL TEAM, THE WHITE CAPS, HAD A REALLY GOOD FAN BASE.

THEY FILLED UP TRIA RINK AND OF COURSE TRIA IS A VERY SMALL VENUE BUT THEY SOLD THAT OUT PRETTY REGULARLY WHEN THEY WERE PLAYING THERE AND SO THEY KNOW THAT THIS IS A GOOD MARKET, ND, IN FACT, THE LEAGUE SAID, MINNESOTA IS THE GEOGRAPHIC OUTLIER HERE.

ALL THE OTHER TEAMS ARE ON THE EAST COAST.

THEY CHOSE MINNESOTA TO BE IN THE ORIGINAL SIX BECAUSE OF THE STRENGTH OF THE MARKET FOR WOMEN'S HOCKEY.

>> Cathy: AND IT IS A REALLY GOOD MARKET FOR WOMEN'S HOCKEY, TRULY.

>> IT IS, ABSOLUTELY.

ONE OF THE FEW MARKETS IN THE COUNTRY WHERE YOU'VE GOT AN ESTABLISHED WOMEN'S HOCKEY PIPELINE AT THE HIGH SCHOOL LEVEL, THE JUNIOR LEVEL AND THE COLLEGE TEAM IS VERY WELL FOLLOWED.

>> Cathy: AND THIS ROSTER, IF YOU LOOK AT THE ROSTER, THE QUALITY OF IT IS PRETTY DARN FINE, REALLY.

I-A TREMENDOUS AND IN FACT THIS IS WHAT WE'RE GOING TO SEE IN THIS LEAGUE.

IF YOU'VE WATCHED WOMEN'S HOCKEY AT THE OLYMPICS, THAT'S THE LEVEL OF PLAY THAT YOU CAN EXPECT HERE.

THESE WILL BE THE BEST PLAYERS IN THE WORLD AND, IN FACT, MANY OF THE PLAYERS YOU SEE AT THE OLYMPICS WILL BE PLAYING IN THIS LEAGUE, SO THERE WILL BE FAMILIAR NAMES FOR OLYMPIC HOCKEY FANS.

>> Eric: OVERSEAS PLAYERS WILL BE ELIGIBLE.

>> ABSOLUTELY, THERE IS A SCHECK PLAYER ON THE MINNESOTA TEAM, I BELIEVE THERE ARE A COUPLE OF FINNS, SO WE'LL SEE EUROPEAN PLAYERS ON THE ROSTERS.

>> Eric: TELL US ABOUT CHARLIE BERGGRAFF, THE NEW COACH.

>> THAT'S SOMEONE NATTY DARWITZ, THE MANAGER HAS KNOWN FOR A LONG TIME, HE'S A WARROAD NATIVE AND NATALIE WANTED HIM AS THE COACH BECAUSE OF HIS RAPPORT WITH PLAYERS, HIS PERSONAL MANNER.

HE'S A VERY UPBEAT, VERY SUPPORTIVE GUY, PLAYERS LOVE PLAYING FOR HIM, HE'S ALL ABOUT LOCKER ROOM CHEMISTRY, HAVING A GREAT TEAM ATMOSPHERE.

HE'S GREAT AT THE X >> Eric: AND Os, AS WELL, BUT I THINK IT'S PRIMARILY THE WAY THAT HE DEALS WITH PLAYERS IS WHY NATALIE WANTED HIM.

>> Eric: >> Cathy: SO STILL NO DECISION ON STREAMING OR TV RIGHTS OR RADIO OR NOTHING, RIGHT?

>> ONE F THE BOARD MEMBERS, STAN CASTON SAID IN A CONFERENCE CALL NEXT MONTHS, ALL THE GAMES WILL BE STREAMED AND HE SAID MOTION OF THEM WILL BE AVAILABLE ON TELEVISION.

THEY HAVE NOT REVEALED YET WHETHER THAT'S GOING TO BE OVER THE AIR TV, WHETHER IT WILL BE CABLE, WHAT IT'S EXACTLY GOING TO BE BUT THEY ARE SAYING THEY HAD DEALS IN THE WORKS TO GET MOST OF THE GAMES ON TV.

>> Eric: I'LL SEE YOU OVER THERE.

I'M I GOING TO CHECK OUT A FEW GAMES.

