♪♪ >> AS WE SAID, LEGISLATIVE LEADERS AND THE GOVERNOR ARE PROBABLY BEHIND CLOSED OORS RIGHT NOW IN ALMOST NONSTOP BUDGET NEGOTIATIONS SO WE HAVE SOME ABLE LIEUTENANTS.

SENATOR JORDAN RASMUSSON FROM THE REPUBLICAN CAUCUS AND FROM THE D.F.L.

CAUCUS, SENATOR SCOTT DIBBLE.

WELL, FIRST OF ALL, GENTLEMEN, WHAT DO WE KNOW OF HOW THINGS ARE GOING?

IS IT GETTING CLOSE BEHIND THAT DOOR?

ANYONE?

>> CONVERSATIONS CONTINUE BETWEEN THE LEGISLATIVE LEADERS AND THE GOVERNOR.

I THINK THERE ARE SOME BIG STICKING POINTS OUT THERE.

I THINK ONE OF THE CHALLENGES WE'RE SEEING IS THAT DEMOCRATS ARE STILL LOOKING TO INCREASE TAXES.

IF WE LOOK AT THE SENATE DEMOCRATS' HEALTH BILL THERE'S MORE THAN $3 BILLION IN TAX INCREASES IN THAT BILL, AND REPUBLICANS HAVE SAID WE'RE NOT INTERESTED IN NEW TAXES THIS SESSION.

>> IS THAT A STICKING POINT FROM WHAT YOU HEAR AS WELL SOME >> I THINK THE STICKING POINT IS THAT WE'RE TRYING TO BUDGET RESPONSIBLY.

YOU KNOW, I JUST HAVE TO BE CLEAR, LEVEL-SET SO THE SENATE D.F.L.

IS GETTING ITS WORK DONE, WE PASSED 15 BILLS AS I MENTIONED EARLIER.

>> MORE THAN THE HOUSE, NOT THAT THERE'S EVER A COMPETITION.

>> AND WE'RE LOOKING TO BUDGET RESPONSIBLY.

>> BUT STILL HAS TAX INCREASES WHICH REPUBLICANS ARE NOT GONNA DO AND YOU NEED REPUBLICANS IN THE HOUSE, RIGHT?

>> WELL, YOU KNOW, WE'LL SEE.

>> OKAY.

THEY SAY THEY WON'T.

>> IF WE'RE JUST GOING TO DO CUTS OF COURSE WHAT ARE WE GOING TO CUT, ARE WE GOING TO CUT ESSENTIAL SERVICES, ARE WITH EGOING TO CUT FROM EDUCATION AND DISABILITY CARE AND SENIORS AND THE LIKE?

WE JUST ROLLED OUT A TAX BILL TODAY THAT IS EXTREMELY RESPONSIBLE IN THAT THE TAX NIECE IN THERE IS ON SOCIAL MEDIA COMPANIES THAT DON'T PAY A SINGLE PENNY FROM THE BILLIONS THEY RAISE ON MINNESOTANS' DATA.

AND SO.

>> I'VE HEARD PRIVATELY SOME REPUBLICANS KIND OF LIKE THAT IDEA.

WILL ANY ADMIT IT?

>> I THINK THE REAL QUESTION IS WILL IT ACTUALLY WORK?

NO STATE IN THE COUNTRY HAS BEEN ABLE TO IMPLEMENT A KIND OF TAX LIKE THIS, AND SO WE'VE SEEN THIS BEFORE WHERE THESE DIFFERENT NEW TAX IDEAS WILL GET FLOATED BUT IN REALITY.

>> COULD IT BE A FEE?

COULD IT BE A SERVICE CHARGE?

>> A FEE IS A TAX FROM MY POINT OF VIEW.

>> AROUND IT LOGISTICALLY?

>> AGAIN I THINK WE JUST SEE THIS 6 BILLION DEFICIT IS CREATING HARD CHOICES AND I JUST THINK MINNESOTANS FEEL LIKE THEY'RE PAYING ENOUGH TAXES, AND THAT WE NEED TO PUT THEIR FAMILY BUDGETS AHEAD OF THE STATE GOVERNMENT.

>> I'LL JUST SAY DEMOCRATS HAVE PUT FAMILY BUDGETS FIRST, WE ARE BUILDING ON THE SUCCESS OF THE PAST TWO YEARS.

