>> Eric: FURTHER EVIDENCE THAT THINGS ARE MOVING AT A RECORD PACE AT THE STATE CAPITOL, LEADERS CAME UP WITH BUDGET SPENDING TARGETS EARLY, REALLY EARLY, WITH NEARLY HALF OF THE SESSION TO GO.

DOES THIS FOR TEND A SMOOTH END TO THE SESSION?

LET'S DEBATE THAT AND THER THINGS WITH THE HELP OF FOUR FORMER LAWMAKERS LL FROM THE STATE SENATE.

AMY COP, REPUBLICAN FORMER SENATE MAJORITY LEADER.

AMY IS NOW A LOBBYIST, FRITZ KNAAK IS HERE, ONE TIME ASSISTANT MINORITY LEADER IN THE SENATE.

SUSAN KENT, A DEMOCRAT, SHE WAS THE SENATE MINORITY LEADER AT ONE POINT.

JEFF HAYDEN ROUNDS OUT THE GROUP.

DEMOCRAT AMONG HIS TITLES IN THE SENATE, DEPUTY MAJORITY LEADER.

ALSO A LOBBYIST.

MADAM LEADER COP, ON THE TRANSGENDER BILL THIS MORNING ONLY ONE REPUBLICAN VOTED NO.

THAT WAS A FORMER CAUCUS LEADER.

UNDER WHAT CIRCUMSTANCES DO YOU LET FOLKS WALK OR VOTE -- WHAT MAKES THAT DETERMINATION?

>> WELL, IT DEPENDS ON THE BILL.

GAMING IS NEVER GOING TO BE A FULL PARTY VOTE.

THERE ARE CERTAIN MEMBERS ON EITHER IDE THAT ARE FUNDAMENTALLY OPPOSE TODAY GAMING IN ANY FORM.

SO THAT'S A NATURAL WHERE PEOPLE ARE JUST GOING TO HOLD THE LINE.

I FEEL LIKE ON HE BUDGET BILLS, PARTICULARLY WHEN LIKE THEY'RE TOUGH VOTES, WE HAD BIG DEFICIT, RIGHT, I NEEDED MY MEMBERS, WE HAD 37 SO WE COULD HAVE LOST A COUPLE, BUT FOR CAUCUS ORALE, I NEEDED EVERYONE TO BE ON THE SAME PAGE.

WE ALL HAD 20 AGREE THAT WE HATE A LITTLE BIT OF EVERYTHING IN ALL THESE BILLS BUT WE STILL HAVE TO TAKE THAT VOTE TOGETHER.

SO REALLY THE BILL DEPENDS.

>> Eric: HOW HARD IS THAT WHEN IT'S 34-33 DEMOCRATS WITH A VOTE?

WHEN YOU CAN'T -- NOBODY CAN -- EVERYBODY'S GOT TAKE ONE FOR THE TEAM, RIGHT?

>> THAT'S EXACTLY RIGHT.

AND I JUST STAY FOCUSED ON WHY ARE WE HERE, WHAT ARE OUR PRIORITIES, WHAT IS THE BIG PICTURE WE'RE TRYING TO ACCOMPLISH.

YOU KNOW, MOST OF THE PEOPLE WHO ARE IN THE TOUGH SEATS AND FOR WHOM ANY OF THESE WILL BE TOUGHER VOTES, THEY'VE ALREADY HAD THE EXPERIENCE OF HAVING REALLY NASTY THINGS SAID ABOUT THEM IN THEIR MAILBOXES, MANY OF WHICH FOR SOME OF US WE'VE NEVER HAD A RECORD SO IT'S SORT OF FUN TO WATCH SOME STUFF COME THROUGH.

YOU STAY FOCUSED ON THAT AND SAY WE'RE GOING TO HANG TOGETHER AS BEST AS POSSIBLE AND NEGOTIATE ALONG THE WAY.

>> Cathy: WOULD YOU LIKE TO MAKE ANY COMMENT ON THIS?

>> WELL, I WAS PRIMARILY A BOMB THROWER WHEN I WAS THERE.

[ LAUGHTER ] THERE'S A WHOLE DIFFERENT PERSPECTIVE ON THIS IF YOU'RE IN THE MINORITY AND YOU'RE TRYING TO KEEP PEOPLE FOCUSED ON ISSUES THAT YOU THINK ARE IMPORTANT.