>> Cathy: THANKS, RACHEL.

GOOD TO SEE YA.

♪♪ ♪ INTO THE GREAT WIDE OPEN, INTO THE SKIES OF BLUE, ♪ OUT IN THE GREAT WIDE OPEN A REBEL WITHOUT A CLUE ♪ >> ERIC: DULUTH IS ONE OF MANY CITIES AROUND THE STATE THAT WILL HAVE A NEW MAYOR AT THE HELM IN EARLY JANUARY.

FORMER STATE SENATOR ROGER REINERT WAS ELECTED MAYOR OF THE NORTHERN MINNESOTA CITY EARLIER THIS FALL, BEATING TWO-TERM INCUMBENT EMILY LARSON BY A WIDE MARGIN.

WELCOME MAYOR-ELECT.

THANKS FOR DRIVING DOWN 1-35 TO JOIN US.

60% MANDATE TO DO WHAT?

>> I THINK WHAT WE SAW IN THE ELECTION, WE SAW IT CONSISTENTLY FOR TEN MONTHS, WE REALLY WANT THE CITY TO DO CITY THINGS GANG, TO REALLY PRIORITIZE THOSE CORE CITY SERVICES, STREETS, UTILITIES, PUBLIC SAFETY, OUR NEIGHBORHOODS ARKS, OUR COMMUNITY CENTERS, THE -- FELT LIKE WE HAD GOTTEN AWAY FROM THAT OR MAYBE IT JUST DIDN'T FEEL LIKE THE TOP PRIORITIES.

>> Eric: DOES THAT MEAN LESS EMPHASIS ON SOCIAL JUSTICE, RACIAL JUSTICE, SOCIAL JUSTICE, CLIMATE CHANGE?

>> IT MEANS MAKING SURE THAT THE CORE CITY SERVICES ARE THE PRIORITY AND WE'RE DELIVERING WELL ON THOSE SO THAT PEOPLE TRUST US TO WORK ON SOME OF THE OTHER THINGS AND I THINK WHAT WE HEARD OVER AND OVER AGAIN THROUGHOUT THE ELECTION WAS JUST THIS ISSUE OF TRUST.

I'M NOT SURE I TRUST WHAT THE CITY IS DOING OR THAT IT'S REFLECTING WHAT I FEEL LIKE I'M PAYING PROPERTY TAXES FOR THE CITY TO DO.

YOU KNOW, AND IN VISITING WITH FOLKS THROUGHOUT THE CAMPAIGN, THAT WAS THE ISSUE THAT EPT COMING UP.

THOSE ARE IMPORTANT ISSUES, O BE SURE, BUT I WANT YOU TO DO THE BASICS FIRST AND DO THEM RELEVANT EASE WELL SO WE CAN PARTNER ON THE OTHER ISSUES.

>> Cathy: LIKE FILLING POTHOLES, DULUTH STREETS ARE NOT GREAT, WE ALL KNOW THAT.

SO WHAT ARE YOU GOING DO ABOUT THAT?

>> WELL, I MEAN, THAT IS THE AREAS THAT WE REALLY DO HAVE TO DIG DOWN IN, RIGHT, SO IT'S GOING TO BE WORKING WITH, FIRST OF ALL, WHERE DO WE HAVE UNEXTENDED ARPA FUNDS THAT WE CAN REPROGRAM TO PUT INTO STREETS, NOT JUST STREETS BUT ALSO UTILITIES, WE HAVE WOODEN SEWER TILE IN SOME PARTS OF THE COMMUNITY SO THOSE ISSUES NEED TO BE ADDRESSED.

IT'S PROGRAMMING OUR LGA, SO THAT WE HAVE BUDGET PRIORITIES, I KNOW ONE OF YOUR EARLIER CONVERSATIONS ABOUT IT IS St. PAUL COUNCIL, LIKE I'LL COME IN WITH SOMEBODY ELSE'S BUDGET O WHERE DO WE HAVE LATITUDE TO MAKE THOSE ADJUSTMENTS AND THEN ENSURING THAT WE'RE STAFFING THOSE CRITICAL AREAS ON THE RONT END WELL.

