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Wisconsin's Democratic
governor and Republican

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legislative leaders
negotiate a big deal on tax

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cuts and school funding,
and it blows up in the

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Wisconsin Senate. What just
happened? Let's talk about

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it. This is inside
Wisconsin politics.

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I'm Shawn Johnson
here with my

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here with my
colleague Zac Schultz and

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Rich Kremer in Eau Claire.
Hey, guys.

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>> Hello.
>> Hello.

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>> Hey, Shawn.
>> So we are going to have

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plenty of time here to
unpack the motives of all

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the players in this drama
that unfolded at the

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Capitol. But first, let's
start with kind of what led

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to this. For people who
haven't paid attention to

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every twist and turn of
this big deal, we've been

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calling it at the Capitol.
Zac, what was in this thing

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that was negotiated by
Democratic Governor Tony

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Evers and the Republican
legislative leaders?

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>> Well, the top line
picture is it's $1.8

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billion in spending, most
of it one time, only

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looking at the projected
surplus that would be

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available for next year. Of
that $300 million for

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special education funding
for public schools, that's

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been a Democratic priority
for a long time. $350

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million in rebates or tax
buy downs for property

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taxes. That would go money
going to the schools, but

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that they would only use to
reduce property taxes, not

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new spending. And then
there were going to be

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individual rebates for tax
filers, 300 per person, or

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600 for a married couple.
And then we see a match to

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the federal plan for no
taxes on tips and overtime.

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And Shawn, a month ago, we
asked, what's the

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possibility that this could
actually happen? And my

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answer at the time was,
well, we this is the only

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time it could happen
because we have three

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leaders that are all
leaving the stage. It's

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legacy time. Well, we
didn't account for is

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everyone else who's still
running for reelection or

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election in Wisconsin
sinking this deal? Three

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legacy leaders getting the
compromise wasn't enough.

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And to me, this is a
political Rorschach test.

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How you view this
particular deal kind of

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matches your view on
politics for some people

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and for a lot of ordinary
people around the state,

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this was the epitome of a
compromise. You get a

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little bit for one side,
you get a little bit for

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the other side. Everyone
can come away, maybe a

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little dissatisfied, maybe
a little happy. And money

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goes back to taxpayers. At
a time when you're seeing

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the price of gas go through
the roof just to fill your,

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your tank up. And as
they're about to run for

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reelection, those are
things that normally you'd

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want to see politicians
pass. The other side of

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that test is political
purity. And there are a lot

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of people looking at this
deal saying, this isn't as

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good as I would like it to
be, and I think we can do

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better when we have more
power next year.

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>> So it started out the
day, though, looked like

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your average special
session day, like a bill

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that might pass. You have
this big agreement by the

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leaders, by Governor Tony
Evers, the the big Democrat

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and the big Republicans.
You had speeches to start

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the day, including by
Assembly Speaker Robin Vos.

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we listen and that we ares.

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willing to act. And most
importantly, that

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compromise in Wisconsin is
not a dead word. Compromise

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is defined as getting
something that you want by

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giving up something that
your partner or your

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opponent wants. That is
really what we did here. We

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said.
>> So that's when the

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waiting game kind of began.
Rich. We were both watching

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the Senate for a long time
on Wednesday. What was it

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like as the day sort of
played out?

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>> It was a lot of hurry up
and wait. So it's not

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unusual for the Senate to
set a start time for their

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floor sessions, whether it
be in a special session or

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a regular session, and then
blow past that, that's kind

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of unsurprising. But this
time we kept getting these

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notices that, oh, it's
going to be at 3:00. Well,

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it's actually five, five,
45. And then we just went

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with half hour increments,
you know, six, 637, eight,

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eight, you know, and on and
on and on it. They were, I

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want to, I want to say it
was four hours that they,

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it took for them to go from
the first notice, you know,

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when the plan was to meet
at 3 p.m. and when they

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actually met. And then once
they got on the floor, you

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heard some of the same
complaints from Democrats

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and Republicans about this
bill that you heard in the

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Assembly. The opponents
said that they didn't like

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the process of how it was,
you know, thrown together.

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Senate Democrats were out
of the picture, etc. and

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then there were concerns
about costs and this being

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a projected budget surplus,
etc. and how this could

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plunge us into a deficit in
the coming budget cycle.

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>> Yeah. So that night, the
we had a very unusual scene

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kind of play out. The
assembly met after waiting

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all day to see what the
Senate was going to do.

