♪♪ >> MINNESOTA'S LEGISLATURE IS ON BREAK THIS WEEK.

JOINING US TO WADE THROUGH IT ALL.

START WITH THE DEMOCRATS.

JEFF HAYDEN IS A FORMER STATE SENATOR NOW A LOBBYIST.

SARAH LOPEZ IS PARTY ACTIVIST AND PARTY DIRECTOR AT UNIDOS MINNESOTA.

REPRESENTS THE REPUBLICAN SEED, ED MEEKS A FORMER CONGRESSIONAL STAFFER AND LIEUTENANT GOVERNOR CANDIDATE, NOW HEADS THE FREEDOM FOUNDATION OF MINNESOTA.

KURT DAUDT, FORMER SPEAKER OF THE MINNESOTA HOUSE IS HERE AS WELL.

ANNETTE, SENATE DISTRICT 6, THE SPECIAL ELECTION.

WE'RE GOING TO HAVE A HUSBAND AND WIFE TEAM BACK IN THE CAPITOL.

>> AND A REALLY, REALLY STRONG WOMAN IS GOING TO WIN THAT RACE.

KARI HEINTZEMAN AND IT ADDS TO OUR NUMBERS, WHICH ARE REALLY DOWN IN THE LEGISLATURE OF WOMEN -- >> Eric: SHE'LL BE THE FOURTH I THINK IN THE REPUBLICAN CAUCUS.

>> THAT'S RIGHT, AND WE SHOULD HAVE DOUBLE THAT.

>> Eric: DEMOCRATS GOT ANY SHOT THERE?

>> UNFORTUNATELY, I MEAN, I THINK WE HAVE A GREAT CANDIDATE.

BUT THE REGION ISN'T FAVORABLE FOR DEMOCRATS.

BUT WE HAVE A GREAT CANDIDATE AND THE ISSUES ARE COMING OUT AND THE TIDE IN THE COUNTRY IS CHANGING AND I THINK THERE ARE SOME THINGS THAT MRS. HEINTZEMAN IS ROBABLY GOING TO HAVE TO TALK ABOUT PROBABLY ABOUT HER AFFILIATION WITH DONALD TRUMP.

>> THE AREA IS NOT WHAT I WOULD CALL A DEMOCRATIC STRONG HOLD BY ANY MINES, BUT I THINK IT'S AN INTERESTING ELECTION TO KEEP AN EYE ON JUST BECAUSE OF THE DENT THE DEMOCRAT CANDIDATE MIGHT BE ABLE TO MAKE.

AND BY NO MEANS IT'S LIKE A LITMUS TEST OF WHAT GOING TO HAPPEN.

IT'S JUST AN INTERESTING ONE.

I'M REALLY CURIOUS ABOUT WHAT'S GOING ON HAPPEN.

>> SHE'S GOING TO DO GREAT.

AND IT'LL BE THE SECOND HUSBAND AND WIFE HOUSE -- >> Eric: THE RARICKS ARE THERE.

>> YEAH, IT'LL BE THE SECOND ONE.

WHICH I THINK IS INTERESTING.

FASCINATING.

>> Cathy: IC I HAD THE CHANCE TO TALK TO FORMER LAWMAKER RYAN WINKLER THIS WEEK AT MPR ABOUT SENATOR CHAMPION'S ETHICS PROBLEMS AND WE WERE TALKING ABOUT THE LAX ETHICS STANDARDS IN THE MINNESOTA LEGISLATURE.

I'D BE CURIOUS TO SEE WHAT YOU SAY ABOUT THAT, SENATOR HAYDEN.

>> WELL, I WOULD SAY THIS.

I WOULD SAY THAT I'M GLAD WE'RE FOCUSED ON THE LAW AND THE RULES.

AS OPPOSED TO SENATOR CHAMPION WHO I BELIEVE, AND I THINK THAT THE OPINION WILL SAY EARLY NEXT WEEK THAT HE DIDN'T BREAK ANY RULES AND THAT HE WAS REPRESENTING PEOPLE PRO BONO.

WHILE THEIR BILLS WEREN'T IN THE HOUSE.