AND ONE OF THE THINGS I REALLY LEARNED FROM OUR PARTNER, St. LOUIS COUNTY, IS BONDING AGAINST THE HALF-SCENTS SALES TAX THAT WE HAVE JUST FOR STREETS SO WE CAN GET AHEAD OF THAT HILL.

>> Cathy: I'M SORRY, SPEAKING OF BONDING, WHAT MIGHT YOU ASK FOR THIS COMING SESSION?

>> SO, WE'LL BE LOOKING AT -- YOU MAY HAVE SEEN THAT WE'VE GOT SOME REPAIRS TO MAKE WITH ONE OF OUR WATER FACILITIES, SO THAT IS A PRIORITY FOR US, IT'S A LITTLE BIT UP YOUR WAY AS WE MOVE NORTH, OUT OF TOWN.

WE WANT TO MANGE SURE THAT WE'RE BEING A GOOD PARTNER FOR PLACES LIKE OUR AIRPORT WITH THE 148th AND CIRRUS, SO WE NEED A NEW CONTROL TOWER THERE AND ALSO LOOKING AT SOME FUN DEVELOPMENT OPPORTUNITIES, MOVING DOWN THE WATERFRONT SO THE LOT D PROJECT.

>> Eric: MADAM PRESIDENT TO DULUTH RAIL.

>> YES.

>> Eric: WHAT DO YOU THINK?

>> WELL, I'M I A ROPONENT, I HAVE BEEN SINCE I WAS ON THE CITY COUNCIL I THINK FROM A CITY THAT HRIVES ON TRANSPORTATION CONNECTIONS, WE WANT FREEWAY, WE WANT PORT, WE WANT AIRPORT AND WE WANT PASSENGER RAIL.

A CITY COUNSELOR I WAS ON OUR JOINT POWER AUTHORITY, WE HAD A LITTLE SETBACK HERE WITH NOT GETTING THAT FEDS SELECTION BUT WE DID A LOT OF EAVY LIFTING LAST SESSION SO BAD PUN BUT THAT TRAIN IS MOVING DOWN THE RIGHT TRACKS.

>> Eric: THE BRIDGE NEEDS TO BE FIXED, RIGHT?

>> SO THAT WILL CONTINUE TO BE A HIGH FEDERAL PRIORITY FOR US BECAUSE THAT'S GOING TO BE A HEAVY LIFT.

AND OF COURSE BECAUSE IT NOT JUST BONDS THE CONSTITUENT PORTS COMMUNITY BUT IT'S A SYMBOL OF HE TWIN PORTS COMMUNITY SO WE WANT THAT TO CONTINUE TO BE -- >> Eric: I WAS REALLY INTERESTED THAT YOU'RE GOING DO YOUR STATE OF THE CITY ADDRESS OUT OF DENFELD.

>> YOU'VE DONE YOUR HOMEWORK WELL.

>> Eric: NOT AT THE ARENA WHICH I THINK IS MORE TRADITIONAL.

IS THIS A STICK IT TO THE EAST SIDE OF TOWN OR -- >> NO, ERIC, YOU KNOW, YOU CAN'T PUT ME ON TV AND ASK THIS QUESTION.

[Laughter] >> Cathy: BECAUSE HE'S FROM THE EAST SIDE, YOU KNOW.

>> I'M MORE WEST, BUT I DO THINK, YOU KNOW, WE'VE TRADITIONALLY BEEN AT THE DECY AND THAT'S WHERE WE'VE OFTEN DONE THAT SORTS OF THING.

I JUST HAVE A PASSION FOR DENFIELD HIGH SCHOOL, A BEAUTIFUL HIS TORIC SCHOOLING.

>> A BEAUTIFUL AUDITORIUM, GOT TO SAY THAT.

>> ABSOLUTELY, AND I WOULD JUST SAY, YOU KNOW, WHEN YOU LOOK AT THE ELECTORAL MAP, WE WON FROM LAKE SIDE LESTER PARK ALL THE WAY OUT TO FOND DU LAC BUT IT IS A PLACE FOR OUR FOLKS AND I'LL FIND THESE OPPORTUNITIES REPEATEDLY, WE'RE 26 MILES LONG AND WRECK BE CREATURES OF HABIT IN OUR OWN LITTLE PART AND I WANT TO FINDS OPPORTUNITIES THAT BRING PEOPLE TO PARTS OF THE COMMUNITIES THEY MAY NOT BE FAMILIAR WITH.