WE INVESTED IN KEEPING COSTS LOW FOR PEOPLE ACROSS THE BOARD, CHILD TAX CREDITS, $3 BILLION IN TAX CUTS, LOWERING PROPERTY TAXES, 75% OF ALL MINNESOTANS ON SOCIAL SECURITY DON'T PAY THIS TAXES AND WE INVESTED IN WHAT PEOPLE CARE ABOUT, EDUCATION, MAKING SURE WE'RE TAKING CARE OF PEOPLE AND SENIOR CARE.

>> LET'S JUMP IN ON EDUCATION BECAUSE THERE WAS BIG NEWS ON THAT TODAY THAT GRADUATION RATES HIT A NEW HIGH.

>> WORLD RECORD GRADUATION IN MINNESOTA.

>> -- IN EDUCATION?

CAN REPUBLICANS HAVE A VICTORY ON THAT TOO?

>> I THINK WE HAVE TO LOOK AT THE RESULTS THAT WE'RE SEEING AND UNFORTUNATELY WE'RE SEEING OVER THE PAST FEW YEARS TEST SCORES AND PROFICIENCY ARE GOING DOWN.

>> YEAH, BECAUSE THOSE NUMBERS WERE DOWN -- >> BUT THEY'RE ACTUALLY GRADUATING WITH THE SKILLS THEY NEED TO BE SUCCESSFUL IN THE WORKFORCE, AND SO, YOU KNOW, THERE'S BEEN BIPARTISAN EFFORTS ON TRYING TO IMPROVE LITERACY WITHIN OUR SCHOOLS AND I THINK THERE'S SOME MORE WORK THAT NEEDS TO BE DONE.

>> AND ACHIEVEMENT GAP, THAT APPEARS TO BE NARROWING, THAT'S BEEN A REALLY HARD ONE TO GET AFTER.

>> WELL, THIS IS THE TRUTH OF THE MATTER.

WE EXPERIENCED CALAMITOUS CUTS UNDER TIM PAWLENTY AND BEEN GETTING BACK FROM THAT LOSS.

WE PUT $5 BILLION INTO PUBLIC EDUCATION TWO YEARS AND I THINK IT'S PA PAYING OFF.

>> LUNCHES AND BREAKFAST, COULD THAT BE HELPING NOW?

COULD THAT BE WHAT WE'RE SEEING IS IT!

I THINK ONE OF THE CHALLENGES I HEAR FROM THE SCHOOL DISTRICTS I REPRESENT IS A LOT OF THEM ARE FACING REALLY CHALLENGING FINANCIAL PICTURES LOOK FORWARD BECAUSE OF MANY OF THE UNFUNDED MANDATES PUT ON THEM OVER THE LAST TWO YEARS.

WE'RE SEEING TEACHERS GETTING LAID OFF.

OUR FOCUS IS HOW CAN WE GET DOLLARS FOCUSED ON THE CLASSROOM AND AWAY FROM UNFUNDED MANDATES.

>> LET'S PIVOT IF WE CAN TO TRANSPORTATION.

>> WE PUT A RECORD AMOUNT OF MONEY INTO SPECIAL EDUCATION.

>> TRANSPORTATION, YOU'RE CHAIR.

>> YES, I LOVE IT, I'M FOR IT.

>> YOU DON'T HAVE TO SHARE A GAVEL WITH TWO CHAIRS IN THE HOUSE BECAUSE YOU HAVE CONFERENCE COMMITTEE TOMORROW.

WHAT'S THAT PICTURE LOOKING LIKE?

>> I THINK WE'RE GOING TO PROBABLY -- WE HAVE A REALLY GOOD WORKING RELATIONSHIP AND, YOU KNOW, I THINK WE'RE GOING TO PROBABLY GET THIS THING WRAPPED UP PRETTY QUICKLY.

I THINK WE ALL SUPPORT, YOU KNOW, ACTUALLY THE TRANSPORTATION FUNDS ARE IN PRETTY HEALTHY SHAPE, THAT'S THE HIGHWAY USER TAX DISTRIBUTION FUND THAT SUPPORTS OUR TRUNK IGHWAYS, HOLD THE LINE ON -- >> NOT AS MUCH FEDERAL IMPACT IN YOUR BUDGET AREA.

>> NOT QUITE AS MUCH, YEAH.

>> KAY.