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They passed this bill in
short order. The Senate is

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meeting at the same time,
and it's clear that things

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are not going well there.
You hear a speech from

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Senate Democratic Minority
Leader Diane Hesselbein,

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who made it clear she was
not happy with this bill.

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>> This is a completely
reckless proposal stitched

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together in a backroom deal
by three people who will

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not be running around and
won't be here when the

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consequences of a
multibillion dollar deficit

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comes home to roost. It's
simply something I can't

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support.
>> In. This bill actually

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fails on a vote of 15 to 18,
and I know people probably

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think big deal things pass,
things fail. Bills don't

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actually get to the point
of failure hardly ever in

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the state legislature. If
it doesn't have the votes,

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it does not come to the
floor, especially something

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as big and dramatic as this.
And for the governor to

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negotiate this and his
Senate Democrats stand

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unified against it to help
kill it with a few

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Republicans is something we
do not see every day. Zac,

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what do you think was
motivating Senate Democrats

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here?
>> There's two factors. I

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think. First is they were
insulted. They were left

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out of the loop.
>> That is huge. Actually.

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>> Every single time over
the past few years that

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they've needed to pass a
big budget bill, especially

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with Republicans having a
smaller majority in the

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state Senate. They've had
two members that have voted

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against every bill that
Senator Soros and Kapenga.

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They've consistently said,
we can't support this extra

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spending. We're voting no.
That means in practice,

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Republicans don't have a
working majority when it

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comes to passing that kind
of legislation. They need

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Democratic votes. Governor
Evers knows that Senate

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majority LeMahieu knows
that. Everyone knows they

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need at least a couple
Democratic votes, and

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probably more so. The fact
that they were not

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consulted did not have any
input on this bill and made

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it clear from the very
first time it was announced

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that they were unhappy with
it showed. And I think that

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showed up in that long
pause in the Assembly. The

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Assembly had the votes. It
was they were going to wait

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and see if they had the
votes in the Senate. And

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the second part of why
Senate Democrats were not

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in line with this comes
next fall. And that's what

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the reelection there. They
are not quite certain, but

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very confident that they're
going to flip the majority

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in that chamber and that
when they come to power in

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the next session, they will
not only have a say, they

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will be the deciding
factors and how any bills

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are passed and how budgets
are passed. And so they can

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direct where that money
goes. And if they think

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they get lucky. And there's
a Democratic governor and a

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Democratic assembly, then
they're going to say all

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this money will be
available for us to spend

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in ways that we prefer
instead of having to

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compromise, which is what
has sunk every possibility

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of all these budget surplus
deals since Tony Evers has

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been governor. The fact
that the next election

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might bring better outlook
for each of the sides. And

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so they've decided not to
compromise.

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>> And I think this was a
clear cut case where

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circumstances matter
completely. You know, if if

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Tony Evers were running for
election in November and he

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said, this is my big bill,
Democrats, this is what I

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want to run on. I mean,
they would have voted. They

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would have voted yes. No.
Republicans probably

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wouldn't have brought it up
in that case. So, you know,

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it's a it's a theoretical
exercise. But but Senate

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Democrats, I'm confident,
would have been with him.

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He is not on the ballot,
though, this November, as

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Diane Hesselbein noted, and
Senate Democrats are poised

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to. They think, take that
majority. She has

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essentially been a co
majority leader on some of

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the big bills that have
come through the Senate

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this year, from the budget
to gambling. And so to

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freeze them out of talks
like this, which is the way

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they viewed it, certainly.
And to end up with a bill

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that was pretty Republican
in nature, was about a

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billion and a half in tax
cuts, was not something

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that they enjoyed, you know.
>> Well, and don't forget,

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there is another factor
when it comes to everyone

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looking at the next budget
the next year. And that is

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there's a lot of people who
think we may be looking

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into a recession. Yeah. So
most of this surplus is a

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projection of what the
economy is going to bring

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in for tax revenues. If
there's an economic

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downturn in the next six
months, that money

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disappears all by itself
without having been sent

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out. So you send it out.
Even though most of this is

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one time spending, it may
not be there next year. Now,

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they say even in the worst
of circumstances, at least

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the state will have a
little bit money to start

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the next year with. So that
is a legitimate concern

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considering where gas
prices and grocery prices

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are right now. And with no
end to a war in Iran, that

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the economy could shift and
go down and these tax

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revenues may not
materialize.

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>> Rich Senate Democrats
don't have this power. If

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Republicans just stick
together and all their

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members vote for the bill
negotiated by their leader,

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Devin LeMahieu and Assembly
Speaker Robin Vos. In fact,

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in the Assembly, all the
Republicans did stick

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together, and they voted
for that bill. So what's

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gone on in the Senate with
a few Republicans there who

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decided, yeah, we're just
not going to do this.