>> Cathy: WOULD YOU CALL YOUR -- IS T A WEAK MAYOR SYSTEM, A STRONG MAY ORSYSTEM IN DULUTH?

AS A FORMER COUNCIL MEMBER, YOU KNOW THE DRILL.

>> NO, WE ARE A STRONG AND ARGUABLELY THE STRONGEST FORM IN MINNESOTA.

WE'RE A CHARTER CITY SO THAT IS DEFINED IN OUR CHARTER, YOU KNOW.

>> Cathy: SO THE BUCK WILL DEFINITELY STOP WITH YOU.

>> YEAH, YEAH.

YOU KNOW, WE'RE A FULL-TIME AND OF COURSE WE HAVE A COUNCIL OF 9 AGAIN, AS YOUR CONVERSATION EARLIER, WE'VE GOT SIX ELECTIONS THIS CYCLE BECAUSE WE HAD ONE OFF-CYCLE SO WE HAVE THREE NEW, THREE RETURNING AND THREE THAT WERE NOT IN THE ELECTION, SO WE'LL HAVE BOTH A NEW COUNCIL AND A NEW MAYOR COMING INTO OFFICE ON JANUARY SECONDS, AND WHILE WE'RE A STRANGE MAYOR, HAVING BEEN ON THE COUNCIL, I WANT TO MAKE SURE THAT WE HAVE A PRODUCTIVE WORKING RELATIONSHIP.

I REALLY I HAVE A HEART FOR THOSE COUNSELORS AND THAT SERVES.

>> Eric: DO YOU HAVE FRIENDS OR FOES ON THE COUNCIL?

>> I THINK ONE OF THE GREAT WAYS ABOUT HOW WE DID THE CAMPAIGN, WE DIDN'T GET INTO THAT PICKING SIDES.

WE DIDN'T EVEN DO POLITICAL AFILLATION.

WHEN I WAS A COUNSELOR, I ALWAYS SAID, I NEED FIVE VOTES.

WHICHEVER FIVE THEY ARE, I'M HAPPY TO HAVE THEM SO MY GOAL AS MAYOR IS THE SAME AS IT WAS ATTENTION A COUNCILOR, I WANT TO HAVE GOOD RELATIONS NO PLATS WHERE PEOPLE ARE IN THE POLITICAL SPECTRUM.

>> Eric: WHEN YOU'RE DOWN HERE ON A FRIDAY NIGHT, I OPE YOU'LL STOP BY.

GOOD TO SEE YOU.

>> Cathy: GOOD TO SEE YOU.

>> THANKS.

♪♪ SINGING.

NOTHING FROM NOTHING LEAVES NOTHING, YOU GOTTA HAVE SOMETHING IF YOU WANNA BE WITH ME ♪ ♪ NOTHING FROM NOTHING LEAVES NOTHING YOU GOTTA HAVE SOMETHING IF YOU WANNA BE WITH ME ♪♪ ♪♪ >> CATHY: A BUDGET SURPLUS WITH AN ASTERISK, AN IRS RULING THAT LED THE GOVERNOR TO EXPLETIVES, AND A GOVERNOR/LIEUTENANT GOVERNOR DUO RAISING THEIR NATIONAL PROFILE.

PLENTY OF FODDER FOR THIS WEEK'S POLITICAL PANEL.

DFLERS UP FIRST TONIGHT... ABOU AMARA, FORMER LEGISLATIVE STAFFER, NOW A PRACTICING ATTORNEY.

WINTANA MELEKIN, DFL ACTIVIST WHO IS GEARING UP TO SPEND TIME AT THE LEGISLATURE THIS UPCOMING SESSION.

REPUBLICANS ON THE COUCH TONIGHT... BRIAN MCDANIEL IS A FORMER LEGISLATIVE STAFFER TURNED LOBBYIST AND STAND-UP COMEDIAN.

AND LAST BUT NOT LEAST, ANNETTE MEEKS, FORMER CONGRESSIONAL STAFFER, NOW HEAD OF THE FREEDOM FOUNDATION OF MINNESOTA.

