>> 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