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>> Well, what was
surprising is that two of

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the three Republicans that
voted against this proposal,

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they're not running for
reelection. So maybe that

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made them feel freer to
speak their mind. But as

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Zac mentioned, you've also
got Senator Steve Nosse as

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one of them, and he's
pretty well known for

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voting against especially
spending, you know, large

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spending packages. So it
seems like Devin LeMahieu

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didn't have the sort of
control over his caucus

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that Robin Vos did in the
Assembly. That's been

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pretty obvious, given the
past bills, where you need

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a Democratic support to get
them over the finish line.

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But what's also been really
interesting is seeing

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Republicans attacking
Republicans after the fact.

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So in particular, Senator
Van Wanggaard, who is

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retiring, he went on social
media afterwards after the

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bill failed and said it was
a good deal for Wisconsin.

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But, you know, every dem
and nose and Kapenga and

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Rob Hutton wanted to spend
more and keep more of your

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money. So you've got a
Republican saying that

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Steve Nosse wants to keep
your tax dollars from from

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you, which is pretty
interesting in the grand

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scheme of things. But you
also had Democrats kind of

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saying good riddance, Tony
Evers. I mean, it's just

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really fascinating to see
this breakdown. It's it's

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just unlike anything I've
ever seen. And I wanted to

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ask both of you, Shawn, how
many times in your careers

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have you seen a bill pass?
You know, this kind of bill

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with this kind of build up
where you would expect the

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the votes have to be there
before it gets to the floor

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00:11:26,553 --> 00:11:29,156
to avoid embarrassment. How
many times have you seen it

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clear one chamber and then
die in the Senate?

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>> It is pretty rare. I
thought of a couple. One,

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the vote on state employee
contracts ahead of when

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Scott Walker took office.
>> Another one that

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00:11:41,902 --> 00:11:45,005
featured lame ducks.
weird stuff happens at the

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end here when everybody's
position has changed.

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Circumstances matter. But
you had the Assembly

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Democrats passed new
contracts for state

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employees. The thought was
that that would protect

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them. When Scott Walker
took office and Senate

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Democrats, led by Russ
Decker and Senator Jeff

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Haley at the time, voted no,
and they failed. So it has

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happened. Another one on
ethanol mandate way back in

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like 2006, I think. But it
is pretty sparse the way

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this stuff happens.
>> But it does point out

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exactly what we're talking
about. Once a politician is

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no longer running for
reelection, they become a

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lame duck. They lose a lot
of control. What's most

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00:12:25,579 --> 00:12:27,481
impressive about all of
this is Robin Vos holding

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00:12:27,548 --> 00:12:30,851
his entire caucus together,
even though he's going to

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00:12:30,918 --> 00:12:34,054
be exiting stage right, he
still has enough to keep

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00:12:34,121 --> 00:12:37,224
his chamber together.
Senate Senator LeMahieu

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00:12:37,291 --> 00:12:39,493
really never had firm
control over Republicans in

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the Senate. That's always
been called herding cats

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00:12:41,595 --> 00:12:43,897
over there. So that's not
terribly surprised. Kapenga

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00:12:43,964 --> 00:12:46,733
and Soros have made it
quite clear. But all of

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00:12:46,800 --> 00:12:49,703
these people leaving office
really gives people a lot

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00:12:49,770 --> 00:12:52,472
of freedom to think about
their own interests next

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year, completely aside from
what you would expect in

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the typical bill process.
>> Yeah. Steve Nash, I mean,

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has been a thorn in the
side to leadership for his

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00:13:01,348 --> 00:13:03,951
entire career, basically,
or at least.

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00:13:04,017 --> 00:13:08,021
Unapologetically the part
And can you imagine him on

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his last vote ever in the
legislature saying, you

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00:13:11,058 --> 00:13:13,560
know, I'll take one on the
I'll take one for the team

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00:13:13,627 --> 00:13:16,163
for Robin Vos. I mean, I
think it's pretty

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00:13:16,230 --> 00:13:18,732
predictable that he was
going to be a no vote. But

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let's kind of unpack where
Assembly Republicans were

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00:13:20,868 --> 00:13:23,570
on this and why they
decided we're going to take

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this vote, because I think
by the time that they both

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chambers got to voting at
night, I bet you Assembly

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00:13:30,744 --> 00:13:33,046
Republicans knew darn well
that this thing was going

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to fail in the state Senate,
and they wanted to take