WINTANA, AS YOU HEARD THE GOVERNOR TALK, SPEAKER HORTMAN TALKED, ALL THE DFL LEADERS SAY WE'RE GOING TO HAVE TO REIGN IN SPENDING NEXT SESSION, RIGHT?

HOW WILL THAT HAPPEN, DO YOU THINK, ARE THERE STILL A LOT OF FOLKS OUT THERE THAT WANTS AND -- NEED AND WANT THINGS FROM THE LEGISLATURE, RIGHT, IN TERMS OF SPENDING.

HOW WILL THAT HAPPEN WHEN A BUDGETS IS KIND OF TEETERING ON A SHORTFALL?

WHAT DO YOU THINK MIGHT HAPPEN NEXT SESSION?

>> YEAH, I THINK THE FIRST THING TO NOTE IS THAT WE AREN'T TEETERING TOO CLOSE TO A SHORTFALL.

WE ARE TALKING ABOUT A STRUCTURAL IMBALANCE, NOT A DEFICIT, AND WE ARE IN A SITUATION WHERE WE HAVE THE LARGEST AMOUNTS OF RESERVES WE'VE EVER HAD IN STATE HISTORY AND SO WE ARE IN A POSITION TO ONTINUE SPENDING THE WAY THAT WE ARE BUT MAKING SURE THAT WE START -- DON'T START NEW PROJECTS THAT WON'T MAKE SENSE AND I THINK FOLKS ARE VERY COMFORTABLE WITH DOING THAT.

I THINK THE THING THAT WE KNOW THAT DEMOCRATS DO BEST IS BEING GOOD AT GOVERNING AND BEING HONEST AND TRUTHFUL ABOUT WHAT IS AVAILABLE IN FRONT OF US AND I THINK THAT COMMUNITIES WILL UNDERSTAND THAT.

OUR ULTIMATE GOAL IS TO MAKE SURE THAT MINNESOTA IS RUN WELL AND I FEEL SNOW QUAM ABOUT IT.

I THINK WE WILL FOLLOW THE GUIDELINES OF WHAT IS ECONOMICALLY AVAILABLE AND I FEEL CONFIDENT ABOUT THE REQUESTS AND DEMANDS AND WHAT WE'LL GET ACCOMPLISHED NEXT YEAR.

>> Eric: BRIAN, YOU'RE UP THERE, ARE THE PROGRESSIVES GOOD AT SAYING NO TO SPENDING?

>> THANKS, BUDDY THE ELF.

I THINK ALL GOVERNMENT HAS SHOWN THAT THEY HAVE A DIFFICULTY STOPPING EATING WHEN THEY'RE FULL AND I THINK THAT A SMART CAMPAIGNER WOULD SAY, WE SPENT 19-18, 19 BILLION, WE DID A LOT, WE TICKED A LOT OF THINGS OFF OUR AGENDA.

NOW LET'S KIND OF EASE INTO THE ELECTION WITH SOME FISCAL RESPONSIBILITY.

THE ONLY ISSUE IS, IS THAT, YOU KNOW, THE PEOPLE WHO ARE STILL HOW LONG AGREE FOR SPENDING ARE NOT GOING TO BE QUIET AND I THINK THAT THE PROGRESSIVE LEFT HAS NOT SHOWN A WILLINGNESS TO KIND OF PLAY BALL FOR ELECTORAL REASONS.

>> Eric: ABOU.

>> I COULD NOT DISAGREE MORE.

MINNESOTA SCHOOL HOUSE ROCK EDITION.

FIRST YEAR BUDGET YEAR, SECOND YEAR BONDING YEAR.

THE LEADERSHIP UNDERSTANDS THAT, THAT WE'RE NOT GOING TO GO INTO THIS YEAR AND SPENDS BILLIONS AND BILLIONS.

THERE WILL BE A BONDING BILL BUT I THINK MOST DEMOCRATS WANT TO TAKE IT TO THE CAMPAIGN TRAIL AND SAY LOOK AT ALL THE THINGS WE DELIVERED NOR YOU, TAKE IT TO THE ELECTION AND WIN ANOTHER ONE.

>> I WAS AT A HEALTH CONFERENCE YESTERDAY AND I HEARD THE OPPOSITE WHICH WAS A SERIES OF UNMET NEEDS THAT THEY THINK WE NEED TO THROW MORE MONEY AT.

