♪♪ >> ERIC: WITH US NOW TO TALK ABOUT THE DEAL THAT GOT THE HOUSE ORGANIZED AND HOW BOTH PARTIES WILL WORK TOGETHER GOING FORWARD, NEWLY ELECTED REPUBLICAN HOUSE SPEAKER LISA DEMUTH.

SHE HAILS FROM COLD SPRING, MINNESOTA.

AND D.F.L.

HOUSE LEADER MELISSA HORTMAN, WHO CALLS BROOKLYN PARK HOME.

THE WELCOME BACK TO YOU TWO.

I WANT TO ASK YOU BOTH THIS.

WHAT PITCH DID YOU MAKE TO YOUR CAUCUS?

>> YOU KNOW, WHEN WE LOOKED AT THE DEAL THAT WAS BEING OFFERED AND AS LONG AS 23 DAYS HAD PASSED WITHOUT REALLY BEING ABLE TO GET TO WORK FOR THE PEOPLE OF MINNESOTA, THIS WAS AN EXCELLENT COM PROJECTION.

>> Eric: HOW DID YOU SELL IT?

>> ONE, WE HAD TO HAVE BRAD TABKE SEATED AND HONOR THE WILL OF THE VOTERS IN SHAKOPEE.

WE ALSO HAD TO HAVE THAT THE WILL OF THE VOTERS AS HONORED STATEWIDE SO THAT WHEN WE RETURN TO A TIE, THAT THERE WILL BE POWER SHARING.

>> Eric: ONE OF THE LOBBYISTS TOLD ME THAT YOU LITERALLY FELL N YOUR SWORD TO SAVE TABKE AND MAKE THE DEAL.

IS THAT A FAIR CHARACTERIZATION?

>> I DON'T THINK SO.

I THINK IT'S ALWAYS BEEN CLEAR SINCE THE REPUBLICANS WERE 67-66 THAT WE WOULD HAVE TO MAKE AN ACCOMMODATION AT SPEAKER.

WHEN YOU HAVE THE MOST VOTES, YOU GET THE SPEAKERSHIP.

AND SO THAT WAS LOGICAL THAT THAT PIECE WOULD FALL INTO PLACE.

WHAT WAS IMPORTANT WAS THAT WE SET SOMETHING UP SO THAT WHEN WE'RE TIED, WE CAN ALL GET ALONG WITH EACH OTHER AND WE CAN WORK COLLABORATIVELY TOGETHER.

>> Cathy: AND DO YOU THINK IT ALSO BROKE BECAUSE YOU HAD MORE PEOPLE UNTIL THE ROOM?

>> POTENTIALLY.

I THINK LEADER HORTMAN AND I HAD DONE A GOOD JOB SINCE THE ELECTION.

AND IT HAS BEEN BUMPY AT TIMES.

BUT I THINK AS WE BROUGHT IN OTHER PEOPLE, THAT WAS TIME.

BUT WE'VE DONE A LOT OF THE FRAMEWORK AND A LOT OF THE FOUNDATION WORK THAT NEEDED TO BE DONE QUITE WELL TOGETHER.

>> Cathy: SO WHAT DO YOU WANT TO ACCOMPLISH WHILE THE REPUBLICANS HAVE HE MAJORITY?

>> WHAT WE WOULD LIKE TO DO IS WE WILL HAVE REPUBLICAN CHAIRS FOR -- UNTIL WE WOULD RETURN TO A TIE.

SO MID-MARCH, POTENTIALLY.

AND THEN E WILL HAVE A REPUBLICAN CHAIR FOR THE FULL TWO YEARS IN THE FRAUD COMMITTEE.

WE WANT TO DO THE THINGS THAT MINNESOTANS NEED US TO DO.

THAT'S ANSWERING THE QUESTION ON FRAUD AND MAKING SOME MOVEMENT TO STOP FRAUD IN MINNESOTA.

WE ALSO HAVE TO RECOGNIZE WHERE WE'RE AT FISCALLY.

EVEN THOUGH THE BUDGET FORECAST ISN'T OUT YET, WE KNOW THAT WE'VE GOT A EFICIT COMING UP.

AND SO WE HAVE TO ADDRESS THOSE THINGS.

SO SOME COMMON SENSE THINGS.

