AND THINGS THAT PEOPLE DEPEND ON AND RELY ON IN THEIR EVERYDAY LIVES.

>> ERIC: HERE TO TALK BUDGET TARGETS AND MORE, A TRIO OF CAPITOL REPORTERS.

YOU JUST SAW HER ON THE SCREEN AT THE CAPITOL.

NOW LIVE IN THE STUDIO.

ALMANAC'S OWN MARY LAHAMMER JOINS US.

DANA FERGUSON IS PART OF THE POLITICAL TEAM AT MPR NEWS.

AND ROUNDING OUT THE GROUP, KSTP-TV'S POLITICAL REPORTER AND AT ISSUE HOST, TOM HAUSER.

DEADLINE DAY, BUT ANYTHING THAT THE LEADERSHIP WANTS TO KEEP ALIVE AS FAR AS THE LEGISLATION WILL STAY ALIVE?

>> YEAH YOU KNOW HOW IT IS.

IT'S A DEADLINE.

IF YOU DON'T PASS SOMETHING, IT'S DEAD.

NOTHING IS EVER DEAD.

BECAUSE YOU CAN BRING IT UP ON THE FLOOR.

IF YOU GET ENOUGH VOTES.

YOU CAN AMEND IT TO SOMETHING ELSE.

BUT AT LEAST IT GIVES THEM SOME REASON TO HAVE THEIR WORK DONE AT SOME POINT IN TIME.

>> Cathy: IS THERE ANYTHING THAT COULD REALLY BE IN TROUBLE?

>> I THINK THE DISCUSSION WITH THE TWO DAVES, THE CO-CHAIRS THERE, YOU KNOW, THAT COMMITTEE HAS A LOT OF TOUGH STUFF.

WE WERE JUST TALKING PAID FAMILY LEAVE.

THERE'S A LOT OF DESIRE TO REPEAL IT, BUT THAT'S NOT GOING TO HAPPEN, BUT DELAY IT.

BUT THE ONE THING I GUESS I DO WANT TO GIVE THE LEGISLATURE A LITTLE CREDIT FOR.

YOU JUST SAW IN THE PIECE THERE.

THEY'RE ALREADY BEHIND CLOSED DOORS AND IT'S APRIL.

THEY DON'T USUALLY START THAT UNTIL MAY USUALLY.

SO I THINK THEY'RE TRYING TO GET AHEAD OF WHAT'S GOING TO BE REALLY HARD.

>> AND IT'S A UNIQUE SITUATION TO KNOW IF WE'RE REALLY AHEAD OR BEHIND WHERE WE OUGHT TO BE BECAUSE OF THE TIE.

I WAS TALKING TO REPRESENTATIVE PINTO.

AND HE WAS JUST SAYING, YOU KNOW, YES, IT'S GOOD THAT WE HAVE HOUSE TARGETS.

SENATE TARGETS.

GOVERNOR'S BUDGET.

BUT THEN WE PASS EVERYTHING, WE HAVE TO REDO ALL THE GLOBAL AGREEMENTS STUFF AND THEN PASS IT AGAIN.

AND IT JUST MADE IT SEEM LIKE THERE'S STILL QUITE A WAYS TO GO.

>> ONE THICK I THINK IS IN TROUBLE IS SPORTS BETTING.

>> Eric: WHAT HAPPENED THERE?

>> THE POLITICIANS ALL SAY THEY'RE GOING TO -- THE ONE THING I HEAR ABOUT IS PAID FAMILY LEAVE, MONG MY FRIENDS AND L LOT OF PEOPLE WHO WRITE IN, WHAT'S THE DEAL WITH SPORTS BETTING?

THERE WAS SUPPOSED TO BE A BILL IN THE COMMITTEE IN IN THE SENATE, AND SENATOR FRANCAIX PULLED IT.

AND THERE'S WAYS TO MAKE IT HAPPEN.

BUT FOR SOME REASON, THEY JUST CAN'T COME TOGETHER.

>> Cathy: WHY IS IT SO TOUCHY?

>> THIS IS NOT THE YEAR, SO THEY MIGHT NOT WANT TO -- >> THEY SAY THAT EVERY YEAR.

