>> ERIC: LET'S GET AN IN-PERSON UPDATE ON WHERE THE BUDGET DEAL STANDS FROM THE FOUR TOP LEGISLATIVE LEADERS.

REPUBLICAN HOUSE SPEAKER LISA DEMUTH HAILS FROM COLD SPRING.

HOUSE DFL LEADER MELISSA HORTMAN IS HERE, SHE REPRESENTS BROOKLYN PARK.

DFL SENATE MAJORITY LEADER ERIN MURPHY CALLS ST. PAUL HOME.

AND REPUBLICAN SENATE MINORITY LEADER MARK JOHNSON FROM EAST GRAND FORKS ROUNDS OUT THE GROUP.

SENATOR JOHNSON, YOU WERE DEPICTED THERE IN MARY'S PIECE.

YOU'VE HAD TIME NOW TO DIGEST THE DEAL, I ASSUME.

AND IF LEADER MURPHY NEEDS VOTES FROM YOUR REPUBLICAN CAUCUS, WHAT ARE YOU GOING TO NEED TO PROVIDE SOME VOTES IF SHE NEEDS THEM?

>> CERTAINLY.

I THINK OUR CAUCUS IS VERY INTERESTED IN MOVING FORWARD ON BIPARTISAN ISSUES.

AND WE'VE SEEN WITHIN THE SENATE, BOTH ON THE FLOOR AND IN COMMITTEES, AND I THINK WE CAN DO A NUMBER OF THINGS THAT WOULD MOVE THIS AGENDA FORWARD AND HAVE MINNESOTANS BE VERY PROUD OF WHAT WE END UP WITH.

>> Eric: A CONDITION FOR YOUR SUPPORT, A ACKAGE OF BUSINESS THINGS, OR WHATEVER IT MIGHT BE?

>> I WOULDN'T SAY BUSINESS THINGS.

I THINK JUST THINGS THAT MINNESOTANS ARE INTERESTED IN.

SO YES.

>> Eric: DO YOU NEED REPUBLICAN VOTES?

I HEARD UP TO 17 VOTES I EARD YOU HAD TODAY UP THERE.

>> SO I THINK IT IS ALWAYS IMPORTANT IN THE SENATE, THIS YEAR HAS BEEN A REAL MODEL, OF WORKING ACROSS THE CHAMBER, WORKING ACROSS OUR DIFFERENCES.

AND I THINK AS WE ARE COMING INTO THESE LAST DAYS, LEADER JOHNSON AND I ARE GOING TO WORK REALLY HARD TO PASS THE BILLS WITH BIPARTISAN SUPPORT.

>> Eric: DO YOU KNOW HOW MANY YOU NEED?

LIKE ON THE HUMAN SERVICES BILL, FOR INSTANCE?

>> WE NEED 34 VOTES.

>> Eric: HOW MANY DO YOU HAVE?

>> WE NEED 34 VOTES.

>> Eric: OKAY.

>> GIVEN THE AN -- >> Cathy: GIBB THE ANGST THAT WE'VE SEEN, I'M WONDERING, DID YOU ALL GET BACK TO YOUR CAUCUSES BEFORE YOU CAME TO THIS AGREEMENT?

DID YOU CHECK WITH YOUR CAUCUSES?

HOW DID THIS ALL WORK?

>> AS WE WERE WORKING IN THE GOVERNOR'S CABINET ROOM, ALL OF US TOGETHER, AND I'M REALLY GRATEFUL THAT GOVERNOR WALZ INVITED SENATOR JOHNSON TO BE A PART OF THOSE DISCUSSIONS, AS WAS LISTED, WE ARE SUCH A TIGHT MAJORITY/MINORITY RIGHT NOW IN THE LEGISLATURE, 101 DEMOCRATS, 100 REPUBLICANS.

IT WAS IMPORTANT THAT WE ALL HEARD THE SAME THINGS AND THAT WE WERE WORKING TOWARDS SOLUTIONS.

AS FAR AS BRINGING THAT TO OUR CAUCUSES, WE DID THAT TOGETHER AFTER EVERYTHING WAS REACHED AT 9:00 YESTERDAY MORNING.

