>> "ALMANAC" IS A PRODUCTION OF TWIN CITIES PBS FOR THE STATIONS OF MINNESOTA PUBLIC TELEVISION ASSOCIATION.

>> CATHY: COMING UP ON "ALMANAC," WE'LL LOOK BACK AT COVID FIVE YEARS LATER WITH DR. MIKE OSTERHOLM.

KAOMI LEE TAKES US UP TO THE BORDER FOR SOME FUN OUTDOOR WINTER RECREATION.

AND POLITICS IS ALWAYS ON THE AGENDA, STARTING WITH MARY LAHAMMER AND THE STATE BUDGET FORECAST NEWS.

>> Mary: WE'LL TRY TO MAKE SENSE OF A STATE BUDGET FORECAST FULL OF UNCERTAINTY WITH SO MANY UNKNOWNS FROM THE FEDERAL GOVERNMENT.

>> THERE'S A STORM AT THE FEDERAL LEVEL AND THAT STORM IS DONALD TRUMP.

>> DEMOCRATS IN THE STATE WANT TO GO AHEAD AND BLAME ANYONE ELSE.

>> Mary: THAT'S COMING UP ON "ALMANAC."

♪ >> "ALMANAC" IS MADE POSSIBLE BY MEMBERS OF THIS PUBLIC TELEVISION STATION.

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AND EDUCATION MINNESOTA: THE VOICE FOR PROFESSIONAL EDUCATORS AND STUDENTS THROUGHOUT THE STATE.

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"ONE GREATER MINNESOTA" REPORTING ON "ALMANAC" IS MADE POSSIBLE IN PART BY THE OTTO BREMER TRUST, WHOSE MISSION IS INVESTING IN PEOPLE, PLACES, AND OPPORTUNITIES IN OUR REGION.

>> CATHY: ON TONIGHT'S SHOW, WE'LL TALK WITH MIKE OSTERHOLM ABOUT THE FIVE-YEAR ANNIVERSARY OF COVID AND CURRENT STATE OF PUBLIC HEALTH.

KAOMI LEE TRAVELED TO TWO NORTHERN MINNESOTA BORDER TOWNS TO SEE THEIR UNIQUE TAKE ON WINTER SPORTS.

AND WE WILL HAVE OUR USUAL HEAPING HELPING OF POLITICS.

>> ERIC: AND POLITICS IS WHERE WE START TONIGHT.

THURSDAY'S UPDATED STATE BUDGET FORECAST SHOWS A SHRINKING SHORT-TERM SURPLUS WITH A GROWING LONGER TERM DEFICIT.

WE'LL TALK LIVE WITH TWO KEY HOUSE LEADERS IN JUST A FEW MINUTES.

BUT FIRST, MARY LAHAMMER DIVES INTO THE DETAILS FOR US.

>> THINGS ARE CHANGING ON A DAILY OF BASIS.

>> Mary: THE STATE'S UPDATED FORECAST IS FILLED WITH UNCERTAINTY.

>> IT'S THE UNCERTAINTY.

>> Mary: THE FORECAST DOES NOT INCLUDE ANY OF THE FEDERAL FREEZES, CUTS, OR LAYOFFS.

>> WHAT'S CLEAR IN THIS BUDGET PICTURE IS THERE'S A STORM AT THE FEDERAL LEVEL AND THAT STORM IT DONALD TRUMP.

THIS IS CHAOS.

IT'S NONSENSE.

IT'S NOT HOW YOU RUN ANY BUSINESS, LET ALONE THE FEDERAL GOVERNMENT.

AND THE IMPACT ON STATES IS IMMENSE.

>> Mary: CURRENTLY 1/3 OF THE BUDGET COMES FROM FEDERAL FUNDS.

CUTS AT THE V.A.

PARTICULARLY INCENSES THE GOVERN WHO'S A VETERAN.

>> SOMEBODY WHO'S NERVE SERVED, A BILLIONAIRE, GOES IN WITH AN 18-YEAR-OLD.

>> WALZ IS WELCOMING THE THOUSANDS OF LAID OFF FEDERAL WORKERS TO APPLY FOR POSITIONS IN HIS STATE GOVERNMENT WHERE A SMALL REMAINING SURPLUS COULD SOFTEN THE PROJECTION EASE THAT SHOW A STARK CHANGE IN FUTURE YEARS WITH THE STATE DIPPING INTO DEFICIT.

>> WE ARE NOW AT -- LOOKING AT A $6 BILLION DEFICIT.

DEMOCRATS IN THE STATE AS YOU HAVE HEARD WANT TO GO AHEAD AND BLAME ANYONE ELSE, BUT THIS WAS AN IRRESPONSIBLE SPENDING SPREE.

>> Mary: POSITIVE STATESIDE, WAGES RE EXPECTED TO CONTINUE TO INCREASE ALONG WITH LOW UNEMPLOYMENT AND A TIGHT LABOR MARKET.

MORE FEDERAL RISKS INCLUDE CHANGING TARIFFS, IMMIGRATION, ENERGY, FEDERAL AGENCY CLOSURES, AND CONTRACT CANCELLATIONS.

>> MINNESOTA'S IN GOOD ECONOMIC SHAPE.

THAT'S WHAT WE'RE SEEING IN THE CURRENT BIENNIUM.

WE HAVE A $3.7 BILLION CASH ON HAND SURPLUS.

IN THE BIENNIUM TO COME.

WE HAVE $1.1 BILLION AVAILABLE TO SPEND.

DONALD TRUMP IS WRECKING OUR ECONOMY.

>> TRUMP, MUSK, AND THE REPUBLICANS IN THE HOUSE, NEED TO PULL THEIR HEADS OUT OF THEIR ASSES.

>> Mary: CONTINUES TO OUTPACE EVERYTHING ELSE.

>> DEMOCRATS INCLUDE A BRECKEN MINNESOTA'S BUDGET.

THE DEFICIT THAT THEY ARE LEAVING BEHIND IS GOING TO BE A MESS AND WE ARE GOING TO E CLEANING UM.

THEIR RIDICULOUS SPENDING, OF OVER $18 BILLION OF OUR SPUR PLUS.

>> WE HAVE TO WORK TOGETHER.

I HAVE REQUESTED A STANDING MEETINGS WITH OUR GOVERNOR.

TWO MONTHS AGO, I'M STILL WAITING FOR THOSE TO HAPPEN.

>> YOU KNOW WHEN I'LL MEET WITH REPUBLICAN LEADERS?

WHEN YOU PRODUCE A OIL BUDGET.

>> Mary: THE GOVERNOR CONTINUES TO MAINTAIN AN AGGRESSIVE NATIONAL PROFILE WHILE SAYING HE'S STILL EXPLORING ANOTHER RUN FOR GOVERNOR HERE.

>> I'LL GO WHERE IT NEEDS TO GO.

>> ACTUALLY RESPOND IF I'VE ASKED FOR SOME TYPE OF A STANDING MEETING TO BUILD THAT RELATIONSHIP AS WE WORK TOWARD THAT BALANCED BUDGET.

I WOULD HOPE THAT HIS FIRST PRIORITY WOULD BE THE STATE OF MINNESOTA RIGHT NOW.

>> AS THIS PROCESS IS GOING IN WASHINGTON, D.C., HA IS GREAT TO SEE IS IT'S NO LONGER THE STATUS QUO AND WE'RE ACTUALLY ASKING THOSE TOUGH QUESTIONS OF HOW WE'RE GOING TO BE FUNDING PRIORITIES NOT JUST IN MINNESOTA BUT ACROSS THE COUNTRY.

>> WE NEED TO BE IN EVERY SPACE EVERYWHERE.

SATURDAY NIGHT I WAS UP IN HELENA, MONTANA.

OUR MESSAGE IS ABOUT IMPROVING THE LIVES OF MOODLE CLASS FOCUSES.

DONALD TRUMP CANNOT AND WILL NOT DO THAT.

>> Mary: AS MINNESOTAN KEN MARTIN TAKES OVER AS CHAIR OF THE D.N.Y.

>> YOU CERTAIN HAVE A BIG JOB AHEAD OF YOU AFTER WHAT HAPPENED IN NOVEMBER THAT HAS LEFT A LOT OF DEMOCRATS DESPAIRING.

>> WE NEED TO GET THE D.N.C.

OUT OF D.C.?

NO, IT'S A MIND-SET CHANGE.

IT'S REALLY FOCUSING BACK ON THE STATES.

>> DESPITE CRUSHING DEFEAT IN THE ELECTION, FORMER DEMOCRATIC VICE PRESIDENTIAL NOMINEE TIM WALZ SAYS HE'S OPEN TO A 2028 PRESIDENTIAL RUN.

>> WHO DO YOU THINK THE LEADER OF DEMOCRATIC PARTY IS RIGHT NOW?

>> I THINK THE VOTING PUBLIC RIGHT NOW I WOULD SAY.

WE'RE NOT GOING TO HAVE A CHARISMATIC LEADER RIDE IN HERE AND SAVE US FROM THIS.

♪ ♪ >> ERIC: HERE WITH MORE CONTEXT ON THE STATE BUDGET SITUATION, REPUBLICAN HOUSE MAJORITY LEADER HARRY NISKA, WHO HAILS FROM RAMSEY, MINNESOTA.

AND HOUSE D.F.L.

FLOOR LEADER JAMIE LONG.

HE CALLS MINNEAPOLIS HOME.

LEADER NISKA, DOES THIS FORECAST HAVE ANY IMPACT ON THE NEGOTIATIONS TO COME ON A BALANCED BUDGET THAT YOU HAVE TO DO?

>> WELL ...

IT HAS A LOT -- A HUGE IMPACT.

IT SHOULD HAVE A HUGE IMPACT ON HOW WE THINK ABOUT THE FUTURE OF TATE GOVERNMENT, HOW WE LOOK AT WHAT WE'VE DONE IN THE PAST COUPLE OF YEARS AND HOW WE NEED TO CHANGE DIRECTION.

REMEMBER, WE HAD AN $18 BILLION SURPLUS, A RECORD SURPLUS, JUST TWO YEARS AGO.

NOW WE'RE LOOKING AT A $6 BILLION EFICIT IN JUST A FEW SHORT YEARS.

THAT'S A PRETTY SERIOUS PROBLEM, BUT OUR FISCAL HOUSE AND IT SHOWS A PRETTY SERIOUS IMBALANCE IN THE WAY OUR STATE ECONOMY IS GOING.

OUR GOVERNMENT IS TOO BIG AND OUR PRIVATE ECONOMY IS BEING STIFLED BY IT.

>> Eric: THESE ARE PROJECTIONS 28 MONTHS OR SO OUT.

AND I WONDER IF YOU CAN JUST DEAL WITH THIS YEAR'S BUDGET, KICK THE CAN DOWN THE ROAD AND IN THE 2026 SESSION DEAL WITH THE OUTYEARS AT THAT POINT?

