>> Cathy: CRUNCH TIME AT THE CAPITOL.

CRUNCH TIME FOR "ALMANAC" TOO, WHAT THE HECK SO E'RE GOING TO JUMP INTO THIS WEEK'S POLITICAL PANEL BECAUSE INTERESTS A OT TO TALK ABOUT.

D.F.L.ERS UP FIRST, JEFF HAYDEN IS FORMER STATE SENATOR, LOOKING VERY, VERY NICE THERE.

KARLA BIGHAM SERVED IN BOTH THE HOUSE AND SENATE AND IS NOW A WASHINGTON COUNTY COMMISSIONER.

REPUBLICANS JOINING US, AMY KOCH FORMER SENATE MAJORITY LEADER, NOW A LOBBYIST AND ROUNDING OUT THE PANEL IS PAT GAROFALO, FORMER STATE REPRESENTATIVE, CURRENT PRESIDENT OF THE MINNESOTA GROCERS ASSOCIATION.

PAT GAROFALO, THAT POWER SHARING AGREEMENT IN THE HOUSE, HOW IS IT HOLDING UP?

WHAT ARE YOU HEARING FROM PEOPLE?

>> WELL, IT'S THE END OF SESSION, SO WHETHER IT'S REPUBLICAN OR DEMOCRAT, A GOOD 80 TO 90% OF THE EGISLATURE LOSES THEIR MINDS.

[ LAUGHTER ] THAT'S WHAT WE'RE GOING THROUGH RIGHT NOW.

YOU GOT TO TEAR THINGS DOWN, REBUILD THEM.

THERE'S GOING TO BE A SPECIAL SESSION, WE ALL KNOW THAT.

THERE'S SOME GOOD LEGISLATIVE LEADERSHIP IN THE HOUSE, THEY'LL WORK WITH REASONABLE PARTNERS IN THE SENATE.

CLEAN UP THE SENATE'S MESS LIKE THE HOUSE USUALLY DOES.

>> OH!

[ GROANING ] >> THERE'S BIG THINGS TO RESOLVE, QUITE A FEW FIGHTS TO RESOLVE BUT AT THE END DAY THEY'LL GET THE JOB DONE ND THEY'LL MOVE ON.

>> Eric: THE FREE MEDICAL CARE FOR ILLEGAL IMMIGRANTS IS A BIG ISSUE.

WHAT IF THEY JUST SAID KIDS OF ILLEGAL IMMIGRANTS?

WOULD THAT CUT -- >> I THINK WE LIKE TO CALL THEM UNDOCUMENTED IMMIGRANTS.

>> Eric: WELL, YEAH.

>> I THINK THAT'S SOMETHING THEY'RE GOING TO HAVE TO WORK OUT.

I WATCHED THE POCI CAUCUS' PRESS CONFERENCE AND THAT WAS KIND OF A RED LINE FOR THEM.

FOR INSTANCE THEY THOUGHT IT WOULD BE 5,000 PEOPLE, IT'S 20,000.

WORKING IN HEALTH CARE, HERE'S HOW IT WORKS, IF YOU DON'T GET PRIMARY CARE UP FRONT, THEY GET REALLY SICK AND END UP IN THE EMERGENCY ROOM SO SOMEBODY HAS TO PAY FOR IT.

THEY'RE GOING TO HAVE TO FIGURE IT OUT BUT IT COSTS A LOT MORE THAN THEY THOUGHT.

>> Eric: ISSUE AS A POLITICIAN?

IS >> YEAH, IT'S BOTH A POLITICAL PROBLEM FOR THE DEMOCRATS AS WELL AS A FINANCIAL PROBLEM.

SETTING ASIDE POLITICAL RAMIFICATIONS AND IMMIGRATION IS ON A HOT TOPIC ISSUE.

PRESIDENT TRUMP WHEN HE'S IN TROUBLE HE BRINGS UP IMMIGRATION BECAUSE IT'S A GOOD ISSUE FOR REPUBLICANS BUT PUTTING THAT ASIDE THE NUMBERS JEFF INDICATED ARE SUPER PROBLEMATIC, THEY KIND OF BLEW A HOLE IF THAT BUDGET AND NOW EVEN THOUGH THERE ARE QUITE A FEW MORE PEOPLE, THEY'RE TAKING SLIGHTLY LESS BENEFITS THAN THEY THOUGHT BUT EVEN STILL AT QUADRUPLE THE AMOUNT IN THE FIRST COUPLE MONTHS, IT'S A PROBLEM.