EVERY ONCE IN A WHILE YOU WILL SEE A SITUATION WHERE THE MINORITY HAS THAT SAME CONVERSATION AND YOU TAKE IT FOR THE TEAM BECAUSE THE LAST THING YOU WANT TO DO IS CREATE AN ENVIRONMENT WHERE ONE OF YOU -- ALL OF A SUDDEN YOU'VE GAIT BIPARTISAN BILL FOR ELECTION PURPOSES IS RARELY A GOOD THING.

SO.

>> SO I WAS A BOMB THROWER AND PEACE MAKER.

>> Eric: YOU DID BOTH.

>> I WAS ON BOTH SIDES OF THOSE THINGS.

I THINK WHEN YOU'RE IN THE MAJORITY AND SUSAN AND I SERVED TOGETHER IN THIS, TOM BAKK USED TO SAY HE DOESN'T BRING A BILL TO THE FLOOR UNLESS IT HAS 34 VOTES.

I THINK YOU REALLY DO YOUR WORK BEHIND THE SCENES TO MET MEMBERS WHERE THEY NEED TO GO BEFORE YOU BRING THE BILL FORWARD.

>> Eric: I WANT TO TRY ONE OTHER THING ON THE SPENDING TARGETS WHERE EACH GETS A TARGET OF SPENDING YOU CAN'T -- BUT IS THERE AN APPEALS PROCESS?

DOES SOME SENATOR COME UP TO YOU AND SAY, MADAM LEADER, WE NEED MORE MONEY?

ARE THESE SET IN STONE OR NOT?

>> WELL, I HAD THE ADVANTAGE OF HAVING A $6 BILLION DEFICIT SO THERE WAS NO MORE MONEY, IT'S JUST ABOUT HOW MUCH YOU WANT CUT AND IF YOU GET SASSY, YOU KNOW.

BUT, YEAH, I THINK THIS CASE THERE'S A LOT OF BEHIND THE SCENES MANEUVERING THAT'S PROBABLY GOING TO GO INTO THESE, I HINK.

BUT THEN ONCE YOU START MOVING THAT TARGET FOR SOMEBODY YOU'RE GOING TO HAVE TO MOVE IT FOR SOMEBODY ELSE, IT'S NOT AN INFINITE AMOUNT OF MONEY.

THERE'S NOT, WELL, THIS YEAR EVEN WITH 18 BILLION THERE'S NOT MONEY NECESSARILY STASHED AWAY THAT YOU AREN'T TAKING FROM ANOTHER CHAIR.

IF YOU MOVE THE TARGET IN HIGHER ED WHERE ARE YOU GOING TO TAKE IT FROM, AG?

ARE YOU GOING TO TAKE IT FROM THE ENVIRONMENT?

YOU HAVE TO MAKE A DECISION AND NOW YOU'VE MADE ANOTHER PERSON UNHAPPY >> , YEAH, THERE'S A LITTLE MONEY TUCKED AWAY FOR SAY PAID FAMILY LEAVE.

$688 MILLION -- >> WALZ CHECKS TOO, YOU GOT TO EXPECT THAT'S GOING TO GO UP AND DOWN.

-- >> THERE'S FEDERAL MONEY FOR REIMBURSEMENT, THERE'S ABOUT $500 MILLION TUCKED AWAY, PAID ATTENTION TO THAT BUDGET A LITTLE BIT THERE.

THAT'S NOT TO SAY ONCE YOU DO IT, I DO AGREE WITH AMY ONCE YOU DO IT FOR SOMEBODY YOU GOT TO DO IT FOR EVERYBODY.

I THINK SUSAN KNOWS THERE'S OPPORTUNITY FOR YOU TO BE ABLE TO FIND A LITTLE EXTRA MONEY OR FOR INSTANCE IN THE HEALTH CARE BUDGET THERE MAY BE SOME TWEAKS THAT YOU CAN MAKE TO FIND MONEY IN TERMS OF SCHEDULES AND THE WAY THAT YOU SPEND MONEY FOR CERTAIN FOLKS.

SO I THINK HERE'S AN OPPORTUNITY.

>> THE HARD PART THOUGH IS THERE'S NOT A LOT OF ONGOING MONEY, 5 AND A HALF BILLION SO REALLY OVER THE GRAND SCHEME OF THINGS IS NOT THAT MUCH.

