♪♪ >> ERIC: AS WE NOTED EARLIER IN THE HOUR, DEADLINE WEEK AND BUDGET TARGETS ARE MAJOR MARKERS IN A LEGISLATIVE SESSION.

BUT WITH A TIED HOUSE AND FEDERAL CUTS, BUDGETING AT THE CAPITOL HAS NEW UNCERTAINTY.

POLITICAL REPORTER MARY LAHAMMER GIVES US SOME CONTEXT.

[ Cheers and applause ] >> Mary: A BIG WIN FOR DEMOCRATS IN NEIGHBORING WISCONSIN REVERB RATES IN MINNESOTA.

>> THE OLIVET OLIGARCHS LOST.

DEMOCRACY WON.

SO PRETTY STRONG FEELINGS ABOUT THAT AND I'M REALLY PROUD OF WISCONSIN FOR GETTING OUT AND VOTING.

>> Mary: GOVERNOR WALZ CONTINUED HIS WAR OF WORDS WE LOAN MUSK SAYING THE CEO'S ATTEMPT TO BUY AN ELECTION WAS AN AFFRONT TO DEMOCRACY AND EXPECTS WORSE CUTS ARE COMING.

>> GET RID OF OUR WEATHER FORECASTERS.

OR GET RID OF NASA.

THIS GUY IS MENACE.

HE IS AN UNELECTED BILLIONAIRE.

>> Mary: DEMOCRATIC LEGISLATIVE LEADERS ECHOED THE GOVERNOR'S SENTIMENT.

>> I AM REALLY, REALLY HAPPY TO KNOW THAT THE VOTERS IN WISCONSIN CHOSE PRINCIPLE OVER THE INFLUENCE OF ELON MUSK'S MONEY.

HE GAVE THE CHEESE HEAD A BAD NAME.

>> Mary: REPUBLICANS HERE WERE RELUCTANT TO TALK IN DETAIL ABOUT THE IMPACT OF FEDERAL CUTS.

>> WE WILL KEEP AN EYE ON WHAT IS HAPPENING AT THE FEDERAL LEVEL.

AND AS THAT DOES POSSIBLY HAVE AN IMPACT LATER ON, AGAIN, OUR WORK CAN BE DONE ON TIME.

IF WE WOULD NEED TO COME BACK FOR A SPECIAL SESSION LATER, TO MAKE ANY ADJUSTMENTS, WE ARE OPEN TO THAT.

>> RIGHT NOW THAT'S JUST A DISTRACTION TO THE WORK THAT WE HAVE TO DO.

SO WE'VE GOT ISSUES THAT WE CAN DEAL WITH IGHT HERE IN THE STATE OF MINNESOTA.

AS THE SPEAKER SAID, NCE WE GET GOING DOWN THE ROAD, IF THERE'S A CHANGE GOING FORWARD, WITH FEDERAL DOLLARS, MAYBE WE'LL HAVE TO COME BACK AND ADDRESS THOSE ISSUES.

>> Mary: ONLY THE GOVERNOR CAN CALL A SPECIAL SESSION AND FOR NOW HE'S CALLING OUT THE FEDERAL CUTS AND THEIR POTENTIAL IMPACT HERE THAT ALREADY INCLUDES 170 PEOPLE GONE AT THE DEPARTMENT OF HEALTH WHO WORKED ON DANGEROUS DISEASE TRACKING.

>> PEOPLE ARE OING TO DIE BECAUSE OF THESE CUTS.

>> Mary: AT THE STATE, POLITICS AND POLICY GOT SERIOUS THIS WEEK WITH BILL DEADLINES AND BUDGET TARGETS REACHED BY THREE OUT OF FOUR OF THE LEGISLATIVE LEADERS IN THE POWER-SHARING AGREEMENT.

>> I'M IT OF DOUBLE AGENT, ADMITTEDLY, IN THESE NEGOTIATIONS.

I AM A DEMOCRAT.

TIM WALZ IS MY ALLY.

ERIN MURPHY IS MY ALLY.

AND SO I NATURALLY SEE THE WORLD THE WAY THEY DO.

BUT I'M ON TEAM HOUSE.

>> THIS IS A VERY GOOD START OF THE PROCESS.