WE RAISED THE BUDGET BY 38%.

WE SPENT THE ENTIRE BUDGET SURPLUS, $18 BILLION, MOST OF IT INCREASING SPENDING ON NEW PROGRAMS AND YOU LOOK AT THIS AND SAY, THAT'S STILL NOT ENOUGH?

THERE'S STILL A QUEST FOR SPENDING AND I DON'T SEE ANY RESTRAINT ON THE LEFT AT ALL.

>> WELL, ABOU SHOULD BE RIGHT, YOU SHOULD BE RIGHT, BUT MOST DFLers DOESN'T TELL THE WHOLE STORY.

IN THE SENATE, WHO ISN'T ON THE BALLOT, THEY DON'T HAVE TO WORRY ABOUT THAT, THERE'S -- IT ONLY TAKES ONE OR TWO TO SAY, NO, THAT'S NOT ENOUGH.

AND CAUSE SOME TROUBLE.

SO I THINK THAT WHAT ABOU IS SAYING SHOULD BE RIGHT, SCHOOL HOUSE ROCK EDITION, WE'LL SEE IF IT IS RIGHT.

>> Eric: IN THE MINNEAPOLIS DFL ORBIT, IS THIS HAMRS VERSUS ISRAEL, IS THAT REALLY A BIG WEDGE ISSUE NOW WITH DEMOCRATS N MINNEAPOLIS?

>> UM, I -- OH, THAT WAS A TOUGH ONE.

YOU GOT ME ON THERE.

I THINK ONE THING THAT WE KNOW IS THAT A MAJORITY OF AMERICANS, MAJORITY OF MINNESOTANS ARE READY FOR A CEASE FIRE.

I THINK I WOULD BE SHOCKED IF MAJORITIES OF THE MINNEAPOLIS CITY COUNCIL WOULDN'T ALSO SUPPORT A POSITION LIKE THAT.

I THINK THAT MOST FOLKS ARE LOOKING FOR PEACE, THEY'RE LOOKING FOR THE INDEPENDENT OF VIOLENCE, AND, YEAH, THERE MIGHT BE SOME DIFFERENCES AND NUANCES BUT OVERALL, I THINK PEOPLE ARE LOOKING FOR AN END TO ALL THE HARM THAT WE'RE SEEING ACROSS THE GLOBE.

>> I'M GOING TO DEFEND SENATOR LATZ AND WHAT HAPPENED TO HIM LAST WEEK SHOULDN'T HAPPEN TO ANY ELECTED OFFICIAL.

THAT WAS BEYOND AWFUL.

HERE WAS A MAN SPEAKING THE TRUTH AND BEING ATTACKED BY 13 OF HIS FELLOW DFLers WHO COULDN'T STAND THE TRUTH AND ALL RON LATZ DID WAS GO OUT THERE N WELL-DOCUMENTED TERMS AND SPEAK THE TRUTH.

SHOULDN'T HAPPEN.

TELLS YOU HOW FAR LEFT THE SENATE DFL AND THE HOUSE DFL IS.

>> DFL ON DFL VIOLENCE IS USUALLY SOMETHING I WOULD LIKE TO GET THE POPCORN FOR, I WON'T SAY THAT BECAUSE THERE IS TWO SERIOUS.

BUT WHAT IT DOES SHOW IS THERE REALLY IS A SERIOUS WEDGE IN THE DFL TWINE THE PROGRESSIVES AND THE MORE MODERATE OR PRO-ISRAEL WING AND I THINK IT IS SOMETHING THAT IS NOT OVER YET.

>> Eric: DOES IT TRANSLATE INTO ELECTORAL PROBLEMS FOR DEMOCRATS?

>> RIGHT NOW IT IS A LEGITIMATE POLICY FIGHT WITHIN THE DEMOCRATIC PARTIES, NO QUESTION ABOUT THAT.

THE ULTIMATE QUESTION IS GOING TO BE FOR DEMOCRATS WHO ARE SAYING JOE BID DEN IS NOT DOING WHAT THEY WANT HIM TO DO ON THIS ISSUE.