AND THAT'S GOING TO REALLY FORCE PEOPLE TO PAY ATTENTION AND ADD EVERYTHING UP RIGHT.

AND, YOU KNOW, IT'S -- KNOWING THESE LEADERS THEY'VE LEFT THEMSELVES A LITTLE WIGGLE ROOM SO THEY CAN HAVE CONVERSATIONS WITH PEOPLE.

>> Cathy: THAT PAID LEAVE PROGRAM IS PRETTY EXPENSIVE.

WHERE IS IT GOING DO YOU THINK?

>> I THINK WE'RE GONNA DO IT, I REALLY DO.

THERE'S GOING TO BE A STARTUP AND IT'S JUMP STARTING IT, ULTIMATELY T'S BASICALLY SELF-FUNDING BECAUSE YOU PAY INTO IT, EMPLOYERS AND EMPLOYEES PAY INTO IT AND THAT BECOMES THE POOL TO PAY OUT OF IT.

AND I THINK I'VE ALWAYS SAID WHEN I CARRIED THE BILL DURING COVID, THAT PROGRAM GOT STRESS TESTED IN A BUNCH OF STATES AND IT DID GREAT.

AND I THINK IT'S GOING TO GO WELL.

>> Eric: DO YOUR SMALL BUSINESS, DOES IT GET AFFECTED BY THIS?

>> EVERYBODY GETS AFFECTED, IT'S A TAX INCREASE, I MEAN, YOU KNOW, AND THAT'S ONE OF THE PROBLEMS IN TERMS OF THE OPTICS OF THIS IS YOU'VE GOT ALL THAT MONEY AND YOU'RE INCREASING TAXES AND IT MAY WELL BE, YOU KNOW, IT MAY WELL BE THAT THIS IS ALL FOR GOOD AND, YOU KNOW, THE ARGUMENTS ARE ALL THERE BUT IT'S GOING TO BE EXPENSIVE AND THE PEOPLE THAT ARE GOING TO PAY FOR IT ARE PEOPLE THAT ARE WORKING.

>> Cathy: YOU MENTION TAX INCREASES, THERE IS THIS SALES TAX, PROPOSED SALES TAX IN THE METRO TO PAY FOR TRANSIT, RIGHT?

AND DID YOU HEAR ABOUT THE $75 PER PACKAGE DELIVERY FEE?

DID YOU HEAR THAT BILL?

>> THERE'S A BILL FOR THAT.

>> Cathy: YEAH, PEOPLE WOULD PAY $75 PER PACKAGE TO HAVE IT DELIVERED TO YOUR DOOR.

BUT -- 75 CENTS PER PACKAGE TO HAVE IT DELIVERED TO YOUR DOOR.

>> THOSE ARE IDEAS, RIGHT?

WE WANT TO PUT IDEAS ON THE TABLE, WE WANT TO SEE HAT PEOPLE ARE GOING TO SAY ABOUT IT.

I THINK ONE OF THE THINGS THAT HAPPENED OVER THE LAST SIX YEARS ESPECIALLY IN THE SENATE WE DIDN'T HEAR THOSE THINGS, THAT DOESN'T NECESSARILY MEAN THEY'RE GOING TO HAPPEN BUT YOU WANT TO TRY TO FIGURE OUT WHAT IS THE RIGHT THING TO DO AND HOW DO YOU KIND OF DEAL WITH ONGOING REVENUE ISSUES.

I DON'T THINK IF THEY PROPOSE IT IT WILL BECOME LAW BUT I DO THINK IT'S A GOOD IDEA TO TALK ABOUT IT.

>> Eric: BONDING.

IT'S DEMOCRATS' TERM TO HAVE A LITTLE SHARP ELBOWS.

CAN YOU EXPLAIN WHAT'S GOING ON THERE YOU TWO VETERANS OF BONDING SESSIONS PAST?

IS >> SURE, SO BONDING OR CAPITAL INVESTMENT IS MONEY THAT'S PUT ON ROADS, INFRASTRUCTURE OF REGIONAL OR STATEWIDE IMPORTANCE.

AND IT IS THE ONLY BILL ON THE FLOOR THAT YOU NEED A SUPERMAJORITY FOR.

