♪ ♪ >> JOINING US NOW IN THE HOUSE GALLERY WE HAVE LEADERS, WE HAVE DEMOCRAT JAMIE LONG AND REPUBLICAN HARRY NISKA.

WELL, GENTLEMEN, HOW CLOSE ARE WE?

WHO WANTS TO PEG HOW CLOSE WE ARE TO THAT GLOBAL DEAL?

>> WELL, WE'RE PRETTY CLOSE, WE'RE WORKING HARD, WE'RE HOPING OBVIOUSLY THE CONSTITUTIONAL DEADLINE TO GET DONE WITH OUR REGULAR SESSION IS MONDAY AND WE'RE STILL TRYING TO WORK AS HARD AS WE CAN TO GET HERE.

WE'VE OBVIOUSLY HAD SOME STOPS AND STARTS AT THE BEGINNING OF SESSION, THE FEBRUARY FORECAST DIDN'T HAPPEN UNTIL MARCH, WE LOST 23 DAYS AT THE BEGINNING OF SESSION WHEN DEMOCRATS DIDN'T SHOW UP.

BUT AND WE HAVE 100 REPUBLICAN LEGISLATORS AND 100 DEMOCRAT LEGISLATORS IF YOU COUNT LEGISLATORS WHO AREN'T UNDER FULLNY DIME.

WE'VE GOT A LOT OF WORK TO DO BUT IT'S A CHALLENGE AND WE'RE WORKING HARD TO GET IT DONE.

>> THERE'S A LOT N THERE.

I'VE SEEN REPUBLICAN ADS SAYING DEMOCRATS ARE GOING TO CREATE A GOVERNMENT SHUTDOWN.

>> WELL, WE'RE AS LEADER NISKA SAID WORKING LOSE TO RESPECTFULLY TO GET A DEAL.

WE SAW THE REPUBLICANS TRY TO ILLEGALLY SEIZE POWER AT THE BEGINNING OF SESSION UNTIL THE SUPREME COURT TOLD THEM THEY COULDN'T.

WE HAD EARLY AGREEMENTS ON TARGETS, WE'VE BEEN WORKING DILIGENTLY TO GET TO THIS POINT.

THE HOLDUP HAS EEN THAT THE REPUBLICANS HAVE BEEN INSISTING ON POLICY DEMANDS LIKE ROLLING BACK PAID FAMILY MEDICAL LEAVE AND OTHER PROGRAMS THAT BENEFIT MINNESOTANS AND HOLDING UP THE BUDGET OVER THAT.

IF WE WERE JUST TALKING NUMBERS THIS WOULD HAVE BEEN A LOT FASTER TO SOLVE.

>> AND I BET YOU SEE A DIFFERENT HOLDUP FROM THE OTHER SIDE.

>> OBVIOUSLY WE HAD A DEMOCRAT TRIFECTA LAST SESSION THAT HAD AN $18 BILLION SURPLUS, TURNED THAT INTO COMING DOWN THE PIKE, -- -- >> WHAT ABOUT THE CURRENT BUDGET, WHAT DO YOU SEE AS THE HOLDOUT?

IS IS >> WE HAVE TO BRING GOVERNMENT UNDER CONTROL AND IT'S GOING TO REQUIRE CUTS TO GOVERNMENT OBVIOUSLY IN ORDER TO BRING THAT UNDER CONTROL SO EIT'S NOT JUST RAISING MORE TAXES ON MINNESOTANS BUT WE'RE ALSO NEEDING TO HAVE A BUSINESS ENVIRONMENT, A BUSINESS CLIMATE THAT'S GOING TO ALLOW MINNESOTA TO GROW AND THRIVE IN THE FUTURE.

THAT'S THE REAL WAY THAT WE THRIVE BOTH FROM A FISCAL PERSPECTIVE AND JUST MAKING MINNESOTA HAVE THE FUTURE THAT IT CAN HAVE.

AND SO WE NEED TO DO ALL OF THOSE HINGS AS MUCH AS WE CAN.

>> ND OBSERVE CFSS AND WE WILL HEAR FROM SOME BUSINESS LEADERS WHO ARE FORMER LEADERS DOWN HERE IN JUST A MINUTE, THEY'RE IN THE WINGS.