AND SO WE'RE, I THINK, YOU KNOW, WE HAVE SOME OLICY DIFFERENCES AND MAYBE SOME DIFFERENT PRIORITIES AROUND WHAT TO INVEST IN AND HOW O INVEST BUT I THINK WE CAN WORK OUT OUR DIFFERENCES PRETTY QUICKLY.

>> ALL YOUR YEARS HERE YOU'VE NEVER HAD A THREE-PERSON GAVEL SHARING SITUATION.

>> NEVER, YEAH, SO THAT WILL BE INTERESTING TO SEE.

>> IT'S A BRAVE NEW WORLD.

>> AND THEY'RE GOING TO HAVE AN EVEN NUMBER OF CONFEREES SO THEY'RE GOING TO HAVE TO FIGURE OUT HOW TO GET TO CONSENSUS, WE HAVE THE ODD NUMBER OF CONFEREES.

>> YOU GOT TO SHARE A GAVEL EARLIER IN SESSION.

HOUSE IS NOW TIED.

DO YOU THINK THAT HELPED SET A DIFFERENT TONE THIS YEAR?

>> I THINK IT DID.

IT GAVE AN OPPORTUNITY TO BRING FORWARD SOME BIPARTISAN PROPOSALS EARLY ON IN SESSION AND WE'RE ACTUALLY SEEING SOME OF THE FRUIT FROM THAT WORK.

EARLIER THIS WEEK WE HAD A BIPARTISAN BILL ON THE SENATE FLOOR TO MAKE REFORMS TO EARNED SICK AND SAFE TIME.

SO THAT THOSE CONVERSATIONS REALLY GOT SPURRED EARLY IN SESSION WHEN WE HAD TO WORK TOGETHER.

>> HUMAN SERVICES, HOUSE AND NAT BILLS HAVE NOW BOTH PASSED.

THAT'S A TOUGH BUDGET AREA WITH A LOT OF FEDERAL UNKNOWNS AND FRAUD'S A CONCERN, TALK TO ME ABOUT THAT.

>> WE ARE EXTREMELY CONCERNED ABOUT THE CHAOS THAT DONALD TRUMP IS CREATING AT THE NATIONAL LEVEL, TRUMP TARIFFS, NATIONAL RECESSION THAT'S LOOMING AND THEY'RE TALKING ABOUT $800 BILLION IN CUTS TO MEDICAID WHICH WILL WIPE OUT A SIXTH OF MINNESOTA'S BUDGET, MEANS PEOPLE WILL LOSE HEALTH CARE, HOSPITALS, CLINICS, NURSING HOMES ALL OVER THE STATE OF MINNESOTA.

I DON'T EVEN KNOW HOW TO THINK OR TALK ABOUT THAT.

>> IT'S THE HARDEST PART OF THE BUDGET, ISN'T IT, HUMAN SERVICES?

>> WE SAW THE SENATE DEMOCRATS' HUMAN SERVICES BILL TODAY HAS MORE THAN A BILLION DOLLARS BILLION DOLLARS INCUTS FOR NURS.

AND THAT IS PART OF THE SPENDING SPREE AND AND THIS DEFICIT.

TAXPAYER FUNDED HEALTH CARE FOR ILLEGAL IMMIGRANTS INTO THESE MEDICAID PROGRAMS WHERE WE'D GET A FEDERAL MATCH AND WE COULD ACTUALLY ADDRESS HUNDREDS OF MILLIONS OF CUTS BY REPRIORITIZING THOSE DOLLARS.

>> I HAVE TO.

SA SENATOR RASMUSSON IS NOT ACTUALLY PAINTING THE PICTURE THAT'S ACCURATE.

THE FACT IS IT WASN'T A SPENDING SPREE, WE PUT $8 BILLION ON THE BOTTOM LINE.

>> INTO RESERVES.

>> THERE WAS NO SPENDING SPREE, WE SPENT RESPONSIBLY.

>> SURPLUS IS GONE.

>> IT WAS $12 MILLION ONE-TIME THAT WE SPENT ON THINGS PEOPLE VALUE AND THIS ISSUE OF IMMIGRANT HEALTH CARE.

>> VERY QUICK, YES OR NO, -- >> SAVES MONEY.

>> -- THERE GOING TO BE A DEAL TO AVOID SHUTDOWN?

>> HOPE SPRINGS ETERNAL, I'M OPTIMISTIC, I WOULDN'T BE IN THIS BUSINESS IF I WASN'T.

>> I THINK MOVING SOME OF THESE