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.