THAT WILL HAVE POTENTIALLY DEMOCRAT BUY-IN.

WE NEED 68 VOTES TO PASS ANY BILL AND WE FULLY RECOGNIZE THAT.

>> Eric: ONE OF THE TRIED AND TRUE ACTIVITIES OF A MINORITY AND YOU'RE NOT A MINORITY IN YOUR CAUCUS, BUT YOU WILL BE FOR A MONTH, IS TO THROW SAND IN THE GEARS, FILIBUSTER, DELAY.

IS THAT WHAT WE'RE GOING TO SEE FOR FIVE WEEKS?

>> THAT IS NOT MY STYLE.

I WAS THE MINORITY LEADER IN 2017 AND 2018 AND I CONVINCED MY CAUCUS AT THAT POINT THAT THE BEST WAY TO COMMUNICATE WITH PEOPLE WAS TO HAVE PRESS CONFERENCES AND EBB GAUGE WITH THE MEDIA AND REACH OUT TO YOUR LOCAL VOTERS.

NOT TO BE A REAL PAIN IN THE NECK ON THE HOUSE FLOOR.

CERTAINLY THAT'S A TOOL THAT CAN ACCOMPLISH THINGS SOMETIMES.

BUT I HOPE THAT'S A TOOL WE WON'T HAVE TO USE.

>> Cathy: WHAT DO YOU THINK IS BEGUN BE HRD TO GET OFF THE HOUSE FLOOR?

>> SURE, I THINK THAT WE'LL BE FOCUSED ON THE BUDGET THIS YEAR, AND SO I THINK GIVEN THAT EVERYTHING THAT COMES TO THE HOUSE FLOOR WILL HAVE TO BE BIPARTISAN, AND AS LONG AS WE STAY FOCUSED ON THE UDGET AND WE DON'T WANDER OFF ON IDEOLOGICAL CONFLICT ON THE WAY TO A BALANCED BUDGET, I THINK WE SHOULD BE IN PRETTY GOOD SHAPE.

>> Eric: REPRESENTATIVE TORKELSON SAID AT THE NEWS CONFERENCE THAT YOU HAD EARLIER THIS WEEK, THAT SOME REPAIR WORK IS NEEDED.

>> I THINK IN RELATIONSHIPS, THERE WILL NEED TO BE SOME REPAIR WORK.

>> Eric: HOW DO YOU GO ABOUT THAT?

>> JUST GETTING US ALL BACK INTO THE SAME SPACE.

AND SO YESTERDAY WHEN WE WERE FINALLY ALL BACK TOGETHER ON THE HOUSE FLOOR, LOOKING ACROSS AND WATCHING PEOPLE, BOTH DEMOCRATS AND REPUBLICANS, MEET EACH OTHER FOR THE FIRST TIME, OR EMBRACE AND HUG AND SHAKE HANDS, IT WAS REALLY GOOD TO SEE THAT.

AS WE MOVE FORWARD, WE KNOW THAT WE'RE NOT GOING TO AGREE ON EVERYTHING.

BUT GETTING PEOPLE INTO THE SAME ROOM, FOCUSED ON DOING THE WORK FOR MINNESOTANS, IS A REALLY GOOD START.

IN THE RIGHT DIRECTION.

>> Eric: ONE OF GREG DAVIDS' GREAT SAYINGS, HE'S A REPUBLICAN TAX COMMITTEE GUY FROM PRESS TON, MINNESOTA, AND HE SAID, YOU CAN'T TAKE THE POLITICS OUT OF POLITICS.

AND I WONDER HOW THAT'S GOING TO SHAPE -- GAUZE OF BECAUSE YOU TWO ARE GOING TO HAVE TO GO IN AT THE END OF SESSION TOGETHER TO SELL THE HOUSE POSITION OR THE REPUBLICAN POSITION ON THE BUDGET.

HOW'S THAT ALL GOING TO WORK?

>> WELL, YOU KNOW, I'VE BEEN IN THE LEGISLATURE FOR 20 YEARS.

I CAME IN WITH PAT GAROFALO IN 2004 AND HE'S SO BUMMED THAT HE'S MISSING THIS SESSION BECAUSE WE'VE SEEN EVERYTHING.

WE'VE SEEN THE MAJORITY GO BACK AND FORTH.