>> Cathy: SO, THE ANGST THAT WE'RE HEARING, NOW, DID YOU EXPECT THAT?

>> WELL, DEFINITELY.

WE HAVE BEEN KEEPING UR CAUCUSES INFORMED AS TO THE ISSUES THAT WERE ON THE TABLE.

IT WAS REALLY IMPORTANT TO US IN 2023 WHEN WE PASSED HEALTHCARE FOR UNDOCUMENTED IMMIGRANTS, THAT WAS A REALLY IMPORTANT ACCOMPLISHMENT, FOR OUR TEAM, AS I AID IN MARY'S PIECE, OUR CAUCUS IS FULL OF IMMIGRANTS.

THEY ARE CHILDREN OF IMMIGRANTS, AND THIS IS VERY PERSONAL TO THEM.

THEY HAVE FAMILY MEMBERS WHO ARE RECEIVING LIFE-GIVING CARE WHO WEREN'T ELIGIBLE FOR CARE BEFORE, AND, SO, THE IDEA OF LOSING THAT CARE, IT'S NOT JUST A STATISTIC, IT'S PEOPLE THEY KNOW.

>> Cathy: SUCH A FLASH POINT.

AND I'M WONDERING, CALIFORNIA GOVERNOR NEWSOM IS SCALING BACK THEIR PROGRAM, A SIMILAR PROGRAM IN CALIFORNIA.

WHY IS THIS GOOD PUBLIC POLICY?

TO -- >> FROM MY PERSPECTIVE, IT'S NOT GOOD PUBLIC POLICY, IT'S NOT GOOD HEALTHCARE POLICY.

MINNESOTACARE, WHEN CREATED BACK IN 1992, IT IS A COVERAGE PROGRAM FOR PEOPLE WHO WORK FOR A LIVING BUT DON'T GET THEIR COVERAGE THROUGH THEIR EMPLOYER.

PEOPLE WHO ARE GOING TO LOSE COVERAGE ARE TAX-PAYING, WORKING MINNESOTANS, THEY ARE PAYING PREMIUMS AND CO-PAY FOR THEIR COVERAGE, THEY'RE GOING TO LOSE THEIR COVERAGE, AND THAT CARE THAT THEY ARE RECEIVING NOW WILL BE SHIFTED TO EVERYBODY ELSE.

SO THE HOSPITALS WILL SEE MORE UNCOMPENSATED CARE, AND ALL OF THAT IS GOING O SPREAD ACROSS EVERYBODY'S INSURANCE PREMIUMS.

SO IT IS PENNY WISE, OUND FOOLISH.

>> LEADER MURPHY AND I FOUGHT VERY VERY HARD TO AVOID HAVING TO MAKE THIS AGREEMENT.

THIS WAS SOMETHING THAT THE HOUSE GOP WANTED.

>> AND IT'S A VERY PAINFUL DECISION.

>> THE COMPROMISE HAT WE CAME TO KEEPS CHILDREN OF UNDOCUMENTED PEOPLE ON THE PLAN.

SO WE WANT TO MAKE SURE THAT WE'RE PROVIDING FOR CHILDREN AS THEY'RE IN BETWEEN.

IT'S IMPORTANT TO RECOGNIZE, THOUGH, WITH MINNESOTACARE, THE PEOPLE THAT ARE UNDOCUMENTED THAT ARE CURRENTLY ON THAT PROGRAM, THERE'S NOTHING TO PREVENT THEM FROM GOING ON THE PRIVATE MARKET AND PURCHASING INSURANCE.

THERE'S NOTHING TO PREVENT THEM FROM GOING IN AND GETTING HEALTHCARE.

WHAT THIS IS SAYING IS THAT TAXPAYERS ARE NOT ON THE HOOK FOR 100% OF THE PREMIUMS FOR THIS.

AND, SO, THAT'S A REALLY NUANCED PIECE.

IT'S NOT A LACK OF COMPASSION, IT'S LOOKING AT WHEN WE STARTED OUT THE PROJECTIONS WERE 5700 PEOPLE THAT WERE GOING TO BE ON THIS.