>> WELL, WE HAD RESPONSIBLE BUDGETS THE LAST TWO YEARS AND THAT'S PROVE YENL BECAUSE WE HAVE $3.7 BILLION CASH ON HAND.

WE HAVE $3.5 BILLION IN RESERVES, THE LAWEST BUDGET RESERVES EVER.

>> Eric: NOBODY WANTS TO USE THAT.

>> BUT WE HAVE THAT AVAILABLE FOR US.

THE BIGGEST RISK RIGHT NOW TO OUR BUDGET IS DONALD TRUMP AND THAT IS BECAUSE WE HAVE SEEN THE TWO BIGGEST CHANGES FROM THE NOVEMBER FORECAST WERE A RISE IN INFLATION AND A DECREASE IN THE PROJECTED ECONOMIC GROWTH, AND NOW WE HAVE CONGRESSIONAL REPUBLICANS SAYING THAT THEY WANT TO CUT MEDICAID WHICH COULD HAVE A $1.5 BILLION IMPACT PER YEAR ON OUR STATE BUDGET.

>> Cathy: REPRESENTATIVE, HOW ARE YOU UGOING TO -- THERE'S A LOT OF FINGER POINTING HERE OBVIOUSLY AND- POLITING HERE OBVIOUSLY AND- POLITICA HERE OBVIOUSLY AND- POLITICAL ERE OBVIOUSLY AND- POLITICAL POE OBVIOUSLY AND- POLITICAL POINOBVIOUSLY AND- POLITICAL POINTSVIOUSLY AND- POLITICAL POINTS BOUSLY AND- POLITICAL POINTS BEISLY AND- POLITICAL POINTS BEINGY AND- POLITICAL POINTS BEING MAND- POLITICAL POINTS BEING MADD- POLITICAL POINTS BEING MADE IN THE PROCESS.

BUT HOW TO PLAN TO BUSH-WHACK YOUR WAY THROUGH THE UNCERTAINTY?

>> THE DEMOCRATS HAVE A TRUMP DEFLECTION STRATEGY.

THEY WANT TO DISTRACT FROM THE FACT THAT WE WENT HAVE A $18.5 BILLION SURPLUS TO NOW JUST A MAYBE $3 BILLION OF CASH AND WE'RE BLEEDING CASH.

THAT'S A BIGGER PROBLEM ND IT'S FRANKLY SENATOR OF A CERTAINTY THAN WHAT'S GOING ON, COMING FROM WASHINGTON.

IF WE DO SEE SOME CUTS FROM WASHINGTON, IT'S GOING TO BE DWARFED BY THE BLEEDING OF CASH THAT'S CAUSED BY THE MASSIVE OVERSPENDING COMPARED TO OUR REINHARDT THAT'S COMING IN.

DRIVEN BY MINNESOTA POLICY.

WE'RE ANOTHER FEDERAL PUNDITS.

WE RE STATE LAWMAKERS.

WE HAVE TO DEAL WITH THE SITUATION AS IT COMES TO US.

AND THE SITUATION AS IT COMES TO US IS THAT OUR GOVERNMENT HERE IS TOO BIG.

AND OUR REINHARDTS ARE NOT KEEPING UP WITH IT AND A LOT -- >> Cathy: BUT EVEN THE BUDGET FORECASTERS THIS WEEK WERE SAYING THERE IS THIS DEFINITE UNCERTAINTY AND IT'S REALLY HARD, BUSINESSES DON'T EVEN KNOW WHAT TO DO WITH THIS IN TERMS OF THEIR BUDGETING.

>> THERE IS UNCERTAINTY.

THERE'S ALWAYS UNCERTAINTY AND WHAT THEY SAID, EVEN SETTING ASIDE THAT UNCERTAINTY IS, WE HAVE A STRUCTURAL IMBALANCE DRIVEN BY MINNESOTA POLICY AND IT'S GROWING, A GROWING STRUCTURAL IMBALANCE.

IT'S $3 BILLION STRUCTURAL DEFICIT NEXT BUDGET CYCLE.

AND THEN $6 BILLION THE CYCLE AFTER THAT.

THAT'S THE REAL PROBLEM.

THAT'S THE CERTAINTY THAT WE HAVE TO DEAL WITH AT OUR LEVEL.

AND THEN WE HAVE TO LOOK AT WHAT COMES DOWN FROM THE FEDERAL -- >> Cathy: AND REPUBLICANS WERE WARNING YOU ALL ABOUT THIS, THIS STRUCTURAL DEFICIT.

THAT WAS EVEN A COUPLE SESSIONS AGO WHEN THEY WERE KIND OF SOUNDING THE ALARM.

>> REPUBLICANS WANTED TO GIVE MORE MONEY AWAY TO THE WEALTHIEST MINNESOTANS WHICH WOULD HAVE MADE OUR BUDGET SITUATION WORSE RIGHT NOW.

WE CERTAINLY HAVE LONG-TERM CHALLENGES AND THAT'S DUE TO OUR DEMOGRAPHIC CHANGES.

BUT FOR THIS BIENNIUM, WE HAVE A $456 MILLION SURPLUS RIGHT NOW.

BUT WE HAVE THESE THREATS COMING FROM THE FEDERAL GOVERNMENT IGHT NOW AND THAT'S WHAT WE'RE GOING TO HAVE TO DEAL WITH THIS YEAR.

REPRESENTATIVE NISKA SAID HE'D LIKE TO SEE OUR GOVERNMENT SHRINK.

I'M CURIOUS IF HE SUPPORTS THE PROPOSALS COMING OUT OF CONGRESS TO CUT $1.5 BILLION A YEAR OUT OF OUR BUDGET WHICH HELPS ONE IN FOUR MINNESOTANS.

>> WHAT THEY'RE TALKING ABOUT IN WASHINGTON IS TRYING TO FIND EFFICIENCIES AND RID OUT FRAUD.

IN THE FEDERAL GOVERNMENT, THERE'S -- THE FEDERAL BUREAUCRACY JUST LIKE THE STATE BUREAUCRACY UNDER D.F.L.

CONTROL IS WAY TOO BIG, AND MINNESOTANS, AMERICANS, ACROSS THE BOARD, KNOW THAT WE NEED TO FIND SOME REFORMS AND SOME SAVINGS AT THE FEDERAL LEVEL.

AND AT THE STATE LEVEL.

THE FEDS ARE STILL WORKING OUT HOW THAT'S GOING TO WORK.

WE'LL TAKE THAT AS IT COMES.

BUT THE FACT OF THE MATTER IS, WE NEED A MORE IBRANT PRIVATE ECONOMY IN MINNESOTA, ONE THAT'S NOT STIFLED BY THE REGULATION, THE GROWTH IN STATE GOVERNMENT.

HUNDREDS OF F.T.E.s, FULL-TIME EMPLOYEES, THE STATE BUREAUCRACY UNDER THE DFL TRIFECTA.

WE'VE GOT TO GET THAT UNDER CONTROL.

>> Eric: WE'LL KNOW MUCH MORE TUESDAY NIGHT AFTER THE SPECIAL ELECTION IN DISTRICT 40B, SHOREVIEW, ROSEVILLE, AND IS THAT GOING TO DETERMINE HOW THE -- LIKE, THE BUDGET TARGETING NEGOTIATIONS ARE GOING TO GO AND THE END OF SESSION NEGOTIATIONS DEPENDING UPON WHO WINS THERE?

>> WELL, IT SURE WILL.

WE CERTAINLY -- >> Eric: SEEMS LIKE A D.F.L.

THE DISTRICT.

>> WE WON IT BY 30 POINTS LAST TIME.

SO WE FEEL GOOD.

BUT WE'RE WORKING HARD.

BUT OUR EXPECTATION IS WE'LL DO WELL.

IF YOU'RE IN THAT DISTRICT, PLEASE VOTE.

BUT WE'RE GOING TO HOPEFULLY BACK TO A TIE.

>> Eric: WHAT HAVE YOU ACCOMPLISHED AS REPUBLICANS IN THE HOUSE WITH THE 67 THAT YOU HAVE.

YOU CAN'T PASS A BILL UNTIL YOU GET 68.

WHAT HAVE YOU ACCOMPLISHED SO FAR?

>> THERE ARE SOME BILLS WE HAVE PASSED.

FOR THINGS WE THINK ARE COMMON SENSE.

AND WE HAVEN'T GOT DEMOCRATIC SUPPORT ON SOME OF THOSE BILLS, BUT WE HAVE WHAT DONE IS WE'VE SET UP -- FIRST OF ALL, CONVERSATIONS ACROSS THE AISLE ABOUT EITHER SCENARIO, WHETHER WE'RE 8-66 OR 67-67.

ABOUT A LOT OF THOSE POLICY ISSUES.

AND WE'VE TRIED TO MAKE -- MOVE THE BALL FORWARD.

WE DO UNDERSTAND THAT EITHER WAY, WHETHER IT'S REPUBLICAN MAJORITY OR A TIE IN THE HOUSE, WE'RE GOING TO HAVE TO WORK TOGETHER, WITH A D.F.L.

SENATE.

CLOSELY DIVIDED HOUSE EITHER WAY AND A D.F.L.

GOVERNOR.

WE HAVE TO GET A BUDGET PASSED AND WE'RE GOING TO HAVE TO WORK ACROSS THE AISLE.

>> NOT A LOT.

>> Eric: YOU WERE LATE TO THE GAME.

YOU GUYS WERE NO-SHOWING EARLY.

>> WE HAD TO PROTECT THE VOTERS AND E DID.

BUT I THINK WE ARE AT A PLACE WHERE WE COULD HAVE GOTTEN STARTED EARLY, WE HAD A SHOOT FIRST BILL WHICH WOULD HAVE MADE GUN VIOLATION PREVENTION WORSE, AND MONDAY WE HAVE A BILL TO TRY TO DELAY PAID AND FAMILY MEDICAL LEAVE WHICH IS HELPING PEOPLE WHO ARE HAVING NEW BORN KIDS, THAT'S EXTREMELY POPULAR WITH MINNESOTANS, THESE ARE THINGS THAT ARE EATING UP FLOOR TIME WHEN WE COULD BE WORKING TOGETHER ON A BIPARTISAN BASIS ON THE BUDGET.

>> Cathy: SO FINAL QUESTION.

AND I'M WONDERING OF COURSE AS YOU HEAD INTO THE FINAL TWO AND A HALF MONTHS OF SESSION, RIGHT, SO MIGHT YOU STILL HAVE TO PLAN IN CASE FEDERAL MONEY GOES AWAY?

HOW DO YOU DO THAT?

I HAVEN'T HEARD N ANSWER REALLY.

