APPRECIATE YOU COMING OVER.

>> Cathy: THANK YOU.

TAKE CARE OF YOURSELF.

>> THANK YOU SO MUCH.

>> Cathy: WELLING POLICYMAKERS ARE ALSO ASSESSING THE POTENTIAL IMPACT OF THE FEDERAL FREEZE AND CUTS IN THE BILLIONS IN A STATE THAT HAS TO BALANCE ITS BUDGET THIS YEAR.

REPORTER MARY LAHAMMER SHOWS US THERE IS SOME HOPE ON THE HORIZON AS THE HOUSE FOUND THE FIRST BIPARTISAN SUPPORT NECESSARY TO PASS A COUPLE OF BILLS.

[ CHANTING ] >> AS PRESIDENT TRUMP, ELON MUSK, AND CONGRESS ATTEMPT TO CUT AS MUCH AS $2 TRILLION, THE STATE MUST BALANCE ITS BUDGET AND EXPECTS BILLIONS TO DISAPPEAR.

>> MEETING OF THE SENATE FINANCE COMMITTEE WILL COME TO ORDER.

>> FOR A STATE SENATOR WITH NEARLY 40 YEARS OF EXPERIENCE WHO'S NOW CHAIRING THE KEY FINANCE COMMITTEE, HE FEARS THIS COULD BE WORSE THAN ANY OF THE BIG BUDGET SHORTFALLS OF THE PAST.

>> THERE'S NOTHING LIKE THIS IN ANY OF OUR PREVIOUS GOVERNORS, ANY OF OUR PREVIOUS LEGISLATURES.

THIS IS TOTALLY UNPRECEDENTED AND I'M VERY SCARED THAT WE'RE TALKING WORSE THAN RECESSION.

>> ENATOR MARTY'S COUNTERPART IN THE HOUSE WHO WILL SEE EVERY BUDGET BILL ALSO HAS DECADES OF EXPERIENCE AND HE ISN'T PANICKING YET.

>> THE IMPACT OF NOT JUST PRESIDENT TRUMP'S FEDERAL FREEZE BUT ALSO REPUBLICAN MEMBERS OF CONGRESS MAKING THE MINNESOTA BUDGET VERY DIFFICULT.

ARE YOU FRUSTRATED WITH WHAT'S COMING OUT OF D.C.?

>> WELL, MY TAKE ON D.C. IS THAT A LOT OF SPAGHETTI IS BEING THROWN AGAINST THE WALL RIGHT NOW BUT IT'S NOT ALL GOING TO STICK.

AND WE DON'T KNOW WHICH PIECES OF SPAGHETTI ARE GOING TO STICK.

WE HAVE A BUDGET TO PUT TOGETHER BASED ON THE SITUATION HERE IN MINNESOTA THAT WAS CREATED BY THE WORK THAT WAS DONE BY THE TRIFECTA LAST BIENNIUM.

>> GOVERNOR WALZ WHO HAD TO STAY IN THE STATE AFTER A FAILED VICE PRESIDENTIAL RUN IS UNIQUELY FEELING THE LOSS AS HIS BUDGET SUFFERS THE CONSEQUENCES.

>> AS THE STATE OF MINNESOTA PREPARES TO SERVE OUR CITIZENS AS WE WATCH THINGS IN D.C. CONTINUE TO THREATEN TO RIP AWAY THOSE MOST IMPORTANT THINGS.

>> SENATE REPUBLICANS SAY SOME OF THE GOVERNOR'S RHETORIC WILL HARM THE HARD WORK THEY'RE FACING.

>> THIS ISTRACTS FROM THAT WORK.

WHEN WE START CALLING EACH OTHER NAMES, WHEN E SIT DOWN IN THOSE ROOMS AND TRY TO HASH THIS UT, IF I KNOW THAT THAT'S WHAT YOU THINK I AM HAS WE'RE SITTING IN A ROOM, A NAZI AND FASCIST, IT'S HARD TO BUILD A RELATIONSHIP OFF OF THAT.

>> WE'VE GOT FOLKS THAT APPARENTLY CAN'T CALL PEOPLE WEARING SWASTIKAS WALKING THROUGH THE STREETS OF OHIO NAZIS AND THEY'RE GOING TO SPEND THEIR TIME ASKING ME TO APOLOGIZE FOR HAT.