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this vote anyway. Why?
>> Because they're all up

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for reelection this fall.
Everyone that's not

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retiring has an absolute
desire to go back to their

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00:13:44,791 --> 00:13:47,928
constituents and say, I was
willing to put $300 in your

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00:13:47,995 --> 00:13:50,564
pocket. I was willing to
give more to the schools. I

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00:13:50,631 --> 00:13:53,233
was willing to lower your
property taxes. It's not my

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00:13:53,300 --> 00:13:55,302
fault this failed. That
does bring us around to

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00:13:55,369 --> 00:13:57,371
some of the interesting
calculations that we're

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looking at, especially on
the Democratic side. So one

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00:13:59,840 --> 00:14:01,808
of the people I was
watching is Jeff Smith,

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00:14:01,875 --> 00:14:03,977
who's a Democratic senator.
He's the assistant majority

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00:14:04,044 --> 00:14:06,547
leader. So he's pretty high
ranking in his caucus. He's

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00:14:06,613 --> 00:14:09,149
going to move up if they
control the chamber. He

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00:14:09,216 --> 00:14:11,552
voted no on this. His
staffers tell me he was no

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00:14:11,618 --> 00:14:14,121
the entire time, mainly for
the structural deficit

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00:14:14,188 --> 00:14:17,357
concerns. But within his
district, one of the

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00:14:17,424 --> 00:14:19,960
Assembly Democrats, Jodi
Emerson, voted yes. You go

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00:14:20,027 --> 00:14:22,896
south from there into La
Crosse. Brad Pfaff in the

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00:14:22,963 --> 00:14:25,732
Senate voted no within his
district, Joe Billings and

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00:14:25,799 --> 00:14:27,868
Steve Doyle, two Assembly
Democrats in competitive

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00:14:27,935 --> 00:14:30,704
districts, both both voted
yes in the Assembly. They

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00:14:30,771 --> 00:14:32,739
understand what it's like
to go back to the voters

300
00:14:32,806 --> 00:14:35,676
and have to say, oh, no, I
voted against this because

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00:14:35,742 --> 00:14:37,678
we'll spend it better next
year when people are

302
00:14:37,744 --> 00:14:40,614
feeling the pinch. Right
now, there's a lot of

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00:14:40,681 --> 00:14:42,683
political calculations that
go into some of these moves,

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00:14:42,749 --> 00:14:45,519
and looking unified as a
team does help. We also saw

305
00:14:45,586 --> 00:14:47,588
another state Senate race.
Howard Marklein voted yes.

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00:14:47,654 --> 00:14:49,990
He's in a competitive
district. Jenna Jacobson,

307
00:14:50,057 --> 00:14:52,426
the Assembly dem who's
running against him, also

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00:14:52,492 --> 00:14:54,862
voted yes. It would put her
in a terrible position.

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00:14:54,928 --> 00:14:57,497
Easy marketing for Marklein
if she voted no on this

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00:14:57,564 --> 00:15:01,068
deal. So some of this has
to be political maneuvering.

311
00:15:01,134 --> 00:15:04,238
>> And, you know, I think
you could look at this bill

312
00:15:04,304 --> 00:15:06,907
and say potentially it's a
little gimmicky, right?

313
00:15:06,974 --> 00:15:10,744
You're going to spend
almost $900 million just on

314
00:15:10,811 --> 00:15:13,313
these $300 checks, and it's
going to be gone. You and

315
00:15:13,380 --> 00:15:16,550
you have lawmakers on the
record from both parties

316
00:15:16,617 --> 00:15:19,052
for bills like this in the
past saying, oh, that's a

317
00:15:19,119 --> 00:15:22,789
gimmick. We can't do that.
But do you want to be which

318
00:15:22,856 --> 00:15:25,425
side of that gimmick do you
want to be on when you're

319
00:15:25,492 --> 00:15:27,594
doing doors in November?
And people are struggling

320
00:15:27,661 --> 00:15:31,231
with costs? It's a popular
kind of bill, giving people

321
00:15:31,298 --> 00:15:33,433
money and saying that you
work together with the

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00:15:33,500 --> 00:15:36,737
other side.
the outside players in this

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00:15:36,803 --> 00:15:38,839
because Tom Tiffany was a
big factor in this. I've

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00:15:38,906 --> 00:15:41,742
seen some Republicans
online saying he would have

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00:15:41,808 --> 00:15:43,844
been better off being quiet,
given how it played out.