LET'S GET BACK TO THAT, YOU MENTIONED POLICY BEING A PROBLEM BUT YOU ALSO NEED NUMBERS.

HOW HARD AND WHERE ARE YOU AT BETWEEN POLICY, ARE THERE ANY CONFERENCE COMMITTEES READY TO GO ON POLICY?

OR IS IT TOO CONNECTED TO THE BUDGET NUMBERS AND TARGETS?

>> WELL, THE G.O.P.

AND DEMOCRATS CAME UP WITH A PRETTY GOOD I THINK SET OF NUMBERS AGREEMENTS IN THE HOUSE, THAT ACTUALLY WASN'T THE HARD PART.

RIGHT, THE HARD PART HAS BEEN ALL OF THESE PROVISIONS THAT ARE UNRELATED TO THE BUDGET WHERE THE G.O.P.

HAS BEEN TRYING TO LEVERAGE THE BUDGET AND LET'S NOT FORGET THIS IS PROBABLY ONLY ROUND ONE BECAUSE TODAY IN THE U.S. CONGRESS THEY PASSED OUT OF COMMITTEE BUDGET CUTS FOR MEDICAID, WHICH WOULD KICK 8.6 MILLION AMERICANS OFF OF MEDICAID AND WE KNOW THAT THAT MEDICAID COVERS ONE IN FOUR MINNESOTANS SO WE'RE GOING TO BE FACING A HUGE BUDGET GAP IF THAT'S WHAT HAPPENS.

>> DO YOU EXPECT TO BE BACK NO MATTER HAT TO DEAL WITH THE FEDERAL IMPACT ON THE BUDGET LATER THIS SUMMER?

>> NOT NECESSARILY, IF WE GET OUR BUDGET UNDER CONTROL IN MINNESOTA AND IF WE DON'T DO THINGS LIKE CONTINUE TO FUND HEALTH CARE FOR ILLEGAL IMMIGRANTS WHICH MIGHT RESULT IN LOSING MORE FEDERAL FUNDS FOR MINNESOTA.

IF WE HAVE THAT CUSHION IN OUR BUDGET WE'RE NOT GOING TO NEED TO WORRY AS MUCH ABOUT WHAT THE FEDERAL GOVERNMENT NEEDS TO DO.

THEY'VE GOT A HUGE BUDGET PROBLEM THEMSELVES AND MOST MINNESOTANS, MOST AMERICANS UNDERSTAND THE FEDERAL BUDGET DOES NEED TO GET UNDER CONTROL AS WELL.

>> DO YOU THINK DEMOCRATS ARE GOING TO BUDGE ON HAT ISSUE ABOUT IMMIGRANTS, UNDOCUMENTED HAVING HEALTH CARE?

THERE HAVE BEEN A LOT OF EVENTS, FAITH COMMUNITIES BEEN UP A COUPLE OF TIMES THIS WEEK SAYING PRESERVE IT.

THERE'S A LOT OF PRESSURE ISN'T IT THERE HAD?

>> THIS HAS BEEN PRETTY UGLY POLITICS, AND I THINK REPUBLICANS DON'T WANT PEOPLE DYING IN OUR STATE BECAUSE OF COVERAGE.

WHEN ARE WE COVERING PEOPLE, WHEN IT'S MOST EXPENSIVE AT THE EMERGENCY ROOM OR PREVENTATIVE CARE AT THE BEGINNING, AND THAT'S WHAT YOU HEARD FROM THE CATHOLIC BISHOPS, LUTHERAN BISHOPS TODAY.

ING ITS LESS EXPENSIVE FOR THE ENTIRE SYSTEM IF WE'RE PROVIDING HEALTH CARE UP FRONT.

ALL WE'RE SEEING IS REALLY UGLY DIVISIVE POLITICS ON TRYING TO MAKE THIS ISSUE ONE OF THE BUDGET POINTS.

>> DOES THE FAITH MEMBERS HAVE -- ARE MEMBERS LISTENING TO THEM?

>> OF COURSE WE CARE ABOUT THE HUMANITY OF EVERYBODY BUT WE ALSO NEED TO BE CONCERNED ABOUT THE FISCAL IRRESPONSIBLY OF THE WAY DEMOCRATS STRUCTURED THIS LAST YEAR.