AND AT THE SAME TIME, A LOT OF THE THINGS THAT HE WAS REPRESENTING THEM FOR WERE THINGS THAT THE ORGANIZATIONS NEEDED.

SO IF THE CONVERSATION IS ABOUT LAWMAKERS CHANGING THE LAW AND THEN WE NEED TO LOOK AT C.P.A.s.

WE NEED TO LOOK AT INSURANCE BROKERS.

I MEAN, THERE ARE A LOT -- WE NEED TO LOOK AT FARMERS AND TEACHERS AND WE SHOULD FIGURE OUT WHAT THE DISCLOSURE IS.

I'M GLAD IT'S NOT ON SENATOR CHAMPION.

>> Eric: THIS IS ONE OF THE BYPRODUCTS OF HAVING A PART TIME LEGISLATURE.

I SUPPOSE.

ARE THERE SOME GRAY AREAS?

>> IT IS, AND IT ISN'T.

I MEAN, THERE ARE SOME REALLY GRAY AREAS IN THE LEGISLATURE THAO SHOULD BE FIXED AND ONE OF THOSE IS THE EARMARKS.

IF I WERE ADVISING THE LEGISLATURE, I WOULD SAY, NO EEARMARKS FOR THE NEXT TWO YEARS.

DEVELOP A CLEAR WRITTEN POLICY FOR BOTH THE HOUSE AND THE SENATE GOING FORWARD.

WHEN THE LEGISLATURE DOES AN EARMARK, THEY GET NO OVERSIGHT FROM THE STATE AGENCIES -- >> I'M SORRY, ANNETTE TO CUT YOU OFF A.NO, THEY ABSOLUTELY -- THEY GET A TON OF OVERSIGHT.

FIRST OF ALL, IT'S RURSZED SO YOU HAVE TO SHOW THAT YOU'VE DONE YOUR WORK.

I HAVE A LOT OF CLIENTS IN THE CONTRACTOR'S OFFICE, THE OFFICE OF GRANTS MANAGEMENT.

THERE IS A TON OF OVERSIGHT AND WHAT'S OFTEN CITED IS THE LEGISLATIVE AUDIT OF 2007.

THAT'S BEFORE KURT AND I WERE EVEN THERE.

AND SO I THINK THAT THAT'S A MISNOMER AND THERE IS A TON OF OVERSIGHT.

>> YOU CAN TAKE THAT UP WITH THE GOVERNOR.

HE'S THE ONE WHO SAID -- >> I CERTAINLY WILL.

>> IT WOULD BE GOOD TO CLEAR THIS UP AND HAVE A CLEAR DPE DELINEATED POLICY.

>> I ABSOLUTELY DOES AND I THINK NOT ONLY THAT, IT'S WHAT THE ATTORNEY GENERAL IS GOING THROUGH RIGHT NOW WITH HIS CONNECTIONS TO THE "FEEDING OUR FUTURE" FRAUD AND THE PEOPLE WHO WERE INDICTED ON THAT AND CONVICTS.

AND FRANKLY, YOU KNOW, I THINK WE HAVE TO REMEMBER THAT THERE HAS BEEN MORE FRAUD UNDER GOVERNOR WALZ THAN UNDER ANY OTHER GOVERNOR IN THE HISTORY OF THE COUNTRY.

THIS DEMOCRATIC PARTY IN MINNESOTA HAS BEEN PLAGUED WITH FRAUD.

AND I THINK THEY NEED TO BE THE ONES TO STEP FORWARD AND SAY, WE'RE GOING TO PUT ALL KINDS OF TRANSPARENCY.

I'M GOING TO RESIGN.

I AM GOING TO STEP DOWN AND WE'RE GOING TO MAKE SURE THAT THERE'S NO CONFLICT OF INTEREST HERE.

>> Eric: SARA.

>> "FEEDING OUR FUTURE" WAS ONE OF THE BIGGEST BETRAYALS OF PUBLIC TRUST EVER, AND I UNDERSTAND THAT.

BUT AT THE SAME TIME, IT SHOULDN'T BE USED AS A POLITICAL PINATA TO DISCUSS US FROM HE TASK AT HAND, WHICH IS THE -- GIVING CRAZY TAX BREAKS TO 1% AND I UNDERSTAND WHY -- AND I'M JUST SO GLAD THAT THESE PEOPLE ARE GETTING CONVICTED.

THEY BETRAYED THE PUBLIC TRUST.

THEY EVEN GOT SOME GOOD FAITH ELECTED OFFICIALS TALKING TO THEM, BECAUSE THEY'RE THEIR CONSTITUENTS AT THE END OF THE DAY.

RIGHT?

INVESTIGATIONS CONTINUING, PEOPLE GOT INVESTIGATING, PEOPLE ARE IN JAIL.

AND I AGREE WITH THAT.

[Overlapping conversations] >> I'M SORRY.

HE JUST WAS NOT TO A MEETING THAT WAS RECORDED.

HE WAS LOOKING INTO WHAT FOLKS WERE SAYING.

WHEN THEY FOUND OUT THESE FOLKS WERE BAD, THEY WENT AFTER THEM.

>> THAT'S NOT WHAT HE SAYS ON THE TAPE.

HE NEEDS TO ANSWER A LOT OF QUESTIONS VERY QUICKLY.

HE NEEDS TO SAY WHAT HE KNEW AND WHEN HE KNEW IT.

HIS OFFICE WAS INVESTIGATING "FEEDING OUR FUTURE" AT THE VERY SAME TIME HE'S MEETING WITH THEM AND THEY VERY SUDDENLY PRODUCE ALMOST $20,000 CHECKS FOR HIS SON AND FOR HIM FOR THEIR CAMPAIGNS.

WHAT WAS GOING IN THE ATTORNEY GENERAL'S OFFICE THAT HE DIDN'T KNOW ABOUT -- >> HE'S GOT A HUNDRED -- MAYBE A HUNDRED THINGS THAT HE'S RESPONSIBLE FOR.

I AM NOT SURE THAT ANY ATTORNEY GENERAL KNOWS EACH AND EVERY ONE OF THE INVESTIGATIONS THAT THEY'RE IN.

THERE'S A LOT OF THINGS THAT THE ATTORNEY GENERAL HAS TO HAVE.

I WOULD ALMOST GUARANTEE YOU THAT IF KEITH UNDERSTOOD THAT, HE WOULDN'T HAVE -- >> I THINK THE REAL PROBLEM HERE IS THAT NOT ONE DEMOCRAT IN ST. PAUL HAS TAKEN A VOTE TO STRENGTHEN ANY OVERSIGHT AFTER THE LARGEST FRAUD, CRIMINAL FRAUD, AGAINST THE FEDERAL GOVERNMENT IN U.S. HISTORY.

NOT A SINGLE DEMOCRAT IN ST. PAUL HAS TONE A VOTE TO TREATED WREN ANYTHING.

>> I DON'T THINK THAT'S TRUE.

>> IT IS TRUE.

>> SENATOR GUSTAFSON HAS A BILL RIGHT NOW FOR THE I.G.

EVEN IN REPRESENTATIVE ROBBINS' COMMITTEE THAT THEY MOVED THINGS THAT WENT THROUGH THAT DEMOCRATS VOTED FOR.

THAT'S NOT TRUE, KURT.

>> IDENTIFICATION IT IS TRUE.

>> NO, IT'S NOT.

>> Cathy: DO YOU SEE ANYTHING COMING OUT OF THIS SESSION, GOING BACK TO SENATOR CHAMPION'S SITUATION, AGAIN, THE ETHICS STANDARDS FOR LAWMAKERS THAT PEOPLE THINK NEED TO BE CHANGED?

DO WE SEE ANYTHING COMING OUT OF SESSION ABOUT THAT AT ALL?

>> AND MORE TRANSPARENCY.

THAT'S PART OF THE PROBLEM.

WHEN THEY'RE INSERTING THESE THINGS WITHOUT ACCOUNTABILITY -- ABOUT GRANTS.RE TALKING- >> RIGHT.

I THINK THAT'S ONE OF THE MOST EGREGIOUS EXAMPLES OF THE LACK OF TRANSPARENCY.

BUT MOST IMPORTANTLY THE LACK OF ACCOUNTABILITY WHEN THEY GO SOUTH.

>> SO THE UNFORTUNATE THICK THAT ANNETTE'S SAYING IS THAT'S NOT TRUE.

WHEN WE STARTED DOING A LOT OF THOSE GRANTS SPECIFICALLY IN COMMUNITIES OF COLOR, I DID IT WITH KURT DAUDT.

WE WORKED TOGETHER ON THOSE ISSUES AND THERE IS A TON OF TREE.

THAT'S SEPARATE FROM "FEEDING OUR FUTURE."

I KNOW THAT'S THE TALKING POINT BUT IT'S JUST NOT TRUE.

>> Eric: LET'S GO TO THE END OF SESSION AS WE HEAD INTO THE FINAL MONTH.

TALKING TO FOLKS THIS PAST WEEK, IT SOUNDED LIKE THE REPUBLICANS' PRICE FOR PLAYING ON THE BUDGET S TO GET SOME POLICY ROLL-BACKS FROM THE EE 23-24 SESSION.

WITH THE TRIFECTA OF THE DFL.

>> I THINK THAT'S TRUE.

TYPICALLY IN THE PAST THAT HAS BEEN THE CASE.

THE DEMOCRATS WANT SPENDING.

AND THE REPUBLICANS WANT TO ROLL BACK SOME POLICY.

AND THAT'S KIND OF THE TRADE.

I ACTUALLY THINK THEY BOTH NEED TO COME TOGETHER.

I SAW THE TARGETS FROM THE HOUSE.

I GOT TO SAY I'M DISAPPOINTED IN BOTH SIDES.

>> Eric: REALLY?

>> THEY'RE SPENDING TOO MUCH MONEY.

THERE WAS LITERALLY -- AND I GET MAD WHEN THEY SAY THERE WAS A 40% INCREASE IN THE BUDGET IN THE LAST FOUR YEARS.

IT WAS ACTUALLY 38%, WHICH IS OUTRAGEOUS AND THEY NEED TO ROLL THAT BACK AND UNWFT EASIEST WAYS TO BE TO SAY, LET'S PUT VERY STRINGENT OVERSIGHT AND SPECIFIC REQUIREMENTS IN PLACE ON HOW THAT'S MONEY GOING TO MOVE, AND IF ANYBODY DOESN'T MEET THAT, ROLL THAT MONEY BACK AND PUT IT BACK INTO THE BUDGET.

YOU CAN SAVE A TON OF MONEY THAT WAY.

>> Eric: THE SENATE TARGET DOES HAVE $350 MILLION FOR REVENUE INCREASES.

>> YEAH -- >> Eric: IS THAT GOING TO HAPPEN?

>> I DON'T KNOW IF THAT'S GOING O HAPPEN.

I THINK THAT THEIR STARTING PLACE TO GET THE CONVERSATION GOING.

THE BIG MONEY IS ALWAYS IN EDUCATION AND HEALTH AND HUMAN SERVICES.

SPECIFICALLY IN ELDERLILY AND DISABLED.

SO I JUST WANT TO MAKE SURE WE SAY THAT.

WE CAN HAVE ALL THE OVERSIGHT WE WANT.

BUT PULLING THAT MONEY ONLY REALLY HURTS PEOPLE.

>> BECAUSE AT THE END OF THE DAY, THESE CONVERSATIONS WITH WASTE AND THIS AND THAT, THEY'RE DESIGNED TO SCAPEGOAT SOME OMMUNITIES AND ROLL BACK SOME REALLY GOOD POLICIES.

>> I THINK AT THE END OF THE DAY, THERE CANNOT BE ANY TAX INCREASES.

I THINK WHAT THEY DID TWO YEARS AGO IS STILL RESONATING IN PEOPLE'S HEADS.

THEY RAISED OUR SPENDING BY NEARLY 40%.

THEY RAISED JUST ABOUT EVERY TAX THEY CAN THINK, AND NOW THEY'RE ENINVENTING NEXT TAXES.

THAT JUST CANNOT HAPPEN THIS YEAR.

>> Eric: LIKE A HEALTH IMPACT FEE?

>> SORE EYE IS A. YEAH.

SORRY.

YEAH.

[Overlapping conversations]