>> THEY DO.

>> Mary: AND IT'S A HARD BIPARTISAN COALITION.

IT'S NO ONE PARTY THAT CAN EVER SPORTS BETTING.

WHEN YOU HAVE TO COBBLE TOGETHER A BIPARTISAN VOTE ON EVERYTHING IN THE HOUSTON.

IN THE HOUSE.

THEY WANT TO PRIORITIZE THE BUDGET BILLS.

>> Cathy: YOU BROUGHT TARGETS.

FOR PEOPLE WHO ARE NOT TERRIBLY FAMILIAR, OUR AUDIENCE IS VERY SMART, BUT IF YOU'RE NOT FOLLOWING ALONG.

SO THESE TARGETS, THESE FINANCIAL GOALS IN A SENSE, HOW HARD AND FAST ARE THEY, TOM HAUSER?

>> WELL, THEY'RE NOT REAL HARD AND FAST, BUT GIVEN THE $6 BILLION PROJECTED DEFICIT, THEY CERTAINLY CAN'T SPEND MORE.

THE BUDGET WILL DEFINITELY BE SMALLER.

THE QUESTION IS, HOW MANY BILLIONS OF DOLLARS SMALLER WILL IT BE?

> >> Eric: ARE WE LOOKING AT THIS AS CUTS OR JUST RESTRAINING THE RATE OF GROWTH.

>> BOTH: DEPENDS WHAT SIDE OF THE AISLE YOU'RE ON.

[ Laughter ] >> Mary: BOTH ARE TRUE.

>> THE RAMING FROM REPUBLICANS IS MORE THAT THIS IS A SET OF CUTS AND IT'S HISTORIC.

IT WOULD BE THE BIGGEST IN STATE HISTORY.

I THOUGHT IT WAS TELLING THAT MINORITY LEADER JOHNSON CAME OUT AND SAID 66 BILLION IS LIKELY GOING TO BE THE TOTAL, WHICH WE KIND OF NEW AHEAD OF TIME, IF YOU SHAVE OFF ALL THE ONE-TIME SPENDING FROM 2003, THAT'S WHERE YOU WOULD GET.

>> BUPT EACH THE GOVERNOR HAS -- BUT EVEN THE GOVERNOR HAS FRAMED IT AS THIS IS NOT KITS.

KITS THIS IS A REDUCTION IN THE GROWTH OF FUTURE NEEDS.

>> INFLATION IS BACK IN THE FORECAST.

SO THAT DOES CHANGE THE MATH FOR MANY, MANY YEARS.

THERE WAS NOT INFLATION.

SO IS IT A SLOWING OF THE GROWTH OF THE INFLATION THAT'S FORECASTED OR AN ACTUAL CUT?

>> Eric: WHAT DO I MAKE OF THE DEMOCRATS IN THE HOUSE, CHAIR GOMEZ, OF THE TAXES COMMITTEE, PROPOSING A MILLIONAIRE TAX TO BACKFILL ANY MEDICAID CUTS THAT HAPPEN?

IT SOUNDS LIKE IT IN'T GOING TO GO.

BUT WHO KNOWS.

>> WE TALKED TO CO-CHAIR DAVIDS WHO BASICALLY SAID, YEAH, NO.

>> Eric: RANKING REPUBLICAN.

>> YES, RANKING, REPUBLICAN.

>> Eric: CO-CHAIR.

>> SAID HOUSE REPUBLICANS ARE NOT INTERESTED IN ANYTHING THAT RAISES REVENUE.

SO TO THE SAME END, SENATOR ANN REST, WHO'S CHAIR OF THE SENATE TAX W COMMITTEE, WANTS TO PUT A TAX ON THE COMPANIES THAT DO SOCIAL MEDIA, TAKE DATA FROM MINNESOTANS AND SAME THING, HE JUST SAID, THIS IS NOT THE YEAR TO DO THAT.

>> Mary: YEAH, REPUBLICANS WILL NOT AGREE TO ANY TAX INCREASES.

IT'S KIND OF A POLITICAL STATEMENT.