>> YEAH, I THINK THAT WE'RE LOOKING AT ALL CONTINGENCIES, AND T'S CERTAINLY POSSIBLE THAT HERE WOULD NEED TO BE ADJUSTMENTS TO THE BUDGET IF THINGS CHANGE FROM THE FEDERAL GOVERNMENT.

OBVIOUSLY THAT'S ALWAYS THE CASE, RIGHT?

WE NEVER KNOW IF A FLOOD IS GOING TO HAPPEN, IF SOME OTHER KIND OF NATURAL DISASTER IS GOING TO HAPPEN.

IF FEDERAL POLICY CHANGES.

AND THAT AFFECTS MINNESOTA STATE GOVERNMENT.

WE WOULD HAVE TO ADJUST AS STATE POLICY MAKERS NO MATTER WHAT.

>> Eric: GOT TO RUN.

TO BE CONTINUED.

YOU GUYS WERE NICE TO COME OVER.

THANKS VERY MUCH.

>> Cathy: GOOD LUCK.

>> I'M A MARATHON RUNNER AND THERE IS AN NDURANCE IN POLITICS AND IN GOVERNANCE.

AND ESPECIALLY IN A 14-DAY AND THEN A 28-DAY CAMPAIGN.

YOU JUST HAVE TO BE WILLING TO GO.

>> Mary: YOU COACH TOO?

>> YEAH, I COACH MIDDLE SCHOOL TRACK AND CROSS COUNTRY AND WITH MIDDLE SCHOOLERS, IT'S YOU HAVE TO FIGURE OUT ALL SORTS OF DIFFERENT WAYS F MOTIVATING.

THAT'S THE SAME IN GOVERNANCE AND POLITICS OF HOW CAN WE BRING FOLKS TOGETHER TO PULL FOR A COMMON GOAL.

EACH OF THE SENATORS IN THE D.F.L.

ARE THE 34TH VOTE -- >> Mary: BUT YOU LITERALLY WERE THE 34.

>> FAIR POINT.

IT'S AN FRG TIME TO BE HERE.

WE SEE HOW WE'RE ALL WORKING TOGETHER ON BOTH SIDES OF THE AISLE AND WE'RE GOING TO FIND COMMON PIECES.

WE REALLY HAVE TO DO THAT THIS YEAR TO MOVE AHEAD OUR AGENDA IN MINNESOTA.

♪ >> CATHY: WE'RE GOING TO SHIFT OUR FOCUS NOW TO WHAT HAS BEEN HAPPENING IN WASHINGTON, D.C. AND HOW THAT MIGHT IMPACT MINNESOTANS.

PRESIDENT TRUMP SPENT PART OF THIS WEEK IMPOSING STIFF TARIFFS ON CHINA, MEXICO, AND CANADA... AND THEN WALKING BACK OR PAUSING SOME OF THEM.

HOW MIGHT THESE TARIFFS IMPACT MINNESOTANS?

LET'S ASK LOUIS JOHNSTON.

HE TEACHES ECONOMICS AT THE COLLEGE OF ST. BENEDICT AND ST. JOHN'S UNIVERSITY.

IN COLLEGEVILLE.

MINNESOTA.

GOOD TO SEE YOU AGAIN.

>> THANK YOU.

>> Cathy: SO IT LOOKS LIKE WHEN -- WE'LL JUST TAKE CANADA AND THE U.S.

I MEAN, IT LOOKS LIKE THE BIGGEST IMPACTS MIGHT BE -- INCLUDE MEXICO IN THAT TOO -- THE AGRICULTURAL SECTOR?

>> DEFINITELY.

SO BASICALLY WE'RE GOING TO PUT TARIFFS ON ANYTHING COMING OUT OF CANADA.

SO, FOR EXAMPLE, 90% OF THE OATS THAT WE CONSUME IN THE UNITED STATES COMES FROM CANADA.

SO IF YOU'RE EATING A CHEERO, IT'S PROBABLY CANADIAN OATS.

OIL FROM ALBERTA, PLACES LIKE THAT.

ALUMINUM, WE'RE THE -- THAT'S THE BIGGEST SUPPLIER OF ALUMINUM FOR THE UNITED STATES.

SO THAT'S ALL GOING TO GET MORE EXPENSIVE.

CANADA IN TURN IS SAYING, FINE, YOU'RE GOING TO DO THAT, WE'RE GOING TO START TAXING SOME OF STUFF THAT WE IMPORT INTO YOUR COUNTRY WHICH IN PART IS AGRICULTURAL PRODUCTS.

ANOTHER ONE THAT I DIDN'T MENTION THERE IS LUMBER.

FINISHED LUMBER PRODUCTS ND THINGS LIKE THAT.

SO WHAT REALLY AMAZES ME IS THAT WE HAVE BEEN TRYING TO LOWER THESE TRADE BARRIERS FOR THE LAST 70 YEARS, ACROSS THE BORDER BETWEEN CANADA AND THE UNITED STATES.

AND NOW WE'RE BLOWING THE WHOLE THING UP.

>> Eric: IS THE UNCERTAINTY PART OF A NEGOTIATING STRATEGY ON THE PART OF THE ADMINISTRATION?

>> WELL, THAT'S MY GREATEST FRUSTRATION IS I WOULD LIKE TO KNOW WHAT IS THE POINT F DOING THIS SO THAT WE CAN ANALYZE IT.

IS IT A NEGOTIATING STRATEGY?

IS IT TO RAISE REINHARDT?

IS IT TO PROTECT JOBS?

I HAVEN'T HEARD A COHERENT RESPONSE TO THAT QUESTION.

IT SEEMS TO BE ALL OF THE ABOVE.

>> Cathy: AND IT MATTERS BECAUSE THE UNCERTAINTY AROUND ALL THIS.

>> EXACTLY, SO BUSINESSES ARE KIND OF LIKE FREEZING UP RIGHT NOW.

THEY'RE DELAYING WHETHER THEY'RE GOING TO BUILD NEW BUILDINGS, WHETHER THEY'RE GOING TO HIRE PEOPLE.

THEY'RE THINKING ABOUT THEIR FUTURE PLANS AND STAYING, LET'S JUST STAND PAT.

AND THAT'S GOING TO AFFECT EMPLOYMENT, THAT'S GOING TO AFFECT WAGE RISES.

IT'S GOING TO AFFECT EVERYTHING IN THE ECONOMY.

>> Eric: ARE WE PROTECTED A LITTLE BIT IN THAT WE'RE KIND OF NET CONTRIBUTORS TO THE FEDS?

WE DON'T HAVE A BUNCH OF MONEY COMING BACK?

ARE WE A LITTLE BIT CUSHIONED?

>> IF YOU'RE THINKING ABOUT THE STUFF THAT THE FEDERAL GOVERNMENT MIGHT CUT OFF, YEAH, WE DEFINITELY IN A GOOD POSITION THAT WAY.

BUT, YOU KNOW, AS YOU WERE MENTIONING IN THE EARLIER SEGMENT, MEDICAID, FOR EXAMPLE, IS A REALLY IMPORTANT FLOW OF MONEY OUT OF WASHINGTON, BECAUSE IT'S A PROGRAM THAT'S JOINTLY RUN BY THE STATES AND THE FEDERAL GOVERNMENT.

AND WE'RE COUNTING ON A CERTAIN AMOUNT OF MONEY COMING AND IF THAT DOESN'T COME THAT'S GOING TO HURT THE BUDGET.

>> Cathy: WE HAVE A LARGE HEALTHCARE INDUSTRY HERE IN THE STATE OF MINNESOTA.

HOW MIGHT THAT BE AFFECTED BY ANY OF THIS?

>> WELL, IT COULD BE HURT A LOT OF WAYS.

SO, FOR EXAMPLE, THE MEDICAID CUTS AND THINGS LIKE THAT, THAT AFFECTS THINGS LIKE MEDICAL DEVICES THAT MIGHT BE IMPLANTED IN PEOPLE.

ALL THAT KIND OF STUFF, KIDNEY DIALYSIS, ALL OF THOSE KINDS OF THINGS, NURSING HOMES, THAT'S THE ONE I'M REALLY WORRIED ABOUT IS THAT IT'LL AFFECT FUNDING FOR NURSING HOMES, AND SO THAT AFFECTS NURSING HOME EMPLOYMENT, INCOME HAT'S COMING INTO SMALL RURAL -- SMALL TOWNS AND RURAL AREAS.

THAT'S KIND OF MY BIG WORRY.

>> Eric: THE PRESIDENT DID SAY, QUOTING HIM, THERE WILL BE A LITTLE DISPUSHANCE, BUT WE'RE OKAY WITH THAT.

IT WON'T BE MUCH.

>> I DON'T AGREE WITH THAT.

I THINK IT'S GOING TO BE A REALLY BIG DISTURBANCE, IF YOU ACTUALLY DO THIS.

THAT'S THE PROBLEM, THOUGH.

ARE YOU CTUALLY GOING TO IMPOSE THESE TARIFFS OR NOT.

HE SEEMS TO COME UP TO THE EDGE AND STOP.

>> Cathy: OR FLIP FLOP?

>> >> Eric: THE FED AND INFLATION?

>> THE FED RIGHT NOW IS SAYING THAT THEY MIGHT CUT INTEREST RATES TWICE OVER THE COURSE OF THE YEAR.

I'M STARTING TO THINK THEY MIGHT NOT CUT AT ALL, GIVEN THE WAY THE INFLATION PICTURE IS, BECAUSE WITH THE UNCERTAINTY THAT'S GOING ON, WITH INFLATION CERTAINLY NOT GOING ON AND PERHAPS GOING UP, IT'S STEADY AS SHE GOES T THE FED RATHER THAN TRYING TO ADD TO THE UNCERTAINTY.

>> Cathy: GOVERNOR WALZ TALKED WITH THE ONTARIO PREMIERE EARLIER THIS WEEK.

IS THERE ANYTHING THAT COULD BE DONE ON THE IS IT BE DONE ON THE IS STATE END?

>> NOT REALLY.

BECAUSE I MEAN, THAT GOES BACK TO THE CONSTITUTION.

FOREIGN TRADE IS GOVERNED BY THE FEDERAL GOVERNMENT.

AND ONE OF THE THINGS THAT'S ACTUALLY INTERESTING IN ALL OF THIS IS THAT U.S.-CANADA TRADE IS BEING RESTRICTED.

ONE OF THE FUNNY CONSEQUENCES OF IT IS THAT THEY DON'T NECESSARILY HAVE FREE TRADE ACROSS CANADIAN PROVINCES, THEY'RE TALKING ABOUT DOING IT NOW SO THAT THEY CAN TRADE MORE FREELY SINCE THEY CAN'T COUNT ON US.

>> Eric: 30 SECONDS ON THE STOCK MARKET.