>> AND I THINK IT'S FORECASTING WHAT THE FEDS ARE GONNA DO RELATED TO MEDICAID, RELATED TO A LOT OF THE OTHER FEDERAL FUNDING THAT'S GOING TO BE COMING DOWN THE CUTS, AS A COMMISSIONER, THE SHIFTS THAT ARE COMING ON, I THINK MINNESOTANS NEED TO KNOW WHEN THE STATE AND FEDS SHIFT ONTO THE COUNTIES, PROPERTY TAXES GO UP AND IT'S REAL AND IT'S GOING TO HURT.

AND SO THAT'S WHAT I THINK A LOT OF US ARE WATCHING IN IN THE COMING WEEKS AS THEY LAND THIS PLANE.

I AGREE WITH PAT THAT -- >> IT'S REPRESENTATIVE, BY THE WAY.

[ LAUGHTER ] >> JEEZ!

>> HE'S TRYING TO PICK A FIGHT.

>> SO THAT THERE WILL BE A SPECIAL SESSION, BUT MAKE NO MISTAKE, THEY HAVE A LOT OF WORK YET TO DO AND THEY HAVE TO DO THE ONE-TWO STEP AND GET IT GOIN'.

>> Cathy: DID YOU THINK LISTENING O REPRESENTATIVES YOUAKIM AND BAKEBERG THAT EDUCATION FUNDING BILL MIGHT BE A LITTLE PROBLEMATIC MAYBE?

>> IT'S GONNA BE VERY PROBLEMATIC.

IT HAS BEEN.

SO WE HEARD A WEEK AGO OR SO THAT THERE WAS A DEAL IN THE HOUSE.

THAT BILL WENT TO THE FINANCE COMMITTEE AND THEN IT WAS, THEN THE DEMOCRATS SAID, NO, WE'RE NOT VOTING FOR THAT ILL, WE DON'T SUPPORT IT.

SO IT'S ALREADY BEEN PROBLEMATIC FOR A COUPLE DIFFERENT REASONS.

>> Eric: SAFE AND SICK TIME.

WAS IT EIGHT BLUE DOG DEMOCRATS IN THE SENATE THAT ROLLED IT BACK FOR SMALL BUSINESS?

>> YEAH, YOU KNOW.

>> Eric: WHAT'S GOING ON THERE?

>> I SAW THAT, I THINK THAT THEY'RE HAVING SOME BUYER'S REMORSE THERE AND THEY'RE IN TOUGH DISTRICTS AND THEY WANT TO BE ABLE TO GO BACK AND WORK WITH SMALL BUSINESS, THEY'RE HEARING THAT THERE'S SOME PROBLEMS.

I THINK THAT THEY PROBABLY NEED TO PUSH THAT DOWN THE LINE A LITTLE BIT BUT I THINK THEY WANTED TO CLEARLY SAY THAT THEY WERE LISTENING TO SMALL BUSINESS IN THEIR COMMUNITIES.

>> Eric: PAID LEAVE, YOUR MEMBERS NERVOUS ABOUT IT?

>> OH, YEAH, ABSOLUTELY.

AS EVERYONE SHOULD BE.

BUT LET'S REMEMBER THAT MINNESOTA'S STRATEGIC STRENGTH HAS BEEN, IS, AND WILL ALWAYS BE OUR ABILITY TO WORK TOGETHER AND COOPERATE.

SO RATHER THAN ATTACKING THOSE PEOPLE WHO ARE WORKING WITH THE OTHER SIDE OF THE AISLE AND REVISITING LEGISLATION THAT CANDIDLY IS UNPAID FOR AND S UNSUSTAINABLE THAT NEEDS TO BE RESOLVED, RATHER THAN ATTACKING THOSE PEOPLE WE SHOULD BE SUPPORTING IT.

NOW, AS A CONSERVATIVE, OF COURSE I WISH D.F.L.ERS ARE GOING FARTHER AND REFORMING BILLS BUT ANY STEP IN THE DIRECTION IS A GOOD THING.

AND REALLY STOP KNEE CAPPING ANY LEGISLATOR WHO'S WORKING WITH THE OTHER SIDE OF THE AISLE.