THEY HAD A WHOLE MONTH TO INTRODUCE AND PASS ALL OF THEIR BILLS.

NOW DEMOCRATS JUST GET TO DO A LITTLE CATCHUP.

>> THE INTERESTING THING ABOUT THE 67-67 TIE DYNAMIC IS THAT REINS OR DEMOCRATS -- REPUBLICANS OR DEMOCRATS CAN STOP ANYTHING THAT THEY DON'T LIKE.

EITHER SIDE CAN DO IT.

IT USED TO BE ONLY ONE SIDE OR THE OTHER UNLESS YOU GET SOMEBODY TO CROSS THE AISLE, WHICH ALMOST NEVER HAPPENS ANYMORE.

>> Eric: WHY IS GOVERNOR WALZ GETTING AFSCME AND MAPE, THE TWO PUBLIC EMPLOYEE UNIONS, UPSET AND ORDERING THEM 50% OF THE TIME BACK TO WORK ON JUNE 1ST?

>> WELL, THEY'VE GOTTEN USED TO THIS, YOU KNOW, SITUATION WHERE PEOPLE CAN ORK FROM HOME.

AND THE UNIONS ARE SAYING, WE HAVE PEOPLE WHO HAVE SOLD CARS.

SO THEY HAVE NO WAY TO GET TO WORK.

BY THE WAY, HIS IS THE PARTY OF MASS TRANSIT.

SAYS THEY HAVE NO WAY TO GET TO WORK BECAUSE THEY DON'T HAVE A CAR.

AND IT JUST, YOU KNOW, THE DAYCARE S PROBLEM.

AND THAT IS CERTAINLY AN ISSUE.

BUT THEY SHOULD NOT HAVE GOTTEN THE MIND-SET THAT THIS WAS GOING TO BE PERMANENT.

>> Eric: BLO IS OLSON HAD AN INTERESTING TAKE.

>> Mary: YES, WHILE WALZ IS A TEACHER AND THE TEACHERS UNION WAS C WITH HIM, MAPE AND AFSCME ACTUALLY ENDORSED THE PERSON WHO'S NOW THE SENATE MAJORITY LEADER, ERIN MURPHY, FOR GOVERNOR.

THERE'S ALWAYS BEEN A LITTLE TENSION BEHIND THE SCENES BETWEEN THE GOVERNOR AND THOSE WRIEWNS.

>> HE'S LOOKING FORWARD TO HIS POLITICAL ASPIRATIONS AND THINKING IF HE'S RUNNING FOR GOVERNOR OR SOME OTHER HIGHER OFFICE, IT CAN HELP HIM MODERATE A LITTLE BIT TO SAY, YOU KNOW, I TOOK THIS STANCE THAT THE UNIONS DIDN'T LOVE.

BUT WE GOT FOLKS BACK TO ST. PAUL OR OTHER CITIES.

>> Eric: HIS SISTER SOULJA MOMENT.

LOOK IT UP, IDS.

>> Cathy: HE TALKS A LOT ABOUT UNIVERSAL SCHOOL MEALS, RIGHT, WHICH THERE'S THIS REPUBLICAN BILL TO SET SOME LIMITS ON THAT.

AND I'M WONDERING, IT'S REALLY POPULAR, BUT IT'S REALLY EXPENSIVE.

IS THIS A MUST-HAVE FOR THE GOVERNOR?

>> PROBABLY, DON'T YOU THINK IT'S HIS BIGGEST VISUAL LEGACY THAT PHOTO OF THE CHILDREN HUGGING HIM?

I THINK HE WAS MOST PROUD OF THAT.

[Overlapping conversations] >> Mary: IT'S VERY EXPENSIVE.

AND YOU REMEMBER THE ARGUMENTS AGAINST IT, TOM, WHERE THEY SAID EDINA KIDS SHOULDN'T HAVE FREE LUNCHES.

SO YEAH, YOU CAN PLAY THAT GAME OF, SHOULD EVERYBODY HAVE IT?

THERE WAS ALWAYS TALK ABOUT CAPPING IT.

BUT THEY DIDN'T HAVE TO IN THE TRIFECTA.