>> IT'S BEING HURT BY THIS UNCERTAINTY AND THESE ARTIFICIAL INTELLIGENCE TECHNOLOGIES DON'T SEEM TO BE AS EXPENSIVE AS WE THOUGHT THEY WERE GOING TO BE, AND SO THE CHIP COMPANIES THAT THOUGHT THEY WERE GOING TO MAKE A LOT OF MONEY, THEIR STOCK PRICES RE STARTING TO GO DOWN.

>> Cathy: GOOD TO SEE YOU.

♪ >> ERIC: CONTINUING THE THEME OF FEDERAL ACTION IMPACTING MINNESOTA, WE'RE GOING TO TURN OUR ATTENTION NOW TO MEDICAID.

NO WIDESPREAD CUTS TO THE PROGRAM HAVE HAPPENED YET, BUT A BUDGET RESOLUTION PASSED BY THE U.S. HOUSE OF REPRESENTATIVES HAS RAISED GREAT CONCERN.

JOHN CONNOLLY IS MINNESOTA'S DEPUTY COMMISSIONER OF HUMAN SERVICES AND STATE DIRECTOR OF MEDICAID.

WELCOME TO "ALMANAC."

WE SHOULD SAY, IT'S COMPLICATED, RITE OFF THE BAT.

MEDICAID IN MINNESOTA IS MEDICAL ASSISTANCE.

>> THAT'S RIGHT.

>> Eric: WHAT -- ARE YOU CAPTURED BY THIS UNCERTAINTY ALONG WITH EVERYBODY ELSE?

>> WE CERTAINLY ARE.

SO THERE'S A LOT OF UNCERTAINTY WITH RESPECT TO WHAT MAY HAPPEN AT THE FEDERAL LEVEL.

THERE IS A BUDGET TARGET AND A HOUSE BUDGET RESOLUTION THAT IS $880 BILLION.

OVER ROUGHLY A DECADE.

AND THAT TRANSLATES INTO ROUGHLY A BILLION AND A HALF DOLLARS TO CUTS IN MINNESOTA JUST DOING BACK OF THE ENVELOPE MATH.

AND THAT COULD MEAN REAL CUTS.

>> Cathy: WE SHOULD SAY, TOO, THAT THE PROGRAM IS A FEDERAL AND STATE ROGRAM.

HOW DO YOU EXPLAIN THIS TO PEOPLE WHO MIGHT NOT UNDERSTAND?

>> THAT'S CORRECT.

SO THERE'S CONTRIBUTION BOTH FROM THE STATE IN TERMS OF THE STATE BUDGET AND ALSO FEDERAL MATCHING FUNDS AS THEY'RE CALLED.

IT'S A SHARED RESPONSIBILITY BETWEEN THE STATE AND THE FEDERAL GOVERNMENT TO PROVIDE HEALTH SERVICES TO ROUGHLY -- OR HEALTH COVERAGE I SHOULD SAY TO ROUGHLY ONE IN FOUR MINNESOTANS.

>> Cathy: AND WHO ARE THESE PEOPLE SPECIFICALLY?

BECAUSE I THINK THERE'S ALSO SOME STEREOTYPES.

>> SURE, SO IT'S A LARGE PROGRAM.

IT COVERS ROUGHLY 1.3 MILLION MINNESOTANS INCLUDING MINNESOTACARE, UR BASIC HEALTH PROGRAM.

AND IT COVERS OLDER ADULTS, PEOPLE 65 AND ABOVE WHO NEED LONG-TERM SERVICES AND SERVICES.

IT COVERS CHILDREN, ROUGHLY 40% OF KIDS IN MINNESOTA.

IT ALSO COVERS A LOT OF PARENTS AND PERINATAL SERVICES, FOR EXAMPLE, BEFORE AND AFTER BIRTH.

>> Eric: DOES THE DEPARTMENT HAVE ANY RESERVES ON HAND THAT COULD HELP CUSHION THE BLOW IF IT COMES TO THAT?

>> SO WE WOULDN'T BE ABLE TO IN THE STATE BUDGET TO COVER A GAP OF THAT MAGNITUDE.

THAT'S ANOTHER SOMETHING THAT THE STATE WOULD BE ABLE TO COVER.

>> Eric: THERE ISN'T A POT OF MONEY SITTING OUT THERE THAT YOU HAVE IN A RESERVE AS A DEPARTMENT OF HUMAN SERVICES?

>> NO, NOT THAT I'M AWARE OF.

>> Eric: OKAY.

>> Cathy: WHAT COULD YOU THINK OF WHAT THE PROFESSOR BROUGHT UP FOR THE POTENTIAL FOR RURAL NURSING HOMES TO HAVE ISSUES IF, AGAIN, THERE ARE CUTS COMING DOWN THE PIKE FOR MEDICAID?

WHAT ARE HE DOMINOES HAT COULD FALL?

>> YOU KNOW, THAT'S ABSOLUTELY AN POINT POINT.

MEDICAID IS THE LARGEST PAYER OF LONG-TERM SERVICES AND SUPPORTS FOR PARTICULARLY OLDER ADULTS AND ALSO PEOPLE WITH STABILITIES.

SO IT DOES PRESENT A TREMENDOUS RISK TO SKILLED NURSING FACILITIES, NURSING HOMES.

AND OTHER TYPES OF LONG-TERM SERVICES AND SUPPORTS IN THE COMMUNITY.

>> Cathy: SO I'M BETTING THAT THE PHONE LINES ARE BURNING UP AND PROBABLY A LOT OF EMAILS ASKING, SO WHAT DO WE DO?

SO WHAT'S YOUR GUIDANCE TO SOME OF THE PROGRAMS AND SOME OF THE FACILITIES AND INDIVIDUALS YOU'RE DEALING WITH?

>> WELL, I THINK ONE OF THE FIRST IMPORTANT THINGS TO DO IS JUST EXPLAIN THE IMPACT OF THE PROGRAM, WHO IS COVERED BY IT, WHAT SERVICES IT COVERS, THE KIND OF NEEDS THAT EOPLE HAVE AND THE PROGRAM AND ITS MISSION.

SO I THINK AGAIN, ONE IN FOUR MINNESOTANS IS COVERED.

IT COVERS SOME REALLY ESSENTIAL SERVICES FOR OLDER ADULTS, SENIORS, KIDS.

AND TOES WHO ARE PREGNANT.

SO THAT'S A REALLY IMPORTANT PART OF WHAT WE NEED TO COMMUNICATE.

>> Cathy: AS THE STATE, THOUGH, IS LOOKING AT CRAFTING A NEW TWO-YEAR BUDGET, WHAT ARE THE CONTINGENCIES, THOUGH, AGAIN?

WE'RE NOT REALLY HEARING ANY PLAN FROM THE STATE AT THIS POINT?

WHAT ARE YOU SAYING TO YOUR STAFF EVEN SOME >> YEAH, IT'S EXTREMELY UNCERTAIN.

I THINK WITHOUT UNDERSTANDING WHAT EXACTLY THE BUDGET CUTS MIGHT BE OR WHAT SORT OF REDUCTION IN FEDERAL FUNDING MIGHT BE, IT'S VERY DIFFICULT TO PLAN FOR THAT SCENARIO.

I THINK, AGAIN, THE MOST IMPORTANT THING WE COULD DO IS JUST COMMUNICATE.

WHAT'S REALLY AT RISK AND THE IMPORTANCE OF PROGRAM AND WHO CAN COVERS.

>> Eric: CAN YOU WRING SOME SAVINGS OUT OF WASTE, FRAUD, AND ABUSE.

>> SO CERTAINLY I THINK THERE'S ALWAYS OPPORTUNITY TO INCREASE AND ENHANCE PROGRAM INTEGRITY ACTIVITY.

THE GOVERNOR'S BUDGET INCLUDES AN ANTIFRAUD PACKAGE USING THINGS LIKE A.I., INCREASED OVERSIGHT AND REGULATORY ACT.

SO THOSE ARE CERTAINLY THINGS THAT WE WOULD LOOK AT.

BUT THAT KIND OF ADVANCEMENT OR THOSE SORT OF POLICY PROPOSALS IN THE BUDGET WOULD NOT COVER A $1.5 BILLION SHORTFALL.

THERE ISN'T THAT LEVEL OF FRAUD OR WASTE OR ABUSE IN THE PROGRAM.

THAT REALLY REPRESENTS REAL SERVICES TO PEOPLE WHO NEED THEM.

>> Eric: YOU'LL BE CENTER STAGE DURING THE BUDGET NEGOTIATIONS AT THE STATE LEVEL COMING UP.

SO -- >> YES, THAT WILL COME SOON.

>> Eric: ALL THE BEST.

THANKS FOR COMING OVER.

>> YOU BET.

GLAD TO BE HERE.

>> Eric: THANK YOU.

♪ >> MARK: YOU KNOW WHAT PEOPLE HATE THE MOST ABOUT GOING TO THE DOCTOR.

GETTING YELLED AT FOR NOT TAKING YOUR MEDICINE.

NO, SOME PEOPLE WON'T COME BECAUSE THEY KNOW WE'LL HAVE TO GET ON A SCALE AND GET WEIGHED.

LOTS OF PEOPLE HATE THIS.

ESPECIALLY AFTER THE HOLIDAYS.

NOBODY WANTS TO BE WEIGHED IN THE SPRING.

WE ALL HAVE EXCUSES LIKE, WELL, I'M CARRYING MY WALLET, AND MY KEYS, THEN YOU'RE UP ABOUT TEN POUNDS WHICH IS THE SAME AS A THOUSAND KEYS OR MINIATURE SCNAUZER.

SO THEN YOU START TAKING THINGS OFF, LIKE YOUR COAT, HAT, WATCH, PRETTY SOON YOU'RE WEARING ALSO IN THE ALLWAY.

CHECKING WEIGHT HAS ALWAYS BEEN A ROUTINE THING, LIKE SHOWING YOUR TICKET AT THE MOVIES.

THEY ALWAYS CHECK YOUR BLOOD PRESSURE AND TEMPERATURE TOO, BUT NO ONE EVER GETS EMBARRASSED ABOUT THEIR TEMPERATURE.

BUT, REALLY, THEY’RE JUST NOT LOOKING FOR A FEW EXTRA POUNDS.

THEY’RE LOOKING FOR A BIG CHANGE THAT COULD BE RELATED TO DIABETES OR OTHER PROBLEMS.

THE WORST PART IS, SOME PEOPLE AVOID GOING TO THE DOCTOR JUST SO THEY WON'T GET WEIGHED.

THEY THINK THE DOCTOR WILL SHAME THEM, AND THEY GET TESTY.

IT’S LIKE, "YOU'RE OVERWEIGHT."

"YEAH, WELL, YOU'RE LOSING YOUR HAIR."

SO NOW SOME CLINICS ARE DROPPING THE STANDARD WEIGH-IN FOR PATIENTS.

THIS IS REVOLUTIONARY, LIKE NOT ASKING FOR AN INSURANCE CARD.