EVEN CALIFORNIA AND ILLINOIS WHO STARTED DOWN A SIMILAR ROAD ARE REALIZING THEY CAN'T FISCALLY AFFORD IT.

THE COST IN OUR STATE IS EXPLODING, OVER THREE TIMES THE ENROLLMENT THAT WERE USED TO PROJECT THE FISCAL COST OF THIS IN THE FIRST PLACE.

SO WE NEED TO AS OUR, WE'RE DEALING WITH THIS HUGE FISCAL CHALLENGE WE NEED TO BE REALISTIC ABOUT THE WAY THAT THE DEMOCRATS STRUCTURED IT TWO YEARS AGO AND FIX THAT.

>> SOUNDS LIKE THERE'S A LOT THAT'S STILL FROM THE PAST THAT'S RAISING UP THIS YEAR.

>> WELL, THE FIRST THREE MONTHS WAS WITHIN THE PROJECTED COST OF THE PROGRAM.

IF WE'RE TALKING ABOUT REDUCING COSTS, HOSPITALS AND INSURERS WANT THIS BECAUSE THEY KNOW THIS BRINGS DOWN HEALTH CARE COSTS.

THIS IS ABOUT DEMONIZING A GROUP OF PEOPLE TO TRY TO SCORE POLITICAL POINTS AND THAT IS FRANKLY REALLY DISGUSTING.

>> WHAT ABOUT THE IDEA THAT HOSPITALS AND INSURANCE COMPANIES AND THEY HAVE MORE SKIN AND THEY PUT FEES OR TAXES?

>> WELL, WE NEED TO BE MINDFUL ABOUT THE UNCOMPENSATED CARE ISSUE OBVIOUSLY.

WE NEED TO MAKE SURE THAT THE COSTS OF GOVERNMENT ARE COMMENSURATE WITH THE, YOU KNOW, THE RIGHT PEOPLE ARE PAYING THOSE COSTS CERTAINLY.

BUT THE COST OF MINNESOTA GOVERNMENT, TAXES ON MINNESOTANS HAVE GONE UP ASTRONOMICALLY IN THE LAST FEW YEARS AND WE WILL TO BE REALLY CAREFUL BEFORE WE PILE MORE TAXES ON.

MINNESOTANS.

THAT'S ONE THING THAT REPUBLICANS HAVE BEEN REALLY STRONG ON.

>> WE'VE TALKED HEALTH CARE, WE HEAR THAT'S ONE OF THE ISSUES THAT'S A PROBLEM BEHIND CLOSED DOORS.

OTHER IS PAID FAMILY LEAVE AND WHETHER TO DELAY IT, BACK OFF ON IT.

WHERE ARE YOU AT ON THAT?

ARE DEMOCRATS WILLING TO GIVE ON THAT PART OF THE TRIFECTA?

>> WELL, THIS IS AN INCREDIBLY POPULAR PROGRAM THAT'S GOING TO BE ROLLING OUT ON JANUARY 1ST, IT'S GOING TO COVER FOLKS WHEN THEY'RE TAKING LEAVE TO TAKE CARE OF A NEWBORN, WHEN THEY HAVE A SICK FAMILY MEMBER.

EVERY OTHER DEVELOPED COUNTRY IN THE WORLD DOES THIS.

IT'S SOMETHING THAT MINNESOTANS WANT AND SO, NO, WE ARE STANDING FIRM ON TRYING TO HELP GET ACCESS TO PAID LEAVE FOR MINNESOTANS.

>> THE SENATE HAD SOME BIPARTISAN SUPPORT KIND OF SLOWING THIS DOWN, DOES THAT HELP YOU IN YOUR NEGOTIATIONS?

>> I THINK THE PAYROLL TAXES ARE GOING TO HIT MINNESOTA WORKERS AND REGULATORY COSTS ON MINNESOTA BUSINESSES, PEOPLE DON'T REALIZE HOW DIFFICULT THIS ACTUALLY IS GOING TO BE TO ROLL OUT, HOW COSTLY TO ROLL OUT AND I THINK IT IS IMPORTANT WE LOOK AT WAYS TO FIX THAT PROGRAM.

DEMOCRATS CREATED A HUGE NEW STATE BUREAUCRACY AND THAT'S GOING TO HAVE SOME COSTS AND CONCERNS AS IT OLLS OUT.