WE'VE SEEN BIG MAJORITIES AND SLENDER MAJORITIES.

BUT TO HAVE A TIE IS REALLY A COOL OPPORTUNITY.

EVERY SINGLE DAY, ONCE WE'RE TIED, IN THE MIDDLE OF MARCH, IN ORDER TO MOVE A BILL OUT OF COMMITTEE, PEOPLE ARE GOING TO HAVE TO RESOLVE CONFLICT.

EACH DAY.

IT WON'T BE ALL AT THE END.

THAT WE'LL BE TRYING TO FIGURE IT OUT.

IT WILL BE THOSE CO-CHAIRS IN EACH OF THOSE COMMITTEES DOING THAT WORK.

>> C >> Cathy: AND OF COURSE AS SPEAKER, YOU HAVE TO KEEP YOUR CAULK YUCK OF YOUS TOGETHER, RIGHT?

>> I THINK THAT THERE'S ALWAYS OPPORTUNITY FOR PEOPLE TO SEE THINGS DIFFERENTLY, BUT AS YOU SAW, THE SPEAKER VOTE YESTERDAY, WE WERE COMPLETELY UNIFIED.

AND AS WE BUILD THOSE RELATIONSHIPS, WE WILL CONTINUE WORKING TOGETHER.

WE'VE BEEN IN THE OFFICE SINCE THE 14TH.

AND SO WE'VE HAD TIME TO BOND AS A CAUCUS AND TO UNDERSTAND A LITTLE BIT MORE ABOUT OUR 14 NEW MEMBERS THAT ARE JOINING US.

BUT I THINK THAT WE'LL BE ABLE TO DO A GOOD JOB.

MY PRIORITY FOR THIS YEAR, THOUGH, IS TO MAKE SURE THAT BUDGET GETS DONE ON TIME.

I DO NOT WANT TO SEE A SPECIAL SESSION.

>> Eric: MY SPIDEY SENSES ARE TINGLING THAT THE OUTBIENNIUM, '28-'29, WHERE THERE'S THE $5 BILLION SHORTFALL PROJECTED, THAT CAN'S GOING TO BE KICKED DOWN THE ROAD?

>> YOU KNOW, THE GOVERNOR'S BUDGET STARTS TO TACKLE THAT.

AND THERE'S CERTAINLY LOTS OF DIFFERENT WAYS WE COULD TACKLE THAT.

WE FORTUNATELY HAVE A LARGE CASH BALANCE AT THE END OF THIS BIENNIUM, 3.7 BILLION ON THE BOTTOM LINE THIS BIENNIUM.

WE HAVE ANOTHER SURPLUS IN THE NEXT BIENNIUM, 1.5 BILLION.

SO WHEN WE GET TO, YOU KNOW, '28 AND '29, WE WILL HAVE HAD SOME TIME TO TRY TO BEND SOME OF THOSE CURVES WHERE THE INFLATION IS GOING UP JUST TOO HIGH OF A RATE.

>> Eric: UT IT SEEMS TO ME, THOUGH, THAT BOTH SIDES, BOTH PARTIES LIKE TO SPEND MONEY.

YOU SPEND IT ON DIFFERENT THINGS.

BUT -- AND I WOULD THINK EVEN THESE CUTS ARE GOING TO BE HARD.

SUBURBAN SCHOOL DISTRICTS AND SO FORTH?

>> WE DEFINITELY HAVE TO LOOK AT POTENTIAL REDUCTIONS ACROSS THE STATE BUDGET, NOT A ONE NUMBER ALL THE WAY ACROSS EVERYTHING.

BUT REALLY MAKING SOME COMMON SENSE DECISIONS.

WE'VE GOT TO DO THAT THIS YEAR.

PEOPLE ARE EXPECTING US TO DO THAT.

WE KNOW THAT MINNESOTANS ARE OVERTAXED.

WE DON'T HAVE A REINHARDT -- WE HAVE A REINHARDT THAT COMES IN, BUT WE ARE OVERTAXED IN THAT -- >> Eric: SO THAT SALES TAX PROPOSAL FROM THE GOVERNOR?

>> THAT IS 7 CENTS ON $100.

YEAH, SEVEN CENTS ON 100 E HUNDRED DOLLARS IS THAT REDUCTION, PLUS THEN IT INCREASES THE TAX ON OTHER THINGS THAT DIDN'T HAVE TAX BEFORE.