IF THEY REALLY NEED TO KNOW, THEY ASK PERMISSION.

MAYBE THE BEST WAY TO HANDLE IT WOULD BE TO HAVE THE DOCTOR GET ON THE SCALE FIRST, LIKE, "I WILL IF YOU WILL."

THEN YOU'LL HEAR SOME EXCUSES.

"YEAH, WELL, I HAVE A LOT OF HEAVY MEDICAL EQUIPMENT IN MY POCKET, LIKE THIS PEN AND PLASTIC STETHOSCOPE."

I MEAN, IT'S NOT LIKE YOU'RE CARRYING AROUND A C.T.

SCANNER.

AT LEAST THAT MAKES IT FAIR.

GUESS WE'LL SEE WHO WILL BE CANCELING APPOINTMENTS THEN.

♪ >> Eric: PENALTIES MAKE OTHER TEAMS FEAR YOU.

AND NEW BLACK UNIFORMS WILL ENSURE A WINNING RECORD FOR THE NORTH STARS NEXT YEAR.

THAT'LL DO IT!

THAT OR, WELL, A STABLE FRONT OFFICE, GOOD BACK LINES, A COUPLE OF SOUND GOLD TENDERS, WAIT A MINUTE, I'M NOT DONE YET.

A NEW TEAM DOCTOR, SOMEBODY TO CLEAR OUT IN FRONT.

GET JACK CARLSON BACK.

A NEW ZAMBONI DRIVER!

CHEAPER TICKETS!

♪ ♪ >> CATHY: THERE'S NOTHING MORE MINNESOTAN THAN EMBRACING WINTER.

IN THIS NEXT STORY, KAOMI LEE TAKES US TO TWO NORTHERN MINNESOTA TOWNS THAT ARE MAKING THE MOST OF THEIR FROZEN WATERWAYS.

>> Kaomi: THEY MAKE IT LOOK, OH, SO EASY.

TEN-YEAR-OLD COOPER IS A HOCKEY PLAYER IN HOCKEYTOWN, USA.

HE'S A GOALIE WHO HAS BEEN SKATING MORE THAN 2/3 OF HIS YOUNG LIFE.

>> IT'S JUST FUN.

YOU GET TO BE FREE AND WHEN YOU'RE ON THE ICE, FOR ME, IT JUST FEELS LIKE, FOR ONE, I GET TO BE WITH MY FRIENDS.

TWO, LIKE I SAID, EARLIER, I'M FREE.

>> THE KIDS AROUND HERE, ARE THEY BORN WITH SKATES ON?

>> PRETTY MUCH.

AS SOON AS THEY CAN WALK OR MAYBE EVEN BEFORE, THEY GET A PAIR OF SKATES.

>> Kaomi: IN THIS NORTHERN OUTPOST KNOWN FOR -- >> WINDOWS, WALLYESTERDAYS AND HOCKEY.

>> Kaomi: IT'S NO WONDER SKATING AND BEING ON THE IRRRB IS A FAVORITE PAST TIME.

SOME HOCKEY DADS GOT CREATIVE.

>> DURING COVID WHEN EVERYTHING WAS SHUT DOWN, OUR KIDS DECIDED THAT WE NEEDED TO CONNECT A COUPLE OF THE NEIGHBORHOOD RIRVEGS NEIGHBORHOOD RIRVE REPRESENTATI.

>> OLAFSON AND HIS FRIENDS USED THEIR ANGERS TO CLEAR PATHS BETWEEN THE BACKYARD REPRESENTATIVES.

AND IT BEING HOCKEY TOWN, THE BAR WAS HIGH.

A LOCAL COMPANY CHIPPED IN A POWER BRIEWM.

>> WE PROCURED A BUNCH OF SCRAP IRON AND WELDED UP A BIG SCRAPER BLADES.

>> Kaomi: THE DADS THOUGHT, HOW COULD THEY GET THAT SMOOTH HOCKEY SURFACE?

>> WHEN WE FIRST STARTED WE HAD PUMPS THAT WOULD PUMP WATER OUT OF THE RIVER TO FLOOD THE RINK, BUT WHEN YOU GO TO THE ACTUAL HOCKEY RISK, YOU HAVE A HOT WATER FINISH.

AND WE WANT TO SOMEWHAT MIMIC THAT HOCKEY RINK EXPERIENCE.

SO WE DEVELOPED A TANK SYSTEM WITH A "TZAM" BEANO.

WITH A "TZAM" BEAN ZAMBONI.

>> Kaomi: AND THAT'S HOW THE RIVER BEND SKATE PATH WAS BORN.

IT STRETCHES ALONG THE RIVER TO THE MOUTH OF THE LAKE FT WOODS.

THIS YEAR, THEY CLEARED TWO AND A HALF MILES.

>> AT ONE POINT, WE DID GO OVER FIVE MILLS, BUT THAT WOULD BE AIDE WILL THE OF WORK AND WE NOTICE THAT NOT A LOT OF PEOPLE HAD THE STAMINA TO SKATE THE ENTIRE FIVE MILES.

>> Kaomi: AND WAS THAT THE LONGEST SKATING PATH IN THE U.S.?

>> IT WAS AT ONE POINT, WHEN WE WERE AT A LITTLE OVER THAT FIVE-MILE MARKS.

I KNOW THAT GUNFLIPT, THEY'RE ADVERTISING THAT THEY HAVE SIX MILES OF PATH.

SO WE HAVE BEEN CHALLENGED.

GUN GUGUNFLINT, STAY TUNED FOR NEXT YEAR.

>> Kaomi: IT'S A LABOR OF LOVE, AN IDEA THAT SEEMS HERE TO STAY.

THE LONGEST SKATE PATH IN THE U.S., AT LEAST FOR NOW, MIGHT JUST BE ON ANOTHER MINNESOTA BORDER LAKE, GUNFLINT LAKE IN GRAND MARAIS.

>> SO WHEN IT'S FREEZING, THE WATER WILL EXPAND AS IT FREEZES AND YOU'LL HEAR BOOMS AND MOANS AND GROANS, AND IT WAS REALLY LOUD THIS YEAR.

>> Kaomi: GUNFLINT LODGE OWNER JOHN FREDERICKSON SHOWS US THE CRACKLY CLEAR ICE.

THAT MAY BE ICE UNUSUALLY SMOOTH AND PERFECT FOR A SKATE PATH.

>> I THINK IT'S JUST PEOPLE HAVEN'T THOUGHT ABOUT DOING IT.

AND IT'S A LOT OF WORK.

I MEAN, THE REALITY IS, IT TAKES A LOT OF TIME.

IT'S A LOT OF EFFORT AND I'VE GOT A SMALL TRACTOR, YOU KNOW, IT'S A BALANCE TOO BECAUSE YOU'RE ON ICE, SO I CAN'T GET ANYTHING TOO LARGE, BUT YOU WANT TO GET IT LARGE ENOUGH.

SO I GOT A SMALL TRACTOR WITH A SNOW BLOWER AND A DRUSH TO BRO GET OUT AS SOON S POSSIBLE.

>> FREDERICKSON PLOWED SIX MILDS OF PATH.

OUT ON THE OPEN WATER, BORDERS CAN BE A GUESS.

ON ICE, IT'S A LITTLE DIFFERENT.

IN THE LAST FEW WEEKS, ESPECIALLY, HE SEES MORE EYES ARE WATCHING.

WE SAW WHAT I THINK IS A MOST LIKELY A KA IN AD YAIN BORDER PATROL HELICOPTER WHICH WE'VE ONLY SEEN FOR THE LAST FEW WEEKS.

>> Kaomi: THAT HASN'T STOPPED THE FUN.

ABOUT 25 SEVENTH AND EIGHTH GRADERS FROM A LOCAL CHARTER SCHOOL BRAVES THE COLD TEMPS.

12-YEAR-OLD ZAYA HAS BEEN SKATING EVEN BEFORE SHE COULD WALK.

>> I THINK MY ARENTS JUST STRAPPED ME ONTO THEIR BACK.

THE ICE IS THICK EVERYWHERE AND IT WAS KIND OF WINDY, BUT IT GOT BETTER.

>> CONDITION JUST ASSUME THAT EVERYBODY DOES EVERYTHING THAT'S AVAILABLE IN THE AREA, EVEN FROM FISHING AND HUNTING OR CANOEING, THERE'S SOME THAT HAVEN'T DONE IT.

>> Kaomi: THE SKATING WAS FREE.

TEACHER WILLIAM CHOI SAYS IT WAS AN OPPORTUNITY TO TAKE THE CLASSROOM OUTSIDE.

>> WE WERE EXPECTING REALLY HARSH COLD WEATHER, BUT IF WAS GORGEOUS TODAY.

>> IT WAS HER FIRST TIME TO THE SKATE PATH.

>> NEED TO BE OUT IN THE SUNSHINE.

AND SEE THOSE CRACKS, YOU KNOW, THEY'RE TWO FEET DEEP.

IT'S ALMOST EERIE LOOKING DOWN INTO THE WATER.

>> Kaomi: FREDERICKSON SAYS IT'S BEEN A GOOD EXPERIMENT FOR THE LODGE'S 100TH EAR, ONE THAT WILL MOST LIKELY BE BACK NEW YEAR.

♪ >> David: DOES THE WATER TEMPERATURE MATTER?

>> IT REALLY DOESN'T.

JUST HAVING THE WATER ND THE SO SSOAP IS THE POARMT THING.

ONCE IT'S UP AND RUNNING, YOU GET YOUR HANDS WET, THEN YOU DO THE SOAP.

THEN IT BECOMES THE PROCESS.

SO PALM TO PALM.

INTERLACE THE FINGERS.

BACKS OF THE HANDS.

BACKS OF THE HANDS.

THEN WHAT THEY CALL THE MONKEY GRIP WHERE YOU'RE PULLING THE HANDS ACROSS EACH OTHER, AND THEN COMES THE THUMB.

AND THEN THE LAST PART IS THE TIPS OF THE HAND, ACROSS HERE.

NOW, PEOPLE COUNT.

IT'S SUPPOSED TO BE A 20-SECOND THING.

I NEVER COUNT.

THEN FINALLY YOU RINSE.

LET THE WATER DRIP OFF.

THEN YOU DRY.

THE LAST STEP.

♪ ♪ >> CATHY: AS WE JUST NOTED, MINNESOTA'S FIRST CONFIRMED CASE OF COVID-19 WAS FIVE YEARS AGO THIS WEEK.

A LOT HAS HAPPENED IN THE WORLD OF PUBLIC HEALTH SINCE THEN, INCLUDING A FLURRY OF ACTIVITY IN THE FIRST SIX WEEKS OF THE TRUMP ADMINISTRATION THAT HAS MANY HEALTH OFFICIALS CONCERNED.

MIKE OSTERHOLM IS BACK.