IN FIVE SHORT MONTHS, BECAUSE IT JUST STARTED IN ANUARY OF THIS YEAR, IN FOUR AND A HALF, NOT EVEN FIVE FULL MONTHS, BUT BY APRIL 24th, THERE'S OVER 20,000 PEOPLE ON IT.

WHEN WE LOOK AT THE EXPLODING COSTS OF IT, IT IS UNAFFORDABLE AT THIS POINT.

FAITH COMMUNITIES, OTHER PEOPLE THAT WANT TO GIVE TO GENEROSITY WITHIN OUR COMMUNITIES CAN HELP PEOPLE ALONG THE WAY.

IT IS JUST SAYING THAT FOR THIS EXPLOSION OF PEOPLE, ADULTS, THAT IT'S NOT GOING TO BE ON THE TAXPAYERS 100%.

>> THE REASON THAT O MANY PEOPLE HAVE SIGNED UP IS A DEMONSTRATION OF THE NEED.

AND THE REASON WHY PEOPLE WHO ARE WORKING FOR A LIVING BUT DON'T GET THEIR COVERAGE THROUGH THEIR EMPLOYER CAN'T GET IT ON THE PRIVATE MARKET IS BECAUSE IT'S TOO EXPENSIVE.

>> BUT THE REALITY IS THAT THERE'S SO MUCH RISK TO THE TAXPAYER AND TO MINNESOTA THAT WE COULDN'T CONTROL THE COSTS ON THAT.

AND WE HAVE A FINITE BUDGET WITHIN THE STATE.

SO US AS POLICYMAKERS, AS LEGISLATORS, WE HAVE TO FIGURE OUT WHERE THE BOUNDARIES ARE.

IN THIS AGREEMENT, IT ALLOWS FOR COMPASSION, BUT IT ALSO ALLOWS FOR US TO CONTROL THE COSTS TO THE STATE AND PROTECT THE TAXPAYERS.

>> Cathy: IS THERE A DATE -- GO AHEAD.

>> PAY FOR HEALTHCARE FOR POOR PEOPLE IN MINNESOTA, THIS IS AN OTHER'ING.

THIS IS TREATING PEOPLE WHO ARE IN OUR COMMUNITY, WHO ARE TAXPAYERS, WHO ARE WORKING, WHO ARE OUR NEIGHBORS, AND MEMBERS OF OUR CHURCHES, IT IS TREATING THEM IFFERENTLY BECAUSE OF THEIR LEGAL STATUS.

AND WE THINK IT'S CRUEL AND WE WISH THAT THIS WASN'T NECESSARY, BUT IT WAS NECESSARY TO MAKE THE DEAL.

>> ARE WE GOING TO DO IT AT THE EXPENSE OF NURSING HOMES?

OF FOLKS THAT -- ELDERLY THAT ARE LOOKING FOR A PLACE TO LIVE AS WELL, TOO?

WE HAVE TO MAKE SURE THAT WE'RE BALANCING THIS IN THE PRIORITIES THAT ARE RIGHT.

HOPEFULLY WE'VE DONE THAT.

I THINK THIS COMPROMISE WORKS THAT OUT.

>> Cathy: IS THERE A DANGER THAT THIS COULD DERAIL THIS WHOLE BUDGET DEAL?

BECAUSE THERE SEEMS TO BE A COMPLETE LACK OF AGREEMENT HERE.

>> THIS IS A VERY HARD ISSUE, BUT THERE WERE OTHER HARD ISSUES THAT WE LOOKED AT.

WE AVE AN IMPENDING DEFICIT COMING UP, AND WE REALLY TOOK A LARGE CHUNK OUT OF THAT GOING FORWARD.

SO THE STRUCTURAL IMBALANCE, WE WERE ABLE TO REDUCE IN MAKING CUTS ACROSS THE BOARD, BUT THERE WERE THINGS THAT AFFECT THE BUSINESS COMMUNITY, AFFECT OUR SCHOOLS, THINKING OF PAID FAMILY LEAVE, EARNED SICK AND SAFE TIME THAT WE WANTED TO DO MORE ON AND WE WEREN'T ABLE TO, WE WERE ABLE TO JUST DO VERY LITTLE.

THIS IS ONE HARD DECISION OUT OF A NUMBER WHEN WE CAME FOR A COMPROMISE IN THE WORK THAT WE NEEDED TO DO.