SO -- >> THERE WAS A PIECE IN TODAY'S "STAR TRIBUNE" ABOUT THE MAJOR SPORTS STADIA IN -- I THINK THAT'S THE RIGHT WAY TO SAY IT -- U.S. BANK STADIUM, XCEL ENERGY CENTER, TARGET CENTER, TARGET FIELD, ARE GOING TO NEED SOME MAJOR REPAIRS.

SO IN TERMS F THE BONDING BILL, WOULD YOU LOOK AT SOMETHING LIKE THAT?

>> BONDING IS AN INTERESTING THING, AND WE KNOW THAT THIS IS THE YEAR FOR THAT.

BUT WE HAVE TO BE WISE IN WHAT WE DO.

WE NEED TO MAKE SURE THAT THERE IS IMPACT ON ANYTHING SPENT IN BONDING THAT GOES ACROSS THE STATE.

ROADS, BRIDGES, WASTEWATER, THOSE THINGS THAT MINNESOTANS ARE REALLY COUNTING ON.

I KNOW HE SPORTS STADIUMS DO HAVE SOME DEFINITE ASKS THAT THEY'VE BEEN TALKING ABOUT.

WE'LL DEFINITELY REVIEW THOSE.

BUT I THINK IT'S A LITTLE TOO EARLY.

WE JUST STARTED YESTERDAY.

IT'S A LITTLE TOO EARLY TO HAVE THOSE CONVERSATIONS AS FAR AS WHERE WE'RE GOING TO LAND.

BUT WE'LL DEFINITELY LOOK AT THAT.

I KNOW OUR CHAIR IS WORKING HARD ON BONDING.

>> Cathy: AND OF COURSE MAYBE BONDING IS A BIG DEAL, RIGHT?

SO EVEN IF YOU HAVE SOMEBODY IN YOUR CAUCUS THAT IS NOT HAPPY WITH WHAT'S GOING ON, YOU CAN JUST AY, THERE'S THIS PROJECT -- >> I THINK THE IMPORTANT THING IN THE BONDING BILL IS TO LOOK AT THOSE PROJECTS OF STATEWIDE SIGNIFICANCE.

I THINK IT'S VERY EASY TO GO DOWN THE PATHWAY OF DOING A LITTLE OF THIS AND A LITTLE OF THAT.

WHAT'S REALLY HARD AS A CAUCUS AND AS A LEGISLATURE IS O BE DISCIPLINED BY HE WAY WE SPEND THOSE BONDING PARTICULARS AND HAVE LOCAL COMMUNITIES RAISE MONEY IN THEIR COMMUNITY FOR THEIR LOCAL PROJECTS AND REALLY FOCUS ON THOSE BREAD AND BUTTER ISSUES THAT AFFECT ALL MINNESOTANS, HIGHER EDUCATION, ROADS AND BRIDGES.

>> Eric: FRAUD COMMITTEE MEETS, IS IT MONDAY MORNING MORNING?

>> YEAH, FIRST COMMITTEE OUT OF THE GATE, MONDAY MORNING AT 8:15.

THEY'LL BE HEARING FROM THE OFFICE OF LEGISLATIVE AUDITOR, JUDY RANDALL.

AND I THINK THAT IS GOING TO BE AN EXCELLENT COMMITTEE TO GET THIS STARTED.

WE HAVE TO ADDRESS THE FRAUD ACROSS THE STATE OF MINNESOTA.

>> Cathy: DO YOU AGREE THAT THERE IS A LOT TO LOOK AT?

>> WELL, I THINK A.G. ELLISON AND ANDY LUGER HAVE DONE SOME GREAT JOBS PROSECUTING CRIMINALS AND FINDING THAT WHEN PEOPLE ABUSE THE GOVERNMENT PROGRAMS.

AND STEAL FROM THE GOVERNMENT.

I THINK WE'LL BE SEEING MORE PROSECUTIONS COMING UP.

>> Eric: HERE'S AN UTTERLY PREMATURE QUESTION.

ARE YOU RUNNING FOR REELECTION IN 2026?

>> NEVER SAY NEVER.

>> OKAY.

>> KIND OF FOLLOWING NANCY PE LOPELOSI'S MODEL.