G >> THE GOVERNOR DID MAKE IT A SIGNATURE ACHIEVEMENT IN THE STATE OF MINNESOTA.

WE NO LONGER HAVE AN $18 BILLION SURPLUS.

AND REPUBLICANS ARE LOOKING AT, YOU KNOW, A FAIRLY SENSIBLE BILL IF YOU MAKE 150,000 OR MORE, YOUR KIDS CAN STILL GET FREE BREAKFAST, BUT THEY HAVE TO PAY FOR LUNCH.

IT WOULD SAVE THE STATE 85 MILLION A YEAR REPUBLICANS SAY.

> >> Eric: WHERE ARE WE ON THE WASTE, FRAUD, AND ABUSE.

>> THEY'RE STILL MOVING THROUGH SOME OF OF THE PACKAGE.

BUT IN MY OBSERVATIONATION, IT SEEMS LIKE THE COMMITTEE DESIGNATED FOR THAT IS SPENDING A LOT OF TIME BRINGING THE GOVERNOR'S AGENCIES FREMPED, TALKING TO DEPARTMENT HEADS ABOUT HOW DID YOU HANDLE THIS SITUATION OR THIS SITUATION, COULD YOU HAVE DONE BETTER?

AND I KNOW THERE'S A DISAGREEMENTS BETWEEN DEMOCRATS AND REPUBLICANS ON THAT PANEL ABOUT, IS THIS THE BEST USE OF OUR TIME.

SHOULD WE BE LOOKING AT LEGISLATION OR SHORING UP PLACES WHERE THE STATE COULD BE A HARDER TARGET AGAINST SCAMMERS.

>> Cathy: SO I MENTIONED THE GOVERNOR TRAVELING.

HOW -- BECAUSE IT DOESN'T SEEM LIKE HE'S GOING TO STOP.

HOW MIGHT THEY AFFECT THE LAST SIX WEEKS OF SESSION?

>> Mary: EVERY TIME WE BRING IT UP, WE GET PUSHBACK.

THEY ARE SAYING THEY'RE TRYING TO KEEP IT AT NIGHTS AND WEEKENDS.

>> Eric: VENTURA USED THAT EXCUSE.

>> Mary: UT V VENTURA SAID HE HAD TO TAKE A PAY CUT TO BE GOVERNOR.

>> SO, YEAH, THE BIGGER IMPACT MIGHT BE IF HE RUNS FOR GOVERNOR AGAIN.

THERE MAY BE OPPONENTS WHO USE THIS AGAINST HIM.

ARE YOU PAYING ATTENTION TO MINNESOTA?

OR ARE YOU RUNNING FOR PRESIDENT IN FOUR YEARS?

>> Eric: CAN THEY BE DONE ON MAY 19TH.

>> Mary: THEY ALL SAY THEY CAN.

>> I'M GOING TO SAY YES, BUT THEN THEY'LL COME BACK.

FOR ALL THE FEDERAL CUTS.

>> Mary: EVERYBODY'S ADMITTING -- BECAUSE THE FEDERAL MONEY IS SO VOLATILE.

>> 80% NO, THEY WILL NOT GET DONE ON TIME.

NOW I THINK IT'S 50-506789 >> Cathy: REALLY?

BUT WON'T THEY HAVE TO BE ON ALERT MOST OF THE SUMMER?

>> WATCH WHAT YOU'RE SPENDING MONEY ON, BECAUSE SOME OF IT MAY DISAPPEAR, IF YOU RELY A LOT ON FEDERAL MONEY.

>> Eric: SO THERE'S QUITE A BIT OF UNCERTAINTY STILL UP THERE?

>> A LOT.

BUT DEPENDING WHO YOU TALK TO, THERE'S A LOT OF DEFLECTION ABOUT JUST HOW BIG OF AN ISSUE THAT'S GOING TO BE LATER ON.

>> Eric: AND KEITH ELLISON, ATTORNEY GENERAL OR GOVERNOR?

>> HE MADE NEWS TONIGHT.

HE SAYS HE LOVES HIS JOB.

SO THERE YOU GO.