>> IN THE NINE YEARS I WAS IN BOTH CHAMBERS THERE WERE NUMEROUS TIMES WE CAME BACK AND REVISITED POLICY BECAUSE WE MODERNIZED OR BECAUSE IT DIDN'T WORK FOR WHOMEVER, IT DIDN'T MATTER WHAT POLICY IT WAS, WE HAVE THE IGHT TO REVISIT THAT, AND WE SHOULD AND WE REALLY SHOULDN'T BE ATTACKING PEOPLE BECAUSE THEY'RE REVISITING THINGS THAT AREN'T WORKING AND THEY'RE HEARING THE FEEDBACK.

>> WITH ALL DUE RESPECT TO PAT GAROFALO, AND EVEN KARLA.

[ LAUGHTER ] THAT'S NOT HOW HE OPERATED AND THAT'S NOT HOW IT OPERATES OVER THERE.

YOU GO AFTER EACH OTHER.

NOW, IT WOULD BE NICE IF WE ALL JUST KIND OF GOT ALONG AND WENT BACK TO REVISIT IT BUT THERE IS GOING TO BE ON THE SIDE THAT FEELS PASSIONATE ABOUT THE ISSUE, CORPORATE FOLKS GET SAFE AND SICK TIME, CORPORATE FOLKS GET PAID LEAVE.

>> YEP.

>> AND SO SAYING THAT OTHER FOLKS SHOULD DO IT.

SHOULD WE GO BACK AND MAKE SURE IT WORKS?

WE SHOULD, BUT THIS IDEA THAT WE SHOULD REVISIT IT AND PAT GAROFALO WASN'T ATTACKING PEOPLE.

[ LAUGHTER ] >> LET THE TAPE REFLECT WAS ALWAYS ONE OF THE MOST CALMEST, MILD MANNERED.

>> I'VE BEEN IN THE ROOM.

[ LAUGHTER ] >> 20 YEARS, 20 YEARS.

>> THE TWITTER.

[ LAUGHTER ] >> SAY >> Cathy: IS THERE GOING TO BE A SOCIAL MEDIA IMPACT FEE?

>> OH, GOSH.

NO.

COME ON.

>> Cathy: WHY?

JUST ANSWER THE QUESTION.

>> WHAT YOU DO HERE IS PUT A LOT OF THINGS ON THE TABLE SO YOU HAVE THINGS TO GIVE AWAY.

SO WHAT YOU'RE SEEING IS IF IT'S NOT ON THE TABLE YOU CAN'T GIVE IT AWAY, SO YOU DON'T WANT TO START WITH YOUR BEST FIRST OFFER AND I DON'T THINK SOCIAL IMPACT WHATEVER IT IS TAX.

>> THE BEST PART OF EVERY END OF SESSION IS THE EXTREME RIGHT WING AND EXTREME LEFT WING DO THEIR BEST TO SABOTAGE THEIR OWN PARTY'S CHANCES AND THIS WEEK THE EXTREME LEFT WING WON BECAUSE WHAT ARE THEY DOING?

PROPOSING AT A TIME AFTER WE JUST HAD A 40% INCREASE IN THE GENERAL FUND THEY'RE COMING OUT AND PROPOSING TAX INCREASES, NOT EVEN GOVERNOR WALZ WAS PROPOSING THIS STUFF.

SO, NO, WE'RE NOT GOING TO HAVE A FIRST IN THE NATION SOCIAL MEDIA TAX INCREASE, BUT WE ARE GOING TO CUT SPENDING AND THAT WILL BE A GOOD THING.

>> I'M BRINGING IT UP.

>> OH, NO.

>> THEY CAN TRY TO RAISE REVENUE OFF SOCIAL MEDIA WHICH IS BILLIONS OF DOLLARS A YEAR AND THEY CAN TRY TO REGULATE IT.

BUT THEY CAN'T OFF OF SPORTS BETTING PLATFORMS AND REGULATE SPORTS BETTING, I'M JUST SAYING THE IRONY THERE.

LET'S GET IT DONE!

>> THAT'S ACTUALLY TRUE.

>> IT IS TRUE, ONE DAY.

>> WE HAD A STUDY OUT OF THE SENATE AND THAT IS -- >> Cathy: THIS IS GOING NOWHERE THIS SESSION.

>> WELL, IT APPEARS TO BE SO BUT IT DOES LOOK LIKE A LOT OF REVENUE WE COULD GET.

>> JUST SAYING.

>> Eric: HOW DOES THIS SET UP THE 2026 CYCLE?