HE HEADS UP THE CENTER FOR INFECTIOUS DISEASE RESEARCH AND POLICY AT THE UNIVERSITY OF MINNESOTA.

IT'S ALWAYS GOOD TO HAVE YOU HERE.

LET'S START WITH COVID.

WHEN WAS THE POINT THAT YOU REALIZED THAT WE WERE IN DEEP TROUBLE AND THIS WAS A WORLD-CHANGING EVENT?

>> ACTUALLY I POSTED A PIECE ON OUR WEBSITE ON JANUARY 20TH OF 2020, SAYING THE PANDEMIC IS HERE.

GET ON WITH IT.

WE HAVE GOT TO BE BETTER PREPARED FOR WHAT'S GOING TO HAPPEN.

AND I LARGELY WAS MET WITH RIDICULE BY MANY OF MY PROFESSIONAL COLLEAGUES WHO SAID YOU'RE JUST SCARING THE HELL OUT OF PEOPLE.

WE HAD A NUMBER OF CONTACTS IN WUHAN AND HONG KONG AND WE COULD SEE ALL THIS ASYMPTOMATIC TRANSMISSION.

AND SO THERE WAS NO DOUBT IN MY MIND AS EARLY AS JANUARY IT WAS GOING TO BE WHAT IT ENDED UP BEING.

>> Eric: YOU SAY THAT COVID IS ON THE RETREAT?

>> YEAH, YOU KNOW, I MEAN, FIRST, JUST TAKE A STEP BACK.

YOU KNOW, HERE IN MINNESOTA, WE'VE LOST 17,000 MINNESOTANS TO COVID.

YOU KNOW, IT'S MORE HAN THE CITY OF BEMIDJI.

WHEN YOU LOOK ON A GLOBAL BASIS, IT'S REMARKABLE, AND IN THE U.S., 1.2 MILLION PEOPLE HAVE DIED.

AND SO WHEN YOU THINK OF THE WHOLE, YOU KNOW, LAST FIVE YEARS, EVERYTHING'S RELATIVE.

YOU KNOW, WHAT IS HAPPENING NOW WITH COVID WOULD HAVE BEEN CONSIDERED A MAJOR PUBLIC HEALTH PROBLEM BEFORE 2020.

NOW TODAY WE SAY, OH, IT'S ONLY THIS BAD.

BUT IT IS IN FACT GOOD NEWS IS THAT THE LAST YEAR AND A HALF, WE'VE SEEN GENERALLY COVID CASES CONTINUE TO DROP OVER TIME, WE HAVE HAD ONE LITTLE PEAK THAT CAME UP.

WE ALSO, HAVING GONE THROUGH A HORRIBLE FLU SEASON THIS YEAR, WE'RE SEEING THAT ON RETREAT.

AND THEN FINALLY THE FIRST ONE OF THE RESPIRATORY VIRUSES ALSO ON REVOTE.

SO I THINK WE'RE PROBABLY WITHIN A MONTH TO TWO MONTHS AT LEAST OF THE BEST MONTHS FOR RESPIRATORY IRUS TRANSMISSION IN MINNESOTA THE LAST FIVE YEARS.

>> Cathy: OKAY, THAT'S REALLY GOOD NEWS.

I WANT TO GO BACK TO COVID.

IS IT POSSIBLE THAT THERE COULD BE A STRAIN OF COVID THAT COULD YET POP UP THAT WOULD BE AS DEADLY?

>> ABSOLUTELY.

AND IN FACT, NEWS MEDIA COVERED A STORY ABOUT TWO WEEKS AGO OF THE CHINESE ANNOUNCING THAT THEY HAD FOUND ANOTHER STRAIN OUT OF A BAT THAT ACTUALLY HAD THE SAME MECHANISM FOR GRABBING HUMAN CELLS AND GETTING INSIDE OF THEM AS THE ORIGINAL S.A.R.S.

COULD HE V2.

CLEARLY, THIS WAS NOT THE BIG ONE.

WE COULD EASILY HAVE A MUCH HIGHER ATTACK RATE AND SERIOUS ILLNESS OCCUR.

JUST, REMEMBER, THERE ARE TWO OTHER STRAINS OF THE CORONAVIRUS, THAT WE HAVE SEEN, S.A.R.S., WHICH OCCURRED IN 2003, AND KILLED ABOUT 30 -- 25 TO 30%, AND THEN WE HAD M.E.R.S.

THAT OCCURRED IN 2012 AND '15 AND THAT KILLED 35% OF THE PEOPLE.

COVID, AS WE KNOW IT, KILLED ABOUT 1.5% TO 2% OF THE PEOPLE.

IF YOU COULD GET A VIRUS THAT'S AS INFECTIOUS AS COVID BUT KILLS LIKE THE OTHER TWO DID, WE WOULD SEE A HORRIBLE SITUATION AND THAT SURELY IS ON THE TABLE.

THAT COULD EASILY HAPPEN.

THAT'S NOT SOME KIND OF JUST SCIENCE FICTION.

>> Eric: WHAT SHAPE IS OUR PUBLIC HEALTH SYSTEM IN?

>> IT'S DISASTROUS.

RIGHT NOW IN MINNESOTA, I'M FRIGHTENED BY WHAT I SEE HAPPENING.

OUR STATE HEALTH DEPARTMENT IS CLEARLY IN TROUBLE WITHOUT FINANCING.

95% OF THE ALL THE INFECTIOUS DISEASE FUNDING FOR OUR STATE IS FEDERAL MONEY.

AND THAT MONEY IS ON THE LINE RIGHT NOW.

AND IF YOU KNOW, WE'VE HEARD ABOUT BUDGETS AND YOU'RE GOING TO BE TALKING TO MORE PEOPLE ABOUT WHAT'S GOING TO HAPPEN WITH BUDGETS.

I THINK THAT WE'RE GOING TO SEE AGENCIES LIKE MINNESOTA'S HEALTH DEPARTMENT AND MANY OTHERS LITERALLY BECOME SKELETON CREWS.

SO FROM THAT STANDPOINT, WE'RE IN TROUBLE.

THE SECOND PART OF IT, THOUGH, IS, IS THAT PUBLIC HIT ISN'T BELIEVED IN A LOT OF PLACES ANYMORE BECAUSE OF WHAT HAPPENED WITH COVID.

AND WE HAVE A LOT OF WORK TO DO TO BETTER UNDERSTAND HOW DO WE RELATE TO THE PUBLIC?

ONE OF THE THINGS, AND I MUST COMPLIMENT "ALMANAC," BECAUSE THIS SHOW HAS PAID ATTENTION TO THIS TOPIC FROM THE VERY FIRST DAYS OF THE PANDEMIC TO NOW, AND I THINK THAT ONE OF THE THINGS THAT WE IN OUR DISCUSSIONS HERE HAVE TALKED ABOUT IS JUST HONESTY.

WHAT DO WE KNOW AND NOT KNOW?

AND THERE WERE SO MANY TIMES IN THE PANDEMIC WE DIDN'T KNOW.

YOU KNOW, WE'D SAY, WE'LL TELL YOU, WE'RE GOING TO FOLLOW IT, WE'RE GOING TO UNDERSTAND IT BETTER IN THE NEXT WEEK OR THE NEXT MONTH.

A LOT OF PLACES THAT DIDN'T HAPPEN.

THERE WAS THIS ALMOST STATEMENT MADE ABOUT WHAT WOULD HAPPEN AND IT DIDN'T HAPPEN OR IT HAPPENED A LOT WORSE.

AND SO WE HAVE A LOT TO O GET OUR OWN HOUSE IN ORDER TO BETTER RESPOND TO THESE KINDS OF CRISES LIKE THIS.

>> Cathy: I'M WONDERING, THEN, I DID NOT KNOW THAT ABOUT -- THAT MONEY, 95% OF THE FUNDING FOR THE STATE HEALTH DEPARTMENT COMES FROM THE FED.

I DID NOT KNOW THAT.

SO WHAT HAPPENS IF THE STATE HEALTH DEPARTMENT IS GUTTED?

ARE WE TALKING ABOUT VACCINATION PROGRAMS, PUBLIC HEALTH PROGRAMS?

>> EVERYTHING IS ON THE TABLING.

AND INTOISK PEOPLE AND INTOISK PE I DON'T THINK PEY UNDERSTAND THAT.

WE HAVE HAD THE LUXURY OF LIVING IN THE STATE FOR ONE OF THE VERY BEST HEALTH DEPARTMENTS FOR AT LEAST THE LAST 25 TO 30 YEARS, OKAY, AMAZING HEALTH DEPARTMENT.

THAT IS ALL GOING TO BE LOST IF WE SEE THE FEDERAL CUTS THAT WE THINK ARE COMING.

AND, YOU KNOW, WE ALREADY HAVE SEEN THE -- SOME ORECAST OF WHAT'S GOING TO HAPPEN TO STATES, AND I THINK THAT WE'RE IN REAL TROUBLE HERE.

OUR LEGISLATURE IS OT IN A GREAT PLACE TO SUDDENLY BAIL A BIG PROGRAM LIKE THIS OUT.

BUT, YOU KNOW, AS THERE WAS AN OLD COMMERCIAL MANY YEARS AGO WHEN WE WERE YOUNGER, THE OIL FAMILY COMMERCIAL WHERE WAS THE LINE WAS YOU CAN PAY ME NOW OR YOU CAN PAY ME LATER AND I THINK WE REALLY ARE AT THAT MOMENT RIGHT NOW WITH PUBLIC HEALTH.

>> Eric: FUTURE OF VACCINES.

>> IF PEOPLE WON'T TAKE IT, IT'S NOT ANY GOOD.

AND WE HAD HAD A LOT OF CHALLENGES WITH THIS MRNA TECHNOLOGY THAT CAME OUT AND WHILE IT'S A GOOD VACCINE, IT'S NOT A GOOD VACCINE IN THE SENSE THAT IT GIVES YOU LIFELONG PROTECTION.

I WORRY, THOUGH.

IN ADDITION, I WORRY, THE BIDEN ADMINISTRATION WAS ABLE TO IDENTIFY ABOUT $500 MILLION THAT THEY PUT INTO TAKING THE MRNA TECHNOLOGY AND ADOPTING TO INFLUENZA, TAKE THE H5N1, THER BIRD FLU VIRUS, THAT JUST GOT CLAWED BACK BY THE TRUMP ADMINISTRATION.

>> KEEP IN TOUCH.

>> THANK YOU.

♪ >> ERIC: MINNESOTA LOST ONE OF ITS GREATEST CIVIC HEROES THIS WEEK WITH THE PASSING OF TOM SWAIN.

THE 103-YEAR-OLD PLAYED AN IMPORTANT ROLE IN SO MANY ASPECTS OF PUBLIC LIFE IN THE STATE.