FRANKLY JUST DON'T THINK DEMOCRATS HAVE BEEN REALISTIC ABOUT THE CHALLENGES THAT'S GOING TO FACE, GOING TO POSE FOR THE STATE OF MINNESOTA AND THE WAYS THAT WE NEED TO THINK ABOUT FIXING THEM.

>> WHAT ABOUT UNEMPLOYMENT BENEFITS?

THAT CAME UP TODAY ESPECIALLY UP ON THE RANGE.

THE RANGE USED TO BE DEMOCRATS, USED TO HAVE A MIX OF DEMOCRATS AND REPUBLICANS, NOW IT'S BECOME MORE REPUBLICANS, HAS THIS BECOME A PARTISAN ISSUE?

>> THERE WAS A PARTISAN ATTEMPT TO TRY TO MOVE THIS BILL WHEN THE SENATE HADN'T TAKEN UP THE INDIVIDUAL BILL, ALREADY MOVING IN THE BUDGET BILL SO THEY WANTED TO TRY TO FORCE A VOTE ON IT.

THE BROADER CONCERN WE'VE HAD ON UNEMPLOYMENT INSURANCE IS REPUBLICANS HAVE TRIED TO ROLL IT BACK FOR PEOPLE WHO HAVE IT RIGHT NOW WHO ARE HOURLY SCHOOL WORKERS LIKE BUS DRIVERS, PARAPROFESSIONALS WHO NEED THIS TIME IN THE SUMMER TO BE ABLE TO COVER THEIR IN BETWEEN SCHOOL TIME.

AND THIS IS SOMETHING THAT WE PROVIDE TO EVERYONE ELSE INCLUDING MINERS WHEN THEY HAVE DOWN TIME WHEN THEY'RE NOT WORKING.

>> IS THIS BEING DISCUSSED BEHIND CLOSED DOORS?

COULD THIS BE ROLLED INTO A GLOBAL POLICY AND NUMBERS DEAL?

>> WELL, OF COURSE IT'S BEING DISCUSSED BEHIND CLOSED DOORS AND IT'S UNFORTUNATE THAT IT WAS A PARTISAN VOTE ON THE FLOOR TODAY.

I WOULD THINK THAT THIS WAS A DEMOCRAT BILL, IT SHOULD BE, WE SHOULD BE ABLE TO PASS IT OFF THE HOUSE FLOOR WITH 34-0, IT'S UNFORTUNATE DEMOCRATS IN THE SENATE HAVEN'T MOVED IT FORWARD.

BUT TO COMPARE MINERS WHO LOST THEIR JOBS BECAUSE OF A ROLLBACK TO SEASONAL SCHOOL WORKERS WHO KNOW THAT EVERY SUMMER THEY'RE GOING TO HAVE TIME OFF IS FRANKLY INSULTING TO THOSE FAMILIES ON THE IRON RANGE.

>> LAST QUESTION BECAUSE WE'RE ALMOST OUT OF TIME.

TIMELINES, SPECIAL SESSION WE HEARD THE MAJORITY LEADER FROM THE SENATE SAY "INEVITABLE.." IS IT INEVITABLE?

ARE YOU WILLING TO CONCEDE THAT?

>> YES, I AM.

>> FOR A CLEAN FINISH IS IT SPECIAL SESSION?

>> I DON'T THINK IT HAS TO BE INEVITABLE BUT IT IS VERY DIFFICULT TO SEE HOW WE WOULD GET IT ALL DONE IN TIME.

HOPEFULLY THE, I KNOW THE WORK IS CONTINUING, HOPEFULLY WE WILL GET TO A PLACE WHERE WE CAN WRAP THINGS UP AS QUICKLY AS POSSIBLE, BUT WHETHER WE CAN GET THAT ALL DONE BY MONDAY NIGHT, THAT'S GOING TO BE TOUGH.

>> AND MAYBE COME BACK QUICKLY, DO YOU THINK THAT MODEL WOULD, YOU NOW, GET A DEAL IN THE NEXT COUPLE DAYS AND FINISH UP SPECIAL NEXT WEEK?

>> I THINK WE'VE SEEN THAT HAPPEN BEFORE WHERE FOLKS WILL COME BACK AND DO A ONE OR TWO-DAY SPECIAL SESSION TO