THEY WILL HAVE A CHOICE, JOE BIDEN OR DONALD TRUMP AND THAT IS THE CHOICE BEFORE THEM AND I THINK THAT WILL CLEAR MINDS UP AS WE GETS CLOSER TO ELECTION TO COME BACK HOME.

>> Cathy: GETTING BACK TO STATE-SIDE STUFF, WHO WAS NOT PAYING ATTENTION WHEN THE WALZ COLLECTION WERE PASSED?

AND THE IRS HAS TAKEN A BITE OUT OF IT.

WHAT DO YOU THINK, WHERE.

INTANA, WHAT HAPPENED THERE?

>> YOMP THE CLARITY RIGHT NOW TO KNOW WHAT THAT WAS.

I KNOW THIS IS A DEAL THAT WAS CAN YOU TELL US AT THE VERY TAIL ENDS OF SESSION, SOUNDS LIKE THE IRS MADE THE CHANGE.

I SAW IN THE LAST EGMENTS, EVERYONE SAYS EVERYONE LIKES TO BLAME THE IRS, BUT I DON'T HAVE A CLARITY RIGHT NOW BUT I DO HAVE CONFIDENCE THAT GOVERNOR WALZ CAN CONTINUES TO HAVE THE CONVERSATIONS NEEDED TO SEE IF WE CAN GET A CHANGE AND ALSO LET'S TALK ABOUT THE FACT THAT 22 STATES DID THIS, MEANING MANY OTHER STATES DID NOT.

MANY OTHER STATES WERE NOT ABLE TO HAVE A SUCCESSFUL LEGISLATURE AS WE HAVE, NOT ONLY DID PEOPLE GET THOSE CHECKS, THEY ALSO GOT CHILD CARE CREDITS, THEY'RE ALSO GOING TO BE AGE TO HAVE THEIR CHILDREN GET LUNCH AT SCHOOL, THEY'RE ALSO GOING TO BE ABLE TO, YOU KNOW, HAVE ALL KINDS OF OTHER BENEFITS THAT ERE ACQUIRED THROUGH THIS LAST LEGISLATIVE CYCLE SO, YES, IT'S SAD THAT DIDN'T WORK OUT BUT THE MANY, MANY BENEFITS WILL FULFILL THE GAP F WHAT THEY HAVE TO PAY BACK TO THE IRS.

>> Cathy: ANNETTE, YOU'RE SMILING.

>> YOU CAN PUT A SKIRT ON A PIG AND IT'S STILL A PIG.

THIS WAS A MESS FROM THE GETS-GO.

I COULD HAVE TOLD THEM JUST BY READING IRS POLICY STUFF THAT THEY SUBMITTED DURING THE SESSION THAT THIS IS GOING TO BE TAXED, THE IRS WAS PRETTY BOLD ABOUT THAT AND THIS IS JUST ANOTHER PROGRESSIVE TAX ON THE POOREST OF THE POOR.

THE PEOPLE WHO GOT THOSE CHECKS ARE THE LEAST WE'LL PEOPLE IN THE STATE AND THEY'RE GOING TO HAVE TO PAY A TAX ON THIS, JUST ONE MORE PROGRESSIVE TAX LIKE THE GAS TAX, IT IS TRANSPORTATION TAX, OTHER TAXES THAT WILL HURT THE POOREST OF THE POOR IN MINNESOTA AND IT WAS -- THEY WERE JUST ASLEEP AT THE WHEEL.

>> LET'S BE CLEAR, IT'S NOT TAXED UNDER STATE LAW, ONLY TAXED UNDER FEDERAL LAW SO YOUR PROBLEM IS WITH THE FEDERAL GOVERNMENT, NOT WITH STATE LEADERS.

STATE LIEDERS MADE SURE THERE WERE NO TAXES.

>> NO, NO, THE STATE LEADERS WERE ASLEEP AT THE WHEEL, THEY SHOULD HAVE BEEN PAYING ATTENTION TO WHAT THE IRS WAS SAYING.

I SAW ITS.