ON THE OCCASION OF HIS 100TH BIRTHDAY, OUR MARY LAHAMMER TALKED WITH HIM AND HIS REVERED BIOGRAPHER.

>> Mary: WHEN MINNESOTA TURNED 100, TOM SWAIN WAS CENTRAL TO A HUGE SUCCESSFUL CELEBRATION, TO HONOR THE CENTURY MARK IN THE NORTH STAR STATE, SWAIN REACHED THE SAME MILESTONE, HE WAS APPROPRIATELY BORN ON THE 4TH OF JULY, 100 YEARS AGO.

>> WELL, MY FRIENDS ASKED ME WHAT I WANTED TO DO WHEN I TURNED 100, AND I THINK THEY WANTED TO SAY I WANT A BIRTHDAY PARTY.

BUT I SAID NO, I WANT TO GET MORE INVOLVED AND GET PEOPLE INVOLVED IN CLIMATE CHANGE BECAUSE I THINK WITHOUT QUESTION, IT'S THE BISQUEST ISSUE THAT HUMAN KIND FACES.

>> Mary: ABOUT THE MINNESOTA ICON AND TOOK NOTE F HIS LATEST QUEST.

>> 100 YEARS LD NOW, STAFF SERGEANT SWAIN, CALLING ON THIS GENERATION TO COME TOGETHER, RALLY THE WAY HIS GENERATION DID.

TO ADDRESS A MAJOR SHARED PROBLEM.

♪ ♪ >> CATHY: LEGISLATION AND TARIFFS AND BUDGETS, OH, MY!

SO MUCH TO TACKLE WITH TONIGHT'S POLITICAL PANEL, SO LET'S JUMP RIGHT IN, STARTING WITH THE DEMOCRATS.

EMBER REICHGOTT JUNGE IS A FORMER ASSISTANT MAJORITY LEADER IN THE MINNESOTA SENATE.

ABOU AMARA IS BACK, A FORMER LEGISLATIVE STAFFER AND NOW AN ATTORNEY.

REPUBLICANS HERE TONIGHT: AMY KOCH IS A FORMER SENATE MAJORITY LEADER, NOW A LOBBYIST.

AND WE WELCOME BACK KALEY TAFFE, A FORMER LEGISLATIVE STAFFER AND NOW ALSO A LOBBYIST?

THANK YOU ALL FOR BEING HERE.

WELL, I DON'T KNOW.

WHAT DO YOU THINK HERE, SENATOR KOCH?

THERE'S A LOT OF LAME GOING AROUND AT THE STATE CAPITOL.

IS IT THE DFL TRIFECTA THAT GOT US INTO THIS PROBLEM WITH THE STATE BUDGET?

OR IS IT PRESIDENT TRUMP?

OR IS IT BOTH?

>> SO I UNDERSTAND WHY THE TRUMP TALKING POINT IS GOING AROUND.

BUT IT'S BEEN 40 DAYS AND ECONOMIC -- ANY ECONOMIST WILL TELL YOU THE LAG IS NOT POSSIBLE.

AND LSO NOTHING HAS BEEN ENACTED, AND SO THAT'S NOT FACTORED INTO THIS BUDGET AND THAT'S JUST THE FACTS.

WHAT HAPPENED IS, THERE HAS BEEN OVERSPENDING.

THERE WAS SPENDING THAT WAS DONE WITH AUTOMATIC INFLATORS.

AND THAT IS WHAT WE'RE SEEING AS A RESULT.

ALONG WITH, YOU KNOW, A NOT GREAT ECONOMY, WHICH ALSO CANNOT BE HUNG ON TRUMP AS HE JUST TOOK OFFICE AND IT HAS TO DO WITH BIDEN -- THE BIDEN ADMINISTRATION.

SO -- BUT EVEN STILL, THE POINTING IF IF I POINTING IF POINTING FINGERS ISG TO SOLVE WHAT NEEDS TO GET SOLVED HERE, WHICH IS A MASSIVE DEFICIT IN THE OUTYEARS.

A $6 BILLION.

IT'S NOT A ECORD.

BUT IT'S CLOSE TO IT.

>> Eric: CAN THEY KICK THE CAN DOWN THE ROAD?

JUST SOLVE THIS YEAR'S SITUATION?

AND COME BACK IN 2026 AND DO THE NEXT BIENNIUM, '28 AND '29.

>> WELL, THEY ACTUALLY DO HAVE A SURPLUS IN THIS BIENNIUM AND THEY ALSO HAVE A VERY FINE BUDGET RESERVE THAT HAS BEEN ESTABLISHED.

TWO THINGS HAPPENED BETWEEN THE FIRST REPORT AND THE SECOND REPORT, AND THAT'S INFLATION WENT UP.

AND THE ECONOMIC GROWTH WENT DOWN.

AND THAT'D ALL HAPPENED BECAUSE OF PRESIDENT TRUMP, NOW, I KNOW THERE ARE PEOPLE LIKE YOU WHO BELIEVE THAT IT WAS THE TRIFECTA.

BUT GUESS WHAT.

THE REPUBLICANS AT THAT TIME WERE ADVOCATING FOR MORE TAX RELIEF.

THAT WOULD NOT HAVE SOLVED THE BUDGET DEFICIT.

AND THAT REALLY HAS BEEN DRIVEN BY LONG-TERM -- >> EMBER, IT'S A 40% INCREASE IN THE STATE BUDGET.

THAT'S NOT MY -- [Overlapping conversations] >> I WAS JUST GOING TO ECHO AMY'S POINT.

A 40% INCREASE IN ONE BUDGET CYCLE.

I MEAN, IT IS CLEAR THAT THE CONSEQUENCE OF SPENDING EVERY SINGLE DOLLAR OF THE LARGEST SURPLUS THAT OUR STATE HAS EVER SEEN, 18 BILLION, PLUS RAISES TAXES WAS BEGUN HAVE NEGATIVE CONSEQUENCES.

THE REPUBLICANS HAVE BEEN BANGING THAT DRUM FOR YEARS WAY BEFORE PRESIDENT TRUMP WON THIS ELECTION.

>> SO A LOT OF THAT WAS ONE-TIME SPENDING FROM THE FEDERAL GOVERNMENT.

THESE WERE NOT MINNESOTANS PAYING THESE.

THESE WERE FEDERAL DOLLARS THAT CAME INTO MINNESOTA.

FIRST, WE HAVE A BUDGET SURPLUS RIGHT NOW.

$456 MILLION IN THE CURRENT BIENNIUM.

WHAT WE'RE TALKING ABOUT THE FUTURE.

THAT'S WHY IT'S CALLED A BUDGET FORECAST.

THEY'RE FORECASTING TRUMP DONALD TRUMP'S IMPACT ON THE ECONOMY.

"THE ECONOMISTS" AND THE EXPERTS ARE SAYING, THE NEGATIVE IMPACTS OF TARIFFS ARE GOING TO IMPACT US INTO THE FUTURE.

>> Eric: YOU'VE TRIED TO CUT THE DEAL.

DO YOU SEE A CLEAR CUT PATH TO A DEAL BASED ON WHAT WE KNOW RIGHT NOW?

>> YNLS IT'S GOING TO BE DIFFICULT FOR FOLKS, BECAUSE THIS IS BASED ON THE 2023 LEGISLATION, THERE WERE MANY THINGS THAT THE DEMOCRATS PRIORITIZED, THAT THEY ARE GOING TO BE VERY LOATHE TO GIVE UP.

IN FACT, ALL OF IT, RIGHT?

BECAUSE IT'S SORT OF HEIR BABY.

AND I GET THAT.

AND SO REPUBLICANS AND DEMOCRATS ARE GOING TO HAVE TO SIT DOWN TOGETHER AND FIGURE THIS OUT BECAUSE YOU CANNOT TOUCH -- YOU CANNOT TOUCH THE RAINY DAY FUND.

THIS ISN'T A RAINY DAY FUND.

THIS IS A SPENDING PROBLEM AND EVERYONE'S GOING TO HAVE TO SIT DOWN -- >> TWO THINGS ARE DRIVING THIS.

ONE IS THERE IS A HUGE INCREASE IN THE NEED FOR PEOPLE WITH DISABILITY TO HAVE LONG-TERM SERVICES.

AND SPECIAL EDUCATION.

NOW, LET'S OOK AT THE FEDERAL GOVERNMENT.

LET'S LOOK AT THE FEDERAL GOVERNMENT RIGHT NOW.

WHAT IS MOST AT RISK?

MEDICAID.

ONE OUT OF FOUR PEOPLE IN THE STATE HAVE MEDICAID.

NOW, THAT IS -- >> THAT'S NOT IN THE CONGRESSIONAL BUDGET -- >> JUST A SECOND.

IT'S 1/6 OF OUR BUDGET OF THE STATE OF MINNESOTA.

IF CUTS ARE IN MEDICAID -- >> THE HOUSE PASSED A BUDGET.

WE KNOW WHAT'S IN IT AND IT'S NOT MEDICAID CUTS.

>> WE'VE SEEN THIS FEAR-MONGERING AND THE SAME TALKING POINTS COMING OUT OF THE DEMOCRATIC PARTY, WHICH I DON'T BLAME THEM, BECAUSE THEY DON'T HAVE ANYTHING POSITIVE TO TALK ABOUT.

AND THEN ALL THESE CUTS ARE HYPOTHETICAL.

LOOK IN THE BILL.

IT DOESN'T SAY MEDICAID ONE TIME.

YOU CAN'T -- >> FACT OF THE MATTER IS, THE DYE TRIFECTA HAS DELIVERED A $3 BILLION RAINY DAY FUND.

WE SET A $3 BILLION SURPLUS TO WITHSTAND THE RAINY DAY.

POINT NUMBER TWO, WE HAVE A HALF A BILLION SURPLUS ON THE BOTTOM LINE RIGHT NOW, SO IF THE ECONOMY TAKES TURN, WE ARE IN A POSITION TO PROTECT OURSELVES AGAINST SOME OF THOSE THINGS.

>> Cathy: AS YOU WERE SAYING, YOU'VE BEEN IN THESE DISCUSSIONS, ABSOLUTELY, RIGHT?

SO WITH THE VOLATILE SO WITH THE VOLAT VOLATILITY OFE TARIFFS, THE STOCK MARKET ISN'T LOOKING TOO GOOD RIGHT NOW.

SO WE'RE ASKING, HOW DO YOU COME UP WITH A TWO-YEAR BUDGET WHEN YOU HAVE IMPORTANTLY REALLY, A VOLATILE STOCK MARKET, AND THE ECONOMY GETS SHAKY, OW DO YOU LOOK AT THIS WAITION?

SITUATION?

>> SO YOU HAVE TO GO FORWARD WITH GREAT CAUTION.

THE NUMBERS THAT YOU'RE LOOKING AT RIGHT NOW ARE NOT BASED ON THAT.

