>> 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