326
00:15:43,911 --> 00:15:46,613
Instead, he did come out
against this bill, and he

327
00:15:46,680 --> 00:15:49,283
was on the record talking
to at least one state

328
00:15:49,349 --> 00:15:52,219
senator who did vote for it,
but weighing in on his

329
00:15:52,286 --> 00:15:54,688
concerns about this bill.
What do you make of that?

330
00:15:54,755 --> 00:15:58,158
>> Yeah, from a practical
perspective, I get it from

331
00:15:58,225 --> 00:16:01,128
a political perspective, I
do not I don't understand

332
00:16:01,195 --> 00:16:04,031
what he was doing. What I
mean is, from a practical

333
00:16:04,097 --> 00:16:05,832
perspective, if Tom Tiffany
thinks he's going to be

334
00:16:05,899 --> 00:16:09,436
governor, then I bet he
wants to either have that

335
00:16:09,503 --> 00:16:12,172
money in there so that he
doesn't take office with

336
00:16:12,239 --> 00:16:15,075
the deficit, or if the
economy does, okay, maybe

337
00:16:15,142 --> 00:16:18,445
he wants to come in as
governor and throw a

338
00:16:18,512 --> 00:16:22,716
special session for a Tom
Tiffany tax cut, not a Tony

339
00:16:22,783 --> 00:16:24,885
Evers tax cut. You know,
get things started off

340
00:16:24,952 --> 00:16:28,021
right. From a political
perspective, I don't know

341
00:16:28,088 --> 00:16:31,158
why you come out against
this. I just don't it's

342
00:16:31,225 --> 00:16:35,729
like a theoretical exercise
because you're not in there

343
00:16:35,796 --> 00:16:39,366
voting, but like, why come
out in against a big tax

344
00:16:39,433 --> 00:16:43,670
cut and why why attack Tony
Evers like he's not on the

345
00:16:43,737 --> 00:16:45,672
ballot. All these Democrats
who are also against this

346
00:16:45,739 --> 00:16:49,743
bill might be running
against you in November. So

347
00:16:49,810 --> 00:16:52,679
how do you differentiate
differentiate yourself here

348
00:16:52,746 --> 00:16:56,583
by agreeing with them. I'm
not sure. Now, Rich, one

349
00:16:56,650 --> 00:16:59,086
question I had for you that
we kind of traded notes on

350
00:16:59,152 --> 00:17:01,455
throughout the night was,
will voters actually

351
00:17:01,522 --> 00:17:04,892
remember this? Like, will
anybody be rewarded or

352
00:17:04,958 --> 00:17:08,428
punished?
>> You know, that's that's

353
00:17:08,962 --> 00:17:13,567
a huge question. You all of
what you're saying makes

354
00:17:13,634 --> 00:17:17,004
sense to me, someone who's
been really following this.

355
00:17:17,070 --> 00:17:20,641
But, you know, I also
remember being at a Supreme

356
00:17:20,707 --> 00:17:23,410
Court election night event
and a fellow at the hotel

357
00:17:23,477 --> 00:17:25,546
not knowing there was an
election that day. So

358
00:17:25,612 --> 00:17:27,981
there's a part of me I'm
always skeptical that this

359
00:17:28,048 --> 00:17:30,851
sort of thing will stick in
voters mind. It's different,

360
00:17:30,918 --> 00:17:33,687
I guess, if you're getting
your door knocked

361
00:17:33,754 --> 00:17:36,056
consistently and people are
reminding you of that, or

362
00:17:36,123 --> 00:17:38,225
if you see a lot of
commercials. But, you know,

363
00:17:38,292 --> 00:17:42,296
in the grand scheme of
things, a $300, $600 check,

364
00:17:42,362 --> 00:17:45,232
that's a big deal. But you
know, all the political

365
00:17:45,299 --> 00:17:46,900
infighting and everything
like that. I just I'm not

366
00:17:46,967 --> 00:17:49,937
sure if people will carry
that all the way to

367
00:17:50,003 --> 00:17:53,006
November.
going out there right now

368
00:17:53,073 --> 00:17:56,743
in in national and world
politics, that's for sure.

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00:17:56,810 --> 00:17:58,946
That's all the time we have
for today. Thanks for

370
00:17:59,012 --> 00:18:03,951
joining us. This has been
inside Wisconsin politics.

371
00:18:04,017 --> 00:18:06,086
Wagtendonk will be back
next week. Be sure to

372
00:18:06,153 --> 00:18:10,357
follow us on wpri.org, PBS,
wisconsin.org, YouTube, or

373
00:18:10,424 --> 00:18:13,427
wherever you get your
podcasts.