>> Eric: TAX BILL?

FOLKS GOING TO SEE A TAX INCREASE?

>> THERE ARE SOME REVENUE INCREASES WITHIN THE AGREEMENT ITSELF.

>> Eric: ARE YOU FOR IT OR AGAINST 'EM?

>> WE'RE AGAINST THEM.

WHATEVER WE CAN DO HERE IN THE NEXT COUPLE WEEKS TO PROTECT MINNESOTA TAXPAYERS, IS WHAT WE'RE REALLY INTERESTED IN.

WE WANT A PRODUCT THAT COMES OUT THAT'S A COMPROMISE THAT WORKS FOR ALL MINNESOTANS.

AND WE'LL KEEP WORKING THERE UNTIL THE END.

>> Cathy: YOU SAID WEEKS.

>> WE MADE ALMOST $5 BILLION OF CUTS IN THE STATE BUDGET FROM LAST BIENNIUM TO THIS BIENNIUM.

>> Eric: ONE-TIME MONEY IN THERE.

>> A LOT.

ABOUT 4 MILLION.

[ OVERLAPPING CONVERSATION ] >> THE IMPORTANT THING TO RECOGNIZE, THOUGH, WE HAD RECORD SPENDING OVER THE LAST COUPLE OF YEARS, TOO.

SO THIS WAS TAKING A CHUNK OUT OF THAT GOING FORWARD, PLANNING FOR THE FUTURE.

THE OTHER THING WE DID IS NO MINNESOTA FAMILIES ACROSS THE BOARD ARE GOING TO SEE TAX INCREASES.

THEY'VE EXPERIENCED INCREASE IN FEES OVER THE LAST FEW YEARS, AND OTHER THINGS THAT HAVE AFFECTED THEIR FAMILY BUDGET, WE WORKED TOGETHER TO REALLY HOLD THAT COST DOWN FOR MINNESOTA FAMILIES.

>> Eric: WHAT HAPPENED TO FREE MEALS FOR STUDENTS, IS THAT STILL ALIVE?

>> WELL, THAT IS THE GOOD NEWS OF THE AGREEMENT.

WE WERE ABLE TO PROTECT THE VAST MAJORITY OF THE 2023 WINS.

FREE MEALS FOR STUDENTS, EARNED SICK AND SAFE TIME, PAID FAMILY MEDICAL LEAVE, REPRODUCTIVE FREEDOM SO, A LOT OF THE WINS THAT WE WORKED SO HARD FOR.

WHAT WE DID IN THE BUDGET AREA, WE TRIED TO SLOW DOWN THE GROWTH IN FAST-GROWING PROGRAMS.

SO WHILE IN E-12 YOU SEE A CUT TARGET OF $420 MILLION, IT'S ACTUALLY A REDUCED INCREASE.

SO WE'LL STILL BE INCREASING FUNDING FOR OUR E-12 SCHOOLS, BY MORE THAN $1.4 BILLION, BUT WE WON'T BE INCREASING FOUNDING OUR E-12 SCHOOLS BY $1.8 BILLION.

SO WE JUST SLOWED DOWN THE GROWTH MAKE SURE THAT THE GROWTH IN SPENDING IN THE STATE CAN KEEP UP WITH THE GROWTH IN REVENUES.

>> Cathy: SO YOU SAY YOU HAVE SOME WINS.

I'M WONDERING, GETTING BACK TO THE HEALTH AND HUMAN SERVICES BILL AND THE UNDOCUMENTED INDIVIDUALS, COULD THAT BE TAKEN OUT OF THE OMNIBUS BILL AND TRAVEL SEPARATELY?

>> WE ARE DEFINITELY TALKING ABOUT THAT BECAUSE CERTAINLY AS YOU COULD SEE, MEMBERS OF OUC CAUSE DON'T WANT TO VOTE FOR THAT.

SO IF THERE'S A STAND-ALONE BILL THAT REPEALS HEALTHCARE ADULT UNDOCUMENTED INDIVIDUALS, THAT BILL NEEDS TO TRAVEL SEPARATELY.