SO IT REQUIRES BY JUST DEFINITION HERE IT'S GOING TO REQUIRE REPUBLICAN VOTES IN BOTH HOUSES.

SO FROM A REPUBLICAN STANDPOINT IT'S REALLY KIND OF YOUR ONLY VOTE HERE YOU HAVE LEVERAGE.

>> Eric: BUT THEY'RE TYING IT TO TAX CUTS BEFORE THEY VOTE.

>> IN THE SENATE THEY SAID WE WOULD LIKE TO VOTE FOR TAX RELIEF BEFORE WE VOTE FOR ALL THE SPENDING OR AS E VOTE FOR ALL THE SPENDING.

THEY DID NOT PASS IN THE SENATE.

THEY'RE CALLING A SMALLER BONDING BILL WHICH IS 1.5 IN GO BONDS AND 1.7 MILLION IN CASH DID PASS THE HOUSE AND ACTUALLY PASSED IN A VERY BIPARTISAN FASHION.

>> Eric: 20 REPUBLICANS.

>> RIGHT.

THOSE BILLS ARE I THINK SOME OF THE MOST INTERESTING AS THOSE CHAIRS THEY HAVE TO WORK ACROSS THE AISLE.

THEY HAVE A PARTNER IN THEIR LEAD AND THEY MUST WORK ACROSS THE AISLE AND MAKING HAT HAPPEN IS DELICATE AND A LITTLE BIT TRICKY AND YOU HAVE TO BE QUITE THE POLITICIAN I THINK TO BE A BONDING CHAIR.

>> Eric: BUT AFTER THE SENATE DIDN'T PASS A BONDING BILL, SENATOR KENT, THE BONDING COMMITTEE CONVENED IN THE SENATE AND A BUNCH OF REPUBLICAN PROJECTS GOT TOSSED OUT AND THEN THE DEMOCRATS ARE SAYING WE'LL JUST DO ALL CASH, WE WON'T NEED THE SUPERMAJORITY.

>> AND THAT IS AN OPTION CERTAINLY BECAUSE WE HAVE A LOT OF ONE-TIME MONEY AND THERE'S NOTHING BETTER THAN TO SPEND THAT ON THESE KINDS OF INFRASTRUCTURE PROJECTS.

I THINK IT'S INTERESTING BECAUSE SO THAT VERY BIPARTISAN VOTE IN THE HOUSE, FOR THE SENATE REPUBLICANS TO SAY, NOPE, WE'RE NOT GOING TO DO IT, WE'RE GOING TO LINK IT TO SOMETHING ELSE AND THEY COULD DO THAT IN ANOTHER WAY.

THEY COULD GET AN AGREEMENT ON SOME TAX BILLS -- >> WELL, THEY -- >> AHEAD OF TIME IF THEY WANTED TO AND THEN PASS THE BONDING.

>> WELL, THEY HAD AN AGREEMENT.

THE ELEPHANT IN THE ROOM, NO PUN INTENDED WAS THAT THEY HAD AN AGREEMENT LAST YEAR TO TIE THOSE VERY THINGS TOGETHER AND THEY WALKED AWAY FROM IT.

AND THEY COME BACK THIS YEAR AND SAY WE WANT A REDO AND THE DEMOCRATS ARE IKE WAIT A MINUTE LET'S GET THIS DONE BECAUSE LAST YEAR WHEN WE PUT THIS ALL TOGETHER YOU GUYS DECIDED TO WALK AWAY.

I THINK THAT THEY'RE GOING TO GET A BILL DONE AND THERE'S ABOUT ABOUT 2 BILLION THAT THEY CAN DO KIND OF THEMSELVES AND FIGURE OUT THOSE PROJECTS.

BUT I DO THINK THAT DEMOCRATS ARE KIND OF SAYING, LISTEN, WE GOT TRUST ISSUES WITH YOU AND WE WANT TO START TO SEE THINGS GET DONE AND WE'RE NOT GOING TO KIND OF WAIT UNTIL THE END AND RUN ACROSS THE TRAIN TRACKS AND DO ALL THE STUFF WE'VE DONE BEFORE.

MY MESSAGE TO REPUBLICANS IS IT'S A REALLY GOOD BILL, ASK CHAIR URDAHL, THE ONE THEY JUST KIND OF REJECTED AND THEN LET'S WORK ON ISSUES S WE MOVE FORWARD.