>> WELL, THE PROBLEM WAS THAT THE STATE LEGISLATURE WAS TOO BUSY HAVING TO FIGHT BACK YEARS OF GRIDLOCK OF INEFFECTS NIFF GOP GOVERNS THEN O.ARE GOVERNANCE AROUND HAD TO PASS AS MUCH POLICY AS THEY COULD IN THIS TIME, I FEEL BAD THEY HAD TO CLEAN UP THE MANY, MANY YEARNINGS OF GOP LEADERSHIP IN OUR STATE AND, YES, PEOPLE WILL HAVE TO PAY TAXES ON THIS BUT THERE ARE SO MANY MORE BENEFITS THAT WERE RECEIVED AT THE LEGISLATURE THIS YEAR THAT CAN FULFILL THAT GAP.

>> IT SHOULD O.SHOULDN'T BE THIS HARD TO GIVE THE PEOPLE THEIR OWN MONEY BACK.

>> THAT'S RIGHT.

>> THAT'S WHAT HAPPENED.

>> Eric: REPUBLICAN STATE CENTRAL COMMITTEE, TOMORROW.

>> YES, INDEED.

TELL US.

>> NOT MUCH.

NOT MUCH IS GOING TO HAPPEN.

THERE'S ALWAYS -- >> CHAIRMAN HANN IS GOING TO SURVIVE.

>> HE'S A VERY GOOD CHAIRMAN, A OOD AND ETHICAL CHAIRMAN WHO INHERITED A DOGGONE MESS.

>> Eric: YOU DIDN'T SAY WHETHER HE WILL SURVIVE OR NOT.

>> OH, HE WILL, HE WILL, I AGOOD ETHICAL LEADER WHO DOESN'T DESERVE WHAT'S HAPPENED TO HIM IN THE LAST COUPLE WEEKS.

HE'S JUST GOT -- THERE ARE SOME TROUBLE-MAKERS WITHIN OUR PARTY THAT BELIEVE YOU GO TO CONVENTIONS AND OTHER THINGS TO FIGHT WITH YOURSELF AND IF WE WANT TO CONTINUES DOWN THAT PATH, WE CAN BUT I CAN GUARANTEE, WE WON'T WIN ANOTHER STATEWIDE ELECTION WITH THAT POLICY.

>> HE MAY SURVIVE BUT THE REPUBLICAN PARTY'S BANK ACCOUNT WON'T.

THEY CANNOT RAISE MONEY, THE INFRASTRUCTURE IS A DISASTER, DEMOCRATS ARE WINNING UP AND DOWN IT IS BALLOTS SO WHETHER HE WINS OR NOT IS IRRELEVANT.

THE FUNDS MEANT TALIS OF THE MINNESOTA REPUBLICAN PARTY ARE BROKEN.

>> Cathy: WOW.

SHOULD WE ENDS IT THERE?

[Laughter] I DON'T EVEN KNOW -- >> WHEN WAS YOUR LAST REPUBLICAN CONVENTION, ABOU?

>> Eric: JULIE MORRISON GOING TO BE THE NEXT COUNSELINGWOMAN FROM THE THIRD DISTRICT?

>> I THINK SO.

I KNOW BOTH CANDIDATES, WE HAVE AN EMBARRASSMENTS OF REFERENCE IN THAT AREA, KELLY MORRISON IS A DOCTOR AND SHE BRINGS IN A LOT.

>> CONGRESS IS NOT GOINGS TO SOLVE ABORTION, GOING TO BE SOLVED STATE BY STATE, SHE'S NOT THE RIGHT CANDIDATE FOR THAT STRICT, SHE'S GOING TO HAVE A HECK OF A RACE.

THE ONLY RACE THAT WILL BE MORE COMPETITIVE IS IN THE SECONDS DISTRICT OF MINNESOTA.

>> Eric: WE'RE DONE.

>> Cathy: HAPPY HOLIDAYS.

>> CATHY: WE'VE RUN A LITTLE LONG TONIGHT.

WE'LL HAVE A NEW HISTORY QUESTION FOR YOU NEXT WEEK.

WE HAVE JUST ENOUGH TIME LEFT FOR SOME SHOW-ENDING MUSIC.

TWENTY YEARS AGO THIS WEEK, PETER OSTROUSHKO STOPPED BY STUDIO B AND PLAYED THIS ORIGINAL HOLIDAY TUNE FOR US, INSPIRED BY A TRIP HE HAD RECENTLY TAKEN TO IRELAND.

TAKE A LISTEN, AND WE'LL SEE YOU BACK HERE NEXT WEEK.

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