>> EVERYBODY'S JUMPING IN NOW, U.S. SENATE CANDIDATES, NOW WE'VE GOT SENATORS, THERE'S A RACE WITH ANGIE CRAIG STEPPING UP, LIEUTENANT GOVERNOR GOING TO U.S. SENATE, CANDIDATES THAT MAY COME FORWARD TO RUN WITH GOVERNOR WALZ AND OF COURSE THAT PLAYS INTO T, RIGHT?

THOSE FOLKS ARE SORT OF ON THEIR OWN, THEY'RE NOT RUNNING FOR THEIR CAUCUS ANYMORE, THEY'RE NOT VOTING TOTHEIR CAUCUS, THEY'RE VOTING FOR WHATEVER THE NEXT POSITION IS THAT THEY'RE LOOKING AT WHICH ALSO ADDS TO THIS, AS IF THIS SESSION HAS NOT BEEN BIZARRE ENOUGH ALREADY.

[ LAUGHTER ] >> ABSOLUTELY.

AND EVEN REPUBLICANS, KENDALL QUALS JUMPS IN, I SAW HIM IN THE RATHSKELLER THE OTHER DAY.

>> I'M HEARING FOR GOVERNOR WHICH WOULD BE GREAT.

>> YOU'RE FORGETTING ABOUT THE 800-POUND POWERHOUSE IN CONSERVATIVE CIRCLES, THAT'S OF COURSE THE PEOPLE ARE COMING, ROYCE WHITE.

NO.

[ LAUGHTER ] >> Eric: AREN'T, THE COUNTIES GOING TO BE A BIG LOSER IN THIS SESSION?

>> ABSOLUTELY.

NO, I MEAN, WE'RE TERRIFIED, WE'RE LOOKING AT DOUBLE-DIGIT INCREASES FOR LEVIES.

PEOPLE ARE GOING TO FEEL THAT IF WE DO NOT GET THE PARTNERSHIP AND THE REFORM AND THE ANDATE RELIEF THAT WE NEED AS FROM THE FEDS AND THE STATE.

ABSOLUTELY.

MINNESOTANS NEED TO BE CRYSTAL CLEAR, THEY WILL FEEL THIS IF THE SHIFTS COME AND I JUST WANT TO SAY WE'RE GRATEFUL TO SENATOR HOFFMAN AND ABELER FOR THE COST SHIFTS OF RELIEF N THE HEALTH AND HUMAN SERVICE SIDE THAT THEY PUT IN THE SENATE ON THE STUDY THAT THEY DID FOR THAT, TASK FORCE.

>> Cathy: SCHOOLS LOOK LIKE THEY'RE NOT GOING TO DO VERY WELL EITHER THIS ESSION, WOULD YOU AGREE WITH THAT?

>> WELL, THE SCHOOLS, IT'S HISTORIC FUNDING IN 2023 BUT IT'S THE MANDATES AND THE REQUIREMENTS AND YOU HEARD THE TWO CHAIR -- OR THE VICE CHAIR AND THE CHAIR TALKING ABOUT THAT, SO MUCH OF THE SCHOOLS IS ABOUT, YOU KNOW, UNEMPLOYMENT BENEFITS AND EXTENDED MANDATES AND ALL THE PAID FAMILY MEDICAL LEAVE AND EARNED SICK AND SAFE WHICH IS GOING TO REALLY IMPACT THOSE SCHOOLS AND THAT COULD BE SOLVED WITH SOME POLICY CHANGES AND REFORMS.

>> Cathy: ANGIE CRAIG VERSUS PEGGY FLANAGAN.

>> DON'T FORGET ABOUT MELISA LOPEZ FRANZEN.

PEGGY IS A PROGRESSIVE AND IS GOING TO REALLY PICK UP THAT GROUP.

I'M NOT EXACTLY SURE WHERE MY FORMER LEADER MELISA LOPEZ FRANZEN IS GOING TO LAND BUT SHE'S SMART AND PRACTICING NATTIC SO I THINK IT MAKES IT QUITE THE RACE ON THAT SIDE.

THREE REALLY DISTINCT WOMEN THAT ARE GOING TO.

>> Eric: SERIOUS REPUBLICAN CANDIDATES?

>> NO ONE STEPPED IN, I WOULD LOVE TO SAY WE HAVE AN EQUALLY VARIETY OF CANDIDATES.

WE HAVE A GOOD BENCH BUT NO ONE HAS STEPPED FORWARD AND THERE'S A VARIETY OF REASONS FOR THAT AND WE NEED THEM.