>> I WAS A MEMBER OF REAL SMALL MINORITY, MY RESPONSE TO THAT IS POUND SAND.

>> THEN YOU DON'T GET YOUR PROJECTS, I MEAN, YOU KNOW.

>> IF HAT'S THE WAY IT WORKS THEN THAT'S THE WAY IT WORKS.

THE VICTORY IS, AND THERE IS ONE IN THERE, WE'RE NOT PAYING TENS OR HUNDREDS OF MILLIONS OF DOLLARS OVER A LONG TIME FOR INTEREST ON PROJECTS WE HAVE TO DEAL WITH NOW.

IF YOU WANT TO BE PARTISAN ABOUT IT, YOU SAY, OKAY, NONE OF THOSE APOLOGIZE THAT INVOLVE REPUBLICAN DISTRICTS ARE GOING TO BE TAKEN CARE OF IT.

FAIR ENOUGH.

EVERYBODY HERE KNOWS WHAT GOES AROUND COMES AROUND AND AT SOME POINT THERE WILL BE PAYBACK.

>> FIRST THEY GOT A BIPARTISAN BILL ON THE ABLE.

THAT'S WHAT -- THEY HAD ONE ON THE TABLE THAT THEY VOTED AGAINST.

>> THEY HAVE ONE ON THE TABLE THEY VOTED AGAINST FOR EXACTLY THE REASONS I DESCRIBED TO YOU.

I THINK THERE'S A -- >> I FUNDAMENTALLY DISAGREE.

>> WELL, IF YOU WANT TO SEE IT AS SOMETHING YOU CAN ADD TO THE POOL OF $17 BILLION, IN OTHER WORDS REALLY WE'RE TALKING 19 BILLION BECAUSE WE GOT THAT BILL TOO THEN WHAT YOU'RE SAYING MAKES SENSE, OTHERWISE IF YOU'RE REALLY CONCERNED ABOUT KEEPING THOSE COSTS, INTEREST COSTS GOING UP WHY ARE WE SPENDING MONEY ON INTEREST WHEN WE'VE GOT MONEY IN THE BANK >> Eric: COUPLE OF GOOD FLOOR SPEECHES HERE.

>> Cathy: WHERE IS RECREATIONAL MARIJUANA?

>> NOT UP IN SMOKE YET BUT GETTING CLOSE.

>> Cathy: I WAS WONDERING ABOUT THAT.

>> -- IT'S A LONG WAYS TO GO.

>> FIRST OF ALL I THINK THAT THE EXPECTATIONS ON THIS AS WAS WITH MANY IN THE TRIFECTA WERE OVERBLOWN, IT'S A REALLY BIG BILL AND WE MAY HAVE ACCIDENTLY LEGALIZED LAST YEAR SORT OF KIND OF BUT THERE'S A LOT THAT GOES INTO THIS BILL, LOCAL GOVERNMENTS, LAW ENFORCEMENT, CITY GOVERNMENTS, COUNTY GOVERNMENTS.

THERE WAS A RUSH AT THE BEGINNING, THE BILL NEEDS 12 OR 14 COMMITTEE HEARINGS IN THE HOUSE ALONE AND THAT IN A YEAR WHEN YOU'VE GOT A MASSIVE BUDGET TO DISCUSS, BONDING BILLS, PAID FAMILY MEDICAL LEAVING ALL THE DEBATE AROUND ABORTION AND -- >> LEGALIZED SPORTS BETTING.

>> LEGALIZED SPORTS BETTING THAT WAS I THINK TOO AMBITIOUS AND SHOULD HAVE TEMPERED EXPECTATIONS THAT IT MIGHT TAKE TWO YEARS.

>> Eric: WITH 30 SECONDS LEFT IS GOVERNOR WALZ RAISING HAD I NATIONAL VISIBILITY FOR SOME PURPOSE?

>> I AM SURE THERE IS SOME PURPOSE BUT I THINK IT'S IMPORTANT TO SEE THE CONTRAST TO SEE WHAT'S GOING ON IN SOME CONSERVATIVE STATES WHERE THEY'RE BANNING BOOKS AND DEMONIZING CHILDREN.

>> AND PEOPLE OF COLOR AND EVERYONE ELSE.

>> RUNNING FOR SECRETARY OF AGRICULTURE.

>> Eric: