WORK THROUGH THIS YEAR.

♪♪ >> CATHY: ANOTHER REALLY BUSY WEEK IN POLITICS SO LET'S JUMP RIGHT IN WITH THIS WEEK'S VERSION OF THE POLITICAL PANEL.

DEMOCRATS UP FIRST.

JEFF HAYDEN IS A FORMER STATE SENATOR, NOW A LOBBYIST.

ABOU AMARA IS A FORMER CONGRESSIONAL STAFFER, NOW AN ATTORNEY.

REPUBLICANS WITH THEM, AMY KOCH IS A FORMER STATE SENATE MAJORITY LEADER ALSO TURNED LOBBYIST.

AND ANDY BREHM IS A LAWYER AND FORMER PRESS SECRETARY FOR U.S.

SENATOR NORM COLEMAN.

GOOD TO HAVE YOU ALL BACK.

WELL, SENATOR KOCH, I WANT TO ASK YOU, MARY HAD THAT PIECE ABOUT AG AND USUALLY VETERANS ISSUES ARE USUALLY BIPARTISAN AT THE CAPITOL.

>> CORRECT.

>> Cathy: YOU THINK THAT'S STILL GOING TO BE THE CASE AT THE END OF SESSION?

>> I THINK AT THE END OF SESSION, IT WILL.

IT'S GOTTEN -- EVERYTHING AT THE CAPITOL IS NOW GOING TO BE SO CAREFULLY NEGOTIATED BECAUSE OF THE COMPLETE SPLIT.

BUT I CERTAINLY HOPE THAT PEOPLE WON'T LOSE THEIR FOCUS ON THINGS LIKE AG AND VETS.

THERE'S JUST NO REASON TO MAKE ANYTHING PARTISAN THERE.

AND THE BUDGETS ARE SO TINY.

YOU'RE SQUABBLING OVER LITTLE THERE'S LOTS TO AGREE ON THERE.

HE SAID THE TIDE OF GOOD FEELINGS, THE ERA OF GOOD FEELINGS OVER?

WAS THERE EVER ONE?

>> I DON'T KNOW THAT THERE EVER WAS.

IT'S THE SESSION, YOU GOT TO GO THERE, YOU GOT TO FIGHT FOR THE THINGS THAT YOU WANT.

YOU GOTTA WORK WITH YOUR CAUCUS, WHICH SOMETIMES GETS A LITTLE DICEY.

SO, IT'S JUST THAT TIME OF YEAR.

SO THEY'LL BE FINE AT THE END.

BUT NOW THEY'RE GETTING AFTER IT.

>> Eric: ONE OF THE THINGS THAT POLITICAL PUNDITS GET TO DO, YOU GUYS, IS TO BE THE GREAT MENTIONERS.

AND WE SHOULD MENTION SOME POSSIBLE CANDIDATES FOR SENATE AND GOVERNOR.

IN 2026.

MELISSA LÓPEZ FRANZEN LEFT THE UNIVERSITY AS A LOBBYIST.

TO RUN.

>> LOOKS LIKE SHE'S IN, EVERYTHING THAT I CAN SEE, I HEAR, SHE'S IN.

>> Eric: PEGGY FLANAGAN, OF COURSE.

>> SHE'S IN.

>> Eric: WAS THAT COORDINATED, IT SEEMS LIKE FIVE MINUTES AFTER THE ANNOUNCEMENT, SHE WAS READY.

>> I WOULDN'T CALL IT COORDINATED.

WHAT I WOULD SAY IS, I THINK CERTAIN PEOPLE ARE VERY PREPARED.

SO WHEN THE MOMENT HITS, THEY'RE READY TO TURN THE LIGHT SWITCH ON.

>> BECAUSE THEY HAVE A HEADS-UP.

>> SHE WAS VERY PREPARED, THE LIGHT SWITCH WAS ON, SHE WAS READY TO GO.

>> Cathy: DOES THAT MEAN, THEN, THAT SHE KIND OF CUT THE LEGS OUT FROM UNDERNEATH THE GOVERNOR IN A SENSE?

>> I DON'T THINK SO.

I THINK THOSE CONVERSATIONS HAVE BEEN HAPPENING FOR WEEKS OR DAYS PRIOR TO THE ANNOUNCEMENT.

I'M NOT TOO CONCERNED ABOUT THAT.

SENATOR SMITH SAID SHE GAVE FOLKS SOME HEADS-UPS.

THERE WERE CONVERSATION, IT DOESN'T SURPRISE ME ONE BIT.

>> Eric: HOW ABOUT THE REPUBLICANS, JULIA COLEMAN, STATE SENATOR, KRISTIN ROBBINS.

>> BOTH KRISTIN ROBBINS AND JULIA COLEMAN HAVE SAID THAT THEY'RE LOOKING INTO IT.

MICHELLE DEFOY I CAN'T HAS BEEN THE NAME PEOPLE ARE TALKING ABOUT.

SENATOR KARIN HOUSLEY, LIZ COLLINS.

>> Eric: ALPHA NEWS.

>> ALPHA NEWS.

YEAH.

I'M VERY PLEASED TO SEE THE LONG LIST OF REPUBLICAN WOMEN THAT ARE IN.

>> Cathy: WHAT DO YOU THINK?

>> LISTEN, THE LIST IS LONG.

THESE ARE ATTRACTIVE RACES.

MINNESOTA'S A 50-50 STATE.

AND, SO, THESE ARE COMPETITIVE RIGHT OFF THE BAT.

SO IF WE CAN PUT FORWARD COMPETENT, ATTRACTIVE CANDIDATES, WHICH ALL OF THESE PEOPLE ARE, KENDALL QUAALS RUNNING FOR GOVERNOR, I THINK, YOU KNOW, HE'D BE TERRIFIC.

YOU KNOW, I THINK REPUBLICANS CAN DO EXTREMELY WELL.

I'M VERY OPTIMISTIC, I'M DELIGHTED TO SEE SO MANY FIRST-RATE PEOPLE WILLING TO THROW THEIR NAMES IN.

I'M VERY ENCOURAGED BY THAT.

>> Cathy: STILL TALKING ABOUT NAMES.

EVIDENTLY, LAST WEEK -- >> SORRY ABOUT THAT, RIGHT WHITE.

>> Cathy: IS ROYCE WHITE GOING TO RUN?

I MISSED THAT.

>> HE DIDN'T QUALIFY IN MY DESCRIPTION.

>> Cathy: OKAY.

I'M WONDERING HERE, WE HAD A REPORTER ON FROM THE "WALL STREET JOURNAL" LAST WEEK, HIS SOURCES SAID THE GOVERNOR IS NOT GOING TO RUN FOR U.S. SENATE.

HOWEVER, WE WERE TALKING ABOUT, WILL HE RUN FOR ANOTHER TERM AS GOVERNOR?

>> LOOK, I THINK ALL INDICATIONS ARE HE'S DOING IT, HE'S SITTING WITH A MILLION DOLLARS IN THE BANK.

LOOK AT THE NUMBERS, NOT THE NOISE, THE FUNDAMENTALS, HE'S ABOVE WATER AND HAS A FAVORABILITY THAT'S ABOVE 50%.

UNDER THOSE CONDITIONS, WHEN THE REPUBLICAN PARTY HAS BEEN ABLE TO RAISE, WHAT, $67, I THINK THEY REPORTED LAST YEAR, I MEAN, THOSE ARE CONDITIONS THAT YOU THINK ARE GOING TO BE GOOD.

ADD ON TOP OF THAT, MIDTERMS WHICH SHOULD BE GOOD FOR DEMOCRATS.

TIM WALZ IS PROBABLY GOING TO RUN.

>> FIRST OF ALL, I THINK HE'S ADDICTED TO POLITICS.

I WOULDN'T BE SURPRISED IF HE RUNS FOR A THIRD TERM.

BUT HE DOESN'T HAVE A WHOLE LOT OF INTEREST BEYOND IT.

HE IS AN EXTREMELY VULNERABLE GUY.

I MEAN, E IS ABOUT AS LEFT AS THEY COME.

I THINK, RUNNING N A NATIONAL TICKET, EXPOSED HIM TO A LOT OF THINGS THAT VOTERS IN MINNESOTA DIDN'T KNOW ABOUT HIM.

SO I'D BE DELIGHTED, I HOPE HE DOES RUN FOR A THIRD TERM.

I THINK HE'S INCREDIBLY WEAK.

DO DEMOCRATS HAVE A FINANCIAL EDGE?

ABSOLUTELY.

YOU GUYS ALWAYS HAVE.

AND THE FACT THAT WE'RE ABLE TO TIE THINGS UP IN THE HOUSE, DESPITE THAT, SHOWS THAT IDEAS ULTIMATELY MATTER, CANDIDATES ULTIMATELY MATTER.

BUT I HOPE TIM WALZ RUNS AGAIN, IT WOULD BE GREAT.

>> Eric: I WANT TO OFFER SOMETHING ABOUT 2028.

THE GOVERNOR IS WRITING A BOOK.

GETTING A PODCAST.

THOSE ARE STEPS THAT YOU MIGHT TAKE IF YOU HAVE BROADER INTERESTS.

>> WELL, ALL THE COOLEST PEOPLE HAVE PODCASTS.

[ Laughter ] >> Eric: ABOUT EVERYTHING -- ROUND ABOUT EVERYTHING, EVERY WEDNESDAY.

>> TEN YEARS, SOME OF US ARE AHEAD OF THE CURVE.

NO DOUBT, I'VE SAID THIS MANY TIMES, THE GOVERNOR HAS POSITIONED HIMSELF IN THE NATIONAL SPOTLIGHT.

HE MOVED VERY QUICKLY INTO THAT VICE PRESIDENTIAL SLOT.

AND HE HAS EVER SINCE, HE'S BEEN SORT OF POSITIONING HIMSELF A THE DEMOCRAT GOVERNOR RESPONSE TO WALZ -- OR TO TRUMP.

HE'S -- HIS ANNOUNCEMENT WAS NOT SENT TO LOCAL PRESS WHEN HE WAS THINKING ABOUT CONSIDERING A RUN FOR U.S. SENATE.

HIS ANNOUNCEMENT -- HIS, LIKE, LEAK WENT TO POLITICO, WHICH IS A NATIONAL ORGANIZATION.

SO, HE'S, FOR SURE, PLAYING ON A NATIONAL FIELD.

AND THAT WOULD MEAN, YOU KNOW, 2026, SORT OF BE, I WOULD SAY, A STEPPING STONE TO 2028.

>> Eric: WHEN WAS IT IN BLOOMINGTON THERE WAS A SPECIAL HOUSE ELECTION IN A DFL DISTRICT AND A REPUBLICAN WON THE SPECIAL ELECTION OUT IN BLOOMINGTON?

>> YEAH.

>> Eric: COULD THIS HAPPEN IN SHOREVIEW AND ROSEVILLE, 40B?

>> THAT WAS A BIT DIFFERENT.

THAT WAS THE ANDREW CARLSON RACE, 2016, 2018, I FORGET.

FUNDAMENTALLY I THINK THAT'S A DIFFERENT RACE.

ROSEVILLE IS A SAFE DFL DISTRICT.

I MEAN, IT'S ONE OF THE FASTEST-GROWING CITIES IN THE STATE.

IT IS, I THINK, PLUS 10 DEMOCRATIC.

I AM NOT CONCERNED AT ALL ABOUT THAT SEAT.

>> Eric: EFFORT BEING PUT IN BY BOTH PARTIES?

>> BOATS PEARTSDZ.

>> I CAN'T SPEAK -- >> BOTH SIDES RAISING MONEY, BOTH SIDES RUNNING.

>> IT'S AN IMPORTANT ELECTION.

>> IT'S THE MAJORITY.

YOU KNOW, IT'S EITHER A TIE FOR THE DEMOCRATS, 68 SOLID MAJORITY FOR THE REPUBLICANS.

>> Cathy: SAY, LET'S TALK A LITTLE BIT ABOUT THE LEGISLATURE GOING BACK TO THIS QUESTION ABOUT THE REVENUE FORECAST, RIGHT?

MIGHT THERE -- BECAUSE OF THE UNCERTAINTY ON THE FEDERAL LEVEL, MIGHT THERE HAVE TO BE ANOTHER REVENUE FORECAST, SAY, I DON'T KNOW, MAY OR SOMETHING LIKE THAT, APRIL, MAY?

>> I THINK THERE POTENTIALLY COULD BE ONE.

OR OFTEN WHAT THEY'LL DO, IF THEY'RE REALLY UNCERTAIN, THEY MAY JUST PUT A BUNCH OF MONEY ON THE BOTTOM LINE.

SO IF THERE IS A SURPLUS, WE HAD $650 MILLION, HALF OF THAT OR 2/3 OF THAT COULD GO KIND OF TO THE BOTTOM LINE.

AND USING THE IDEA THAT WE DON'T KNOW WHAT'S GOING TO HAPPEN WITH THE FEDERAL GOVERNMENT, WHICH IS ABOUT 1/3 OF OUR OVERALL BUDGET.

>> WHICH ON THAT POINT, PROBABLY MEANS WE'RE GOING TO HAVE A SPECIAL SESSION.

AT SOME POINT -- >> WELL, WE'RE ALREADY DELAYED.

>> BUT IT EVEN ADDS MORE LEGITIMATE REASONS AS TO WHY WE WOULD HAVE ONE IN THE SUMMER.

>> Eric: DONALD TRUMP'S IMPACT ON POLICY AND POLITICS IN MINNESOTA, WHAT DO YOU THINK?

>> I THINK IT'S POSITIVE.

I MEAN, I THINK THE PRESIDENT IS DOING EXACTLY WHAT HE WAS ELECTED TO DO.

I MEAN, POLLS HOW THAT ABOUT 80% OF AMERICANS WANT THINGS SHAKEN UP IN WARRANT.

HE'S DOING THAT.

I THINK WHAT DO GEVMENTD IS DOING -- DOGE IS DOING, LOOKING AT THIS INCREDIBLE WASTE THAT THEY'RE CUTTING, IS A GOOD THING.

DONALD TRUMP SAID SUCCESS IS GOING TO BE OUR, YOU KNOW, CARRYING CARD AND I THINK THAT'S WHAT'S GOING TO HAPPEN.

>> I DON'T KNOW IF CUTTING THE NIH IS WASTE.

LOOKS LIKE THEY'RE GOING TO CUT POSTAL EMPLOYEES, THERE IS JUST A TON OF THINGS.

THEY'RE CUTTING PEOPLE, THEN THEY'RE HIRING THEM BACK.

I DON'T NECESSARILY THINK THAT THAT'S WASTE.

I THINK THAT'S A ALKING POINT.

I THINK THE REPUBLICANS, IN PARTICULAR, ARE GOING TO PAY FOR IT IN THE MIDTERMS.

>> WHAT THE AMERICAN PEOPLE UNDERSTAND, I THINK THE DEMOCRATS DON'T, THE COUNTRY'S ABOUT TO GO BANKRUPT.

AND IF WE CONTINUE ON THIS TRAJECTORY, THERE'S NOT GOING TO BE ANYTHING.

THE BENEFITS ARE OUT THE DOOR.

>> THEY'RE NOT GIVING THE MONEY TO THE -- FOR DEBT.

RIGHT?

LIKE THEY'RE INCREASING THE DEBT, THEY'RE GIVING IT TO FOR TAX BREAKS FOR BILLIONAIRES.

>> NO, THEY'RE GOING TO APPLY TO -- IT TO THE DEBT.

YOU'RE TALKING ABOUT THE TAX RATES THAT ARE CURRENTLY THE CASE PERMANENT.

WHICH, AGAIN, IS PART OF IT A PRO GROWTH AGENDA.

>> Cathy: DO YOU THINK THEY START MESSING WITH MEDICAID AND MEDICARE?

>> WELL, THE PRESIDENT SAID HE DOESN'T WANT TO DO THAT.

I MEAN, THAT'S PART OF GETTING THE FISCAL HOUSE IN ORDER SO WE CAN PROTECT THOSE PROGRAMS.

THEY ARE SET TO GO BROKE HERE QUITE SOON IF WE DO NOTHING.

SO IF WE DO NOTHING, THEN WE ARE GOING TO HAVE TO CUT THEM.

SO, THE WAY WE AVOID THAT IS BY CUTTING THE FAT, WHICH, UNFORTUNATELY, IS IN EXCESS.

>> YEAH, WHAT I WOULD SAY, THOUGH, UNLESS YOU'RE LOOKING AT DEFENSE SPENDING, UNLESS YOU'RE LOOKING AT ENTITLEMENTS IN A VERY REAL WAY, THE DEBT WILL CONTINUE TO GROW ON A NEW YORK LEVEL.

AND ANYONE WHO'S BEING HONEST ABOUT THAT, KNOWS THAT.

AND, SO, TACKLING THOSE BIG ISSUES, NOW, IT IS NOT TO SAY YOU DON'T TACKLE ALL THE THINGS, AND YOU DON'T ROOT OUT FIRST AND FOREMOST THE WASTE AND FRAUD THAT PEOPLE HAVE JUST BEEN ALLOWING TO GO RAMPANT.

AND I DO APPLAUD THAT.

HOW YOU DO IT, I THINK MATTERS.

AND I WOULD ALWAYS SAY, DON'T TAKE A SLEDGEHAMMER, TAKE A SCALPEL AND EVERY SINGLE DAY FIND SOMETHING.

BUT ULTIMATELY, ENTITLEMENT PROGRAMS ARE A HUGE DRIVER OF COST AND DEBT ON A NATIONAL LEVEL.

>> IT'S UNDISPUTABLE.

>> Eric: WOULD THE MINNESOTA SENATE RACE MERIT A TOP-TIER, ALL-OUT FUNDING BLITZ ON BOTH SIDES OR IS IT NOT AT THAT TOP-TIER LEVEL?

>> IT WILL BE BECAUSE THE DEMOCRATS NEED TO EXPAND -- THE REPUBLICANS NEED TO EXPAND THE MAP IN 2026.

THE MAP WAS GOOD FOR REPUBLICANS ON THE U.S. SENATE SIDE IN 2024.

IT'S NOT AS STRONG IN 2026.

AND THEN WITH AN OPEN EAT, IN SORT OF A WING YEAR STATE THEY HAVE TO MAKE A MOVE.

>> I THINK IT DEPENDS ON WHO THE REPUBLICAN CANDIDATE IS.

SO IF IT'S THE PEOPLE WHO WE THINK KIND OF CAN PROJECT AND SEEM TO BE NORMAL, BUT IF IT BECOMES A FRINGE CANDIDATE AGAIN THEN IT'S NOT.

>> ON ITS FACE IT'S NOT A TIER ONE RACE.

IT'S TIER TWO.

THIS IS A HOLD, IT'S NOT PICKUP OPPORTUNITY THAT'S IN A SWING DISTRICT OR A BATTLE GROUND STATE.

WHEREAS, I LOOK AT MICHIGAN, FOR EXAMPLE, THAT IS A DISTRICT THAT HAS TO BE PROTECTED BY THE DEMOCRATS, IF THE DEMOCRATS LOSE THAT SEAT, THERE IS NO PATH TO THE MAJORITY IN THE SENATE.

>> Eric: AND WOULD PRESIDENT TRUMP ENDORSE FOR OVERNOR OR SENATOR HERE IN MINNESOTA?

>> I THINK THAT'S THE REALITY OF THE REPUBLICAN PARTY RIGHT NOW.

I MEAN, I THINK THE PRESIDENT PROBABLY WILL BE INVOLVED.

WE'LL SEE HOW THAT SHAKES OUT.

AGAIN, I'M HOPING TO HAVE A VERY COMPETITIVE PRIMARY.

I THINK THERE ARE A LOT OF GOOD REPUBLICANS RUNNING.

AND WE DON'T WANT A CORONATION, WE WANT A CONTEST HERE.

>> Eric: SO THE REPUBLICAN TRADITION OF THE STRONG ENDORSEMENT MAY NOT BE THE CASE THIS YEAR, NEXT YEAR?

>> I THINK WE MAY MOVE BEYOND THAT, WE'LL SEE.

>> I THINK THAT'S WISHFUL THINKING.

>> WE'LL SEE.

REPUBLICANS ARE WINNING AND THEY LIKE IT.

I THINK WE WANT TO DO IT AGAIN.

>> HE'S NEVER DEMONSTRATED -- HE'S DEMONSTRATED WE WILL -- [ OVERLAPPING CONVERSATION ] >> KIND OF WENT A LITTLE.

THEY LIKE TO TEASE.

[ OVERLAPPING CONVERSATION ]