>> SENATE DEMOCRATS WITH A ONE-VOTE MAJORITY ARE TRYING TO HUMANIZE THE CUTS COMING.

>> THIS IS A STORY BOUT OTHER PEOPLE.

BUT FOR ME THIS IS A STORY ABOUT US.

IT IS A STORY ABOUT WHO WE ARE, WHAT WE BELIEVE IN, WHO WE'RE GOING TO FIGHT FOR IN THE STATE OF MINNESOTA AND IT BEGINS NOW.

>> NEXT WEEK THE STATE BUDGET FORECAST IS SCHEDULED TO BE RELEASED AND THAT USUALLY GETS BUDGET TALKS GOING IN EARNEST HERE.

BUT WITH ALL THE UNCERTAINTY IN WASHINGTON THERE IS MORE UNKNOWNS AT THE STATE CAPITOL.

>> AND WE'RE GOING TO HAVE TO MAKE SOME VERY TOUGH DECISIONS.

>> I'M THINKING ABOUT THE CHAOS AND CRUELTY AND THE CORRUPTION THAT WE ARE SEEING AT THAT LEVEL.

>> THEY'RE ONLY GOING TO LOOK FOR WASTE, FRAUD, ND ABUSE.

THAT PEOPLE ON MEDICAID ARE GOING TO CONTINUE TO GET THEIR CHECKS.

>> FEDERAL FUNDS MAKE UP ONE-THIRD OF THE STATE'S BUDGET AND AS WE THINK ABOUT ALANCING OUR BUDGET THIS YEAR IT IS ALMOST IMPOSSIBLE TO DO THAT IF THIS RESOLUTION PASSES.

>> 76% OF THE POPULATION SUPPORTS THE EFFORTS TO TRY TO UNCOVER WASTE, FRAUD, AND ABUSE.

>> IF WE HAD A STATE SENATOR THAT WAS OPERATING WITH THE TYPE OF CONFLICT OF INTEREST OF ELON MUSK WE WOULD BE TEARING THAT STATE SENATOR TO BITS.

>> THE BILL IS PASSED AS AMENDED AND ITS TITLE IS AGREED TO.

[ Banging Gavel ] >> THOUGH THE WEEK ENDED ON A HIGH NOTE AS THE HOUSE FINALLY FOUND THE BIPARTISAN VOTES NECESSARY TO PASS BILLS.

>> THAT IS GOING TO SHOW MINNESOTANS THAT AS WE'VE TALKED ABOUT BALANCED GOVERNMENT, WE CAN WORK TOGETHER, DEMOCRATS AND REPUBLICANS, EVEN THOUGH WE HAVE A ONE-SEAT ADVANTAGE RIGHT NOW, THAT WE CAN STILL DO THE RIGHT THING FOR MINNESOTANS.

>> AND MEMBERS CONGRATULATED THEIR HISTORY-MAKING SPEAKER, LISA DEMUTH, BEING NAMED WOMAN OF THE YEAR BY USA TODAY FOR MINNESOTA.

>> JUST REALLY AN HONOR TO SERVE IN THAT ROLE.

IT'S A LITTLE BIT INTIMIDATING TO HAVE ATTENTION FOCUSED ONCE AGAIN ON ME, BUT REALLY HONORED TO BE NAMED MINNESOTA WOMAN OF THE YEAR.

>> PUT YOU UP THERE WITH LIKE TIM WALZ OF MINNESOTANS WITH NATIONAL PROFILES.

>> I -- I CAN'T SPEAK TO THAT.

[ LAUGHTER >> COULD YOU RESPOND TO THE NEWS OUT OF THE OTHER CHAMBER SPEAKER DEMUTH NAMED WOMAN OF THE YEAR FROM USA TODAY FOR MINNESOTA?

HAD YOU HEARD THAT >> BREAKING NEWS, WAY TO GO.

I CAN'T IMAGINE ANYBODY THAT DESERVES IT MORE IN MINNESOTA THAN SPEAKER DEMUTH FOR WHAT SHE HAS BEEN THROUGH HESE LAST FEW MONTHS TRYING TO GET THE HOUSE ORGANIZED.

THAT'S GREAT NEWS SO THANKS FOR SHARING THAT, MARY.

>> DO YOU THINK THERE'S A BIGGER PLATFORM AND BIGGER JOB FOR HER?

>> WELL, IT SURE SEEMS LIKE IT.