>> IT'S IMPORTANT TO RECOGNIZE, THOUGH, IN AA -- IN A LOT OF THESE BILLS, YOU KNOW, HEALTH AND HUMAN SERVICES, THERE ARE THINGS THAT MEMBERS OF THE REPUBLICAN PARTY HAVEN'T WANTED TO VOTE FOR OVER YEARS BECAUSE OF ABORTION CARE THAT IS PROVIDED IN FUNDING IN THERE.

IT'S SOMETHING REPUBLICANS HAVE REALLY STOOD AGAINST, YET, IT'S PART OF, BY A COURT CASE FROM 1992, DOUGH VS. GOMEZ, THAT IS -- DOE VS. GOMEZ, THAT IS PART OF WHAT WE HAVE TO DO IN THE STATE OF MINNESOTA.

SO I THINK WHEN LAWMAKERS ARE LOOKING AT BILLS, AND THIS S NOT JUST OMNIBUS BILLS, BUT AREAS OF THE WORK THAT WE DO, WE'RE LOOKING AT THESE BILLS, THERE ARE THINGS IN THERE THAT WE DON'T LIKE, AND THEN THERE ARE THINGS THAT WE KNOW WE HAVE TO DO.

AND, SO, IT'S REALLY HARD DECISIONS AS WE GET INTO MORE OF THESE SOCIAL ISSUES OR DIVIDING ISSUES AND COMPROMISES THAT CAN BE MADE, SOME THAT DON'T MAKE EVERYBODY HAPPY BUT WE STILL HAVE TO GET THE WORK DONE AS LOSE TO ON TIME AS POSSIBLE.

>> Eric: AS A YOUNG PERSON WHO'S ONE OF THE VETERANS OF THE LEGISLATURE, I WOULD LIKE TO ASK THE SPEAKER EMERITA, IF YOU GOT ENOUGH OUT OF THIS SESSION, GIVEN ALL OF THE UPS AND OWNS OF THE SESSION, HOW IS THIS A HALF GLASS FULL OR A HALF GLASS EMPTY OR WHERE DO YOU SEE IT?

>> WITH A HEAVY HEART THAT WE ACCEPTED THIS DEAL.

THE MOST IMPORTANT THING IN MINNESOTA STATE GOVERNMENT IS TO FUND MINNESOTA STATE GOVERNMENT.

OUR JOB THIS YEAR WAS TO ADOPT A TWO-YEAR BUDGET.

YOU SAW IN 2005, A PARTIAL GOVERNMENT SHUTDOWN, IN 2011, A PRETTY HARD SHUTDOWN.

THAT IS DEVASTATING FOR PEOPLE, WHEN ALL THOSE FAMILIES OF STATE WORKERS DON'T GET PAYCHECKS, WHEN MINNESOTANS CAN'T ACCESS THE SERVICES THEY NEED, SO THE MOST IMPORTANT THING IS TO KEEP GOVERNMENT FUNCTIONING, BUT ALSO TO PRESERVE THOSE VERY SIGNIFICANT WINS FROM 2023 THAT I TALKED ABOUT, EARNED SICK AND SAFE TIME, PAID FAMILY MEDICAL LEAVE.

>> Eric: WHAT WOULD YOU AY, MADAM SPEAKER, ABOUT THE SUCCESS OR FAILURE OF THE SESSION?

>> WE HAVE HAD, IN THE HOUSE OF REPRESENTATIVES, A VERY CHALLENGING START.

WE HAD A TIE AND THEN WE HAD A ONE-SEAT ADVANTAGE.

THE DEMOCRAT CAUCUS STAYED UT FOR 23 DAYS.

UNTIL THEY CAME BACK IN FEBRUARY TO GET THE SESSION STARTED.

EVEN THOUGH THE LEGISLATIVE SESSION STARTED JANUARY 14th, WE COULDN'T DO THAT WORK.

I BELIEVE WE CAN GET THIS DONE.

WE ARE COMPLETELY OUT OF TIME.

BUT MINNESOTANS EXPECT US TO DO THE WORK.

>> Eric: JUNE 30th OR MEMORIAL DAY OR MONDAY NIGHT?

OR WHAT?

>> I SURE HOPE BY MEMORIAL DAY, IF NOT MONDAY NIGHT.