THIS IS THE FIRST TIME IN A NUMBER OF YEARS THAT WE HAVE THAT IMPENDING DEFICIT AS WE'VE TALKED ABOUT AND THAT CAN'T BE IGNORED.

>> Mary: HOUSE LEADERS PUT POWER-SHARING TO ITS FIRST REAL TEST.

>> WE ARE IN AS YOU KNOW, UNUSUAL CIRCUMSTANCES WITH A TIE.

IT'S NEVER BEEN DONE BEFORE.

WE'VE NEVER HAD CO-CHAIRS BEFORE, NEGOTIATE BUDGET TARGETS.

>> THIS, I THINK, WAS THE FIRST MAJOR TEST OF OUR ABILITY TO WORK TOGETHER UNDER THIS POWER-SHARING AGREEMENT.

AND I'M REALLY PLEASED THAT WE PASSED THAT TEST.

>> Mary: BUDGET TARGETS ARE SET TO GUIDE THE REST OF THIS SESSION.

>> THESE BUDGET TARGETS REPRESENT ACOMB PROMISE BETWEEN DEMOCRATS AND REPUBLICANS.

AND IF DEMOCRATS WERE SETTING TARGETS ON OUR OWN, THESE TARGETS WHO OF COURSE LOOKED VERY DIFFERENT BECAUSE WE WOULD HAVE ASKED THE WEALTHY AND LARGE CORPORATIONS TO PAY THEIR FAIR SHARE.

>> Mary: THE GOVERNOR HOSTED LEGISLATIVE LEADERS AND KEY CHAIRS TO TALK ABOUT THE CHALLENGES AHEAD.

>> A BROADER MEETING WITH SENATE AND HOUSE LEADERSHIP, BIPARTISANLY, BUT THE LEADS, THE CHAIRS AND SOME OF THE STAFF.

AND I THINK THE PROGRESS MADE, WE HAVE A CHART OF SIDE BY SIDES COMPARING APPLES TO APPLES TO APPLES, THE PROPOSALS THAT ARE BEING MADE FROM THE BUDGET THAT I'VE HAD OUT, NOW A HOUSE BUDGET AND A SENATE BIT.

>> ONE OF THE MOST ENCOURAGING THINGS THAT I'M SEEING OVER TIME IS THE GOVERNOR'S CALLING US TOGETHER.

AS YOU HEARD FROM ME SPECIFICALLY, WANTING TO MAKE SURE THAT THAT HAPPENS, THAT WE CAN START THES.

>> THERE ARE A NUMBER OF PEOPLE NOW EDGE GAUGED IN THIS ISSUE OF THE WORK TO BALANCE THE BUDGET TOGETHER.

I AM REALLY PROUD OF THE SENATE D.F.L.LERS THAT WE'VE PUT TOGETHER TARGETS THAT BALANCE OUT INTO THE TAILS.

SO FOR ALL FOUR YEARS.

>> WE'VE GOT A MONTH AND A HALF LEFT BEFORE THE END OF SESSION, BUT VERY OPTIMISTIC THAT WE CAN GET FINISHED ON TIME.

>> Mary: SO FAR, COMMITTEE COTHEIR CHAIRS ALSO FEEL OPTIMISTIC ABOUT THEIR UNIQUE MODEL.

>> THE SUPER BOWL, IF YOU WILL, IS THE FINANCE BILL, AND TARGETS CAME UTILITY AND REPRESENTATIVE KLEVORN AND I PRETTY MUCH GOT ON THE PHONE MINUTES AFTER WE HEARD WHAT THEY WERE.

AND SAID, OKAY.

WE'LL HAVE TO FIGURE THIS OUT.

AND I THINK WHAT A LOT OF FOLKS ARE WONDERING IS, HOW DO YOU IN A TIE, STICK THAT LANDING?

>> Mary: THE JOKE KIND OF IS THAT EVERYBODY HATES THEIR TARGETS?

DO YOU EQUALLY?

>> NO, I LIKE OUR TARGET MUCH MORE THAN JIM DOES.

>> I WAS ADVOCATING FOR ZERO.

>> I THINK IT'S IMPORTANT TO REALIZE, THAT HOSE TARGETS, THEY'RE NUMBERS, BUT THEY REPRESENT PEOPLE, JOBS, SERVICES TO THE STATE.