THAT'S NOT HOW THEY BUDGET.

THAT'S NOT HOW M.M.B.

DOES IT.

BUT GOING FORWARD, FIRST OF ALL, THE 50 MILLION, IT'S ONE-TIME DOLLARS.

IT'S NOT TO SAVE ON -- SO IT'S NOT A SOLUTION.

AND SECOND OF ALL, YOU REALLY HAVE TO APPROACH THIS WITH LIKE, YOU HAVE TO FIGURE OUT WHAT IS DRIVING THIS BECAUSE IT OES FROM A $3 BILLION STRUCTURAL DEFICIT IN THE FIRST BIENNIUM TO $6 BILLION.

IT'S DOUBLING EVERY TWO YEARS.

SO WE HAVE TO FIGURE OUT WHAT'S DRIVING THAT.

AND WE HAVE TO MAKE SOME, YOU KNOW -- WE HAVE TO MAKE SOME CHANGES.

>> HERE'S HOW I THINK THE BUDGET ENDS UP LOOKING.

YOU SLOW THE GROWTH ON SOME OF THE DRIVERS, THE HEALTHCARE COSTS WE WERE TALKING ABOUT.

>> Cathy: MEDICAID?

>> THAT'S COMING FROM THE FEDERAL GOVERNMENT.

SECOND, I DO THINK THOUSAND GOING TO BE COST SAVINGS IN THE FRAUD AND IEWZ CATEGORY.

BUT I THINK THERE'S A COMMITTEE, YOU'RE GOING TO SEE BIPARTISAN AGREEMENT ON SOME REFORMS OR CUTS IN THAT AREA TO SAVE.

I THINK IN EXCESS OF $100 MILLION.

>> I WOULD SAY TOO AS WE TALK ABOUT TARIFFS THAT OBVIOUSLY TRUMP IS USING THEM AS NEGOTIATION TOOL.

SO JUST BECAUSE HE SAYS IT, DOESN'T NECESSARILY MEAN THAT'S EXACTLY WHAT'S GOING TO HAPPEN.

BUT HE HAS BEEN BRINGING PEOPLE TO THE TABLE, AND WE HAVE SEEN POSITIVE OUTCOMES.

CANADA AND MEXICO ARE NOW WITH US AT THE BORDER.

>> I THINK YOU SHOULD TALK TO OUR FARM YEARS.

ETHEY DON'T HAVE AN EXPORT MARKET ANYMORE.

THE PEOPLE IN KENTUCKY.

THERE ARE TENS OF THOUSANDS OF JOBS THAT WILL BE LOST.

>> HE NUMBER ONE THING THAT AFFECTS OUR ECONOMY IS UNCERTAINTY.

AND PRESIDENT TRUMP IS ALL ABOUT THAT.

HE CHANGED HIS MIND TODAY TWICE ON UKRAINE.

HE CHANGED HIS MIND ON TARIFFS IN THE LAST TWO DAYS.

I MEAN, WE DON'T KNOW.

BUSINESSES DON'T KNOW.

THEY CANNOT PLAN.

NO ONE PLAN.

THE STATE CANNOT PLAN.

AND THAT, TO ME, IS THE WORST PART OF LOOKING FORWARD AND TRYING TO PROJECT.

>> Eric: SHOW OF HANDS, WHO THINKS THE GOVERNOR IS AUDITIONING FOR PRESIDENT?

>> WELL, HE SHOULD BE.

>> Eric: YOU THINK HE IS?

>> I THINK HE SHOULD BE.

I MEAN, HE WAS ON THE TICKET LAST TIME.

HE'S A NATIONAL FIGURE, AND I THINK THERE'S A MOMENT WHERE DEMOCRATS ARE TRYING TO GET THEIR FOOTING UNDER THEM A LITTLE BIT, AND I THINK IT MAKES SENSE FOR SOMEONE TO HELP US MOVE US FORWARD.

I THINK HE'S A NATIONAL FIGURE AND HE SHOULD BE THINKING ABOUT IT.

>> HE'S BEEN THERE.

HE KNOWS THE INSIDE STORY, AND HE CAN BE THE ONE -- ONE OF THE EST COUNTERS TO PRESIDENT TRUMP RIGHT NOW.

I THINK HIS MIND IS ON THIS LEGISLATIVE SESSION.

WE NEED TO BRING PEOPLE TOGETHER AND HE HAS TO BE IN THAT CENTER OF THAT.

AND I THINK HE WILL BE.

>> I THINK AS THE CONVERSATION HAS LARGELY WRAPPED AROUND FISCAL RESPONSIBLE, AFTER THE FRAUD AND ABUSE THAT WE'VE SEEN IN OUR STATED, I THINK HE'S PROBABLY THE LAST SPOKES PERSON?

>> Cathy: WHAT DO YOU THINK, SENATOR KOCH?

I >> I THINK HE'S RUNNING, BUT I THINK HE'S GOING TO HAVE A HARD GO OF IT.

>> Eric: WHAT DID ERIN MURPHY, THE LEADER IN THE SENATE, SHE USED A MILD FOUL LANGUAGE.

YOU KNOW, GET YOUR HEAD OUT OF YOUR -- >> Cathy: I THINK REAR END WAS WHAT WAS SAID.

>> DID SHE COME UP WITH THAT HERSELF.

OR DID THE CAUCUS -- >> KNOWING ERIN MURPHY, SHE'S A FIGHTER.

>> Eric: BUT THAT'S NOT HER PUBLIC PERSONA, ANYWAY.

>> I'M NOT SO SURE THAT'S TRUE.

SOMEONE WHO CARES ABOUT HER COMMUNITY -- >> Cathy: BUT I'M WONDERING, IS DECORUM, THOUGH, COMPLETEDLY GONE.

YOU LOOK AT CONGRESS, THE OVAL OFFICE, AND IT STATE CAPITOL.

YOU'VE BEEN AROUND FOR A LONG TIME, SENATOR.

>> IT'S VERY DIFFERENT WHEN WE ACTUALLY GOT ALONG AND COULD WORK TOGETHER OVER THE PARTY LINE, AND ACCOMPLISH MAJOR ACCOMPLISHMENTS.

THAT'S NOT HAPPENING.

AND I AM CONCERNED ABOUT THE OUTCOME OF THIS SESSION.

IT WILL BE VERY MINIMAL.

WHICH MIGHT BE GOOD AT THIS POINT.

WE NEED STABILITIES.

WE NEED MINIMAL-NESS.

BUT BOTTOM LINE IS WE NEED TO WORK TOGETHER.

AND YOU KNOW WHAT, AMY?

YOU KNOW THAT E DID THAT BACK THEN AND IT'S GOT TO COME BACK.

>> Cathy: WHAT DO YOU THINK ABOUT THIS LACK OF DECORUM?

>> A LITTLE BIT, AND ALSO, IT'S LIKE, AS EACH INSTITUTION GETS BROKEN DOWN, THE NEXT PHASE IS TO GO FURTHER, AND TO TAKE IT TO THE NEXT LEVEL.

AND SO THAT'S WHY IT'S REALLY IMPORTANT FOR LEADERS TO STEP UP AND EVEN THOUGH IT WOULD BE EASY TO SAY, WELL, THEY DID THIS LAST TIME, YOU NEED TO STAND AGAINST THAT AND SAY, NO, I'M GOING TO DRAW A LINE IN THE SAND AND WE JUST DON'T HAVE LEADERS THAT HAVE BEEN BEEN DOING THAT.

JOE WILSON YILZ AT OBAMA, YOU LIE, AND THE NEXT THING WE KNOW, WE GOT THIS LAST NONSTATE OF THE UNION ADDRESS WHERE DEMOCRATS ARE WALKING OUT AND SHAKING CANES AND HOLDING UP SILLY SIGNS.

>> BUT I HONESTLY THINK THAT THE DISRESPECT STARTED AT THE YEAR.

>> Eric: GOT TO GO.

THANKS.

♪ >> BECAUSE TO ME, TO THIS VERY DAY, IT'S ALWAYS -- THAT KIDNEY GOES IN, IT MAKES THE FIRST DROP OF URINE, WHEN THE LIVER GOES IN AND MAKES THE FIRST DROP OF BILE.

AND HEN THE LUNG GOES IN AND EXPANDS, THESE THINGS ARE MARVELOUS, AND THEY'RE A MIRACLE TODAY AND I'LL NEVER GET TIRED OF SEEING IT.

♪ ♪ >> Cathy: OH, DR. NIJERIAN WAS QUITE A GUY.

THE END OF THE HOUR IS NEAR, WHICH MEANS WE ARE NEARLY OUT OF TIME.

SO HERE'S A SPEED VERSION OF THE INDEX FILE SECTION WITH ANOTHER CHANCE FOR ALL OF YOU TO ANSWER LAST WEEK'S QUESTION.

ERIC TOOK YOU BACK TO THE SPRING OF 1972.

AT THE BEGINNING OF APRIL, AN INDUSTRY-WIDE DISPUTE LED A COLLECTION OF FAMED PERFORMERS TO MAKE AN APPEARANCE AT ST. OLAF COLLEGE.

THE GROUP WOULD SPEND 13 DAYS WORKING IN NORTHFIELD BEFORE RETURNING TO THEIR HOME DIGS LATER IN THE MONTH.

WHAT COLLECTION OF FAMED PERFORMERS SETTLED IN FOR A 13-DAY RESIDENCY AT ST. OLAF COLLEGE IN APRIL 1972?

COME ON, OLES, YOU CAN GET THIS DONE.

WE WANT TO HEAR FROM YOU WHETHER YOU ARE CALLING IN FROM BLIZZARD LAKE, STORMY CREEK, OR TORNADO LAKE, ALL REAL BODIES OF WATER HERE IN MINNESOTA.

651-229-1430 IS THE NUMBER TO CALL WITH ALL OF YOUR GUESSES, RIGHT OR WRONG.

TRUE CONFESSIONS: THIS QUESTION ONLY INSPIRED A COUPLE OF CALLERS LAST WEEK, SO WE'RE HOPING A FEW MORE OF YOU STEP UP TO THE PLATE AND KNOCK IT OUT OF THE PARK.

JUST ENOUGH TIME LEFT FOR SHOW-ENDING MUSIC WHILE WE ROLL THE CREDITS.

TEN YEARS AGO THIS WEEK, THE CHORAL GROUP CANTUS JOINED US.

ONE OF MY FAVORITES.

HERE THEY ARE SINGING AN ESTONIAN HYMN.

IT WAS BEAUTIFUL.

THANK YOU FOR WATCHING.

SEE YOU AGAIN NEXT WEEK.

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AND EDUCATION MINNESOTA: THE VOICE FOR PROFESSIONAL EDUCATORS AND STUDENTS THROUGHOUT THE STATE.

MORE AT EDUCATIONMINNESOTA.ORG.

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