EVERYBODY'S BACK AT THE CAPITOL RIGHT NOW WORKING.

IT HAS BEEN, IN MY -- THIS IS MY 18th SESSION, I THINK THIS HAS BEEN THE MOST DIFFICULT SESSION I'VE EVER BEEN A PART OF FROM THE VERY BEGINNING.

AND WE HAVE WORKED OUR WAY THROUGH IT IN THE LAST COUPLE OF WEEKS, THE FOUR OF US, AND MARK JOHNSON AND I GO FOR A WALK TOGETHER EVERY WEDNESDAY MORNING, WE AGREED TOGETHER THAT HE WAS GOING TO COME INTO THE NEGOTIATIONS.

I THINK WE'VE GOTTEN TO KNOW EACH OTHER BETTER.

WE'RE DOING IMPORTANT WORK TOGETHER.

WHICH IS WHAT MINNESOTANS EXPECT US TO DO.

BUT IT'S BEEN A HARD ONE.

>> Cathy: IT LOOKS LIKE -- YEAH, I BET IT HAS BEEN QUITE HARD.

>> YEAH.

>> Cathy: YOU JUST MADE A COMMENT A FEW MINUTES AGO, WEEKS.

SO I'M ASSUMING WHEN YOU SAID THAT, THIS IS GOING TO GO NTO SOME OVERTIME.

>> CERTAINLY.

WE'RE AT THAT POINT RIGHT OW, EVEN THE PAPERWORK ITSELF, GOING THROUGH THE REVISOR'S OFFICE, WE'LL HAVE TO SPEND SOME TIME GETTING THAT DONE.

YOU KNOW, HOPEFULLY WE GET THIS WRAPPED UP BY MEMORIAL DAY.

I KNOW THE GOVERNOR'S SCHEDULE QUITE BUSY TOWARDS THE END OF THE MONTH, INTO NEXT MONTH.

SO I'M SURE HE'S KIND OF PRESSURING TO GET THINGS GOING, TOO.

SO I THINK WE'RE ALL ALIGNED ON MAKING SURE THAT THIS GETS DONE EARLIER RATHER THAN LATER.

>> ND EVEN WITH THE CHALLENGES THAT WE FACED, WE HAVE DONE THE WORK, AND NOTHING HAS GROUND TO A HALT.

AND, SO, I THINK IT'S IMPORTANT TO RECOGNIZE, EVEN WITH THE CONTROVERSY AND THE CHANGES AND EVERYTHING THAT'S GONE ON, WE HAVE BEEN ABLE TO SOMEHOW BRING THIS TOGETHER AND WORK, WHICH WE ARE DOING ALL THE WAY THROUGH MONDAY NIGHT, IF THERE IS SOME LEFTOVER, WE WILL DEFINITELY GET THAT DONE.

>> WE GOT THIS DONE FIVE DAYS AHEAD OF 2019, AND IN 2019, WE NEEDED ONLY A ONE-DAY SPECIAL SESSION, WE GOT IT DONE BEFORE MEMORIAL DAY WEEKEND.

SO, IF ALL OF THE MEMBERS HAVE THEIR NOSES TO THE GRINDSTONE, WE SHOULD BE ABLE TO COME IN FOR A ONE-DAY SPECIAL SESSION BEFORE MEMORIAL DAY WEEKEND.

NOW, IF THEY'RE CONTENTIOUS, THEN THAT COULD PUSH IT INTO THE WEEK FOLLOWING LABOR -- OR MEMORIAL DAY.

I HOPE NOT.

>> Cathy: SO YOU ALL WILL HAVE TO REALLY GET YOUR CAUCUSES UNDER HEEL IN A SENSE, RIGHT, TO MAKE SURE EVERYONE'S MOVING FORWARD.

>> Eric: PERSUASIVE.

>> PEOPLE NEED TO BEND.

THEY NEED TO UNDERSTAND THEY WON'T GET EVERYTHING THEY WANT.

>> Eric: GOTTA GO, REALLY APPRECIATE YOU COMING DOWN.

THE TRADITION CONTINUES.

>> Cathy: GOOD LUCK.

>> Eric: THA