Good morning.  A programming note: No Politics Friday on the air today.

Things have been a bit bumpy lately between Gov. Tim Walz and public sector unions. Clay Masters reports on the multiple fronts where tensions are noticeable between unions and the Walz administration. It’s fed by possible layoffs, a return-to-office directive and tense contract negotiations that are off to a choppy start. There has been a notable shift in tone given that Walz has delivered many wins to unions since first being elected governor in 2018. Walz says there is a “healthy tension” but acknowledges “they’re probably not going to throw a picnic for me.” As governor, Walz is the head of the executive branch of state government. Nearly 90 percent of those employees belong to a public sector union. During a virtual town hall this week hosted by the Minnesota Association of Professional Employees, there was talk of withholding backing to Walz if he runs again and considering a strike if contract bargaining doesn’t change course. “All gas and no brake,” was the way one union leader put it several times. MAPE has a series of informational pickets planned next week.

Stop us if you’ve heard this one before but legislative leaders and the governor say they’re almost finished with state budget bills and preparing to call a special session . Walz, House Speaker Lisa Demuth, House DFL Caucus Leader Melissa Hortman and Senate Majority Leader Erin Murphy said that remaining budget bills were days, if not hours, away from completion. “It could be that there's a couple issues that are hangovers until Friday midday, but my hope would be that 98 percent of the work would be delivered to the revisor tonight,” Hortman told reporters Thursday. Walz said he hopes to call a special session early next week. “I think the goal is still early to mid next week to get the special session and done,” he said. Details for the special session have yet to be agreed to by the leaders. 

And apparently there’s some disagreement about what role the one minority leader in the Legislature should have in setting that deal and others. Unlike in leader discussions to set a global framework for the state budget, Senate Minority Leader Mark Johnson has not been involved in meetings to finalize budget bills. Johnson, in a statement Thursday, blamed Democrats for not prioritizing a public construction projects bill this year. “I have not received a single counter proposal from Democrats,” he said. “Democrats are the only ones unwilling to work together to pass a bonding bill.” Murphy — the majority leader — told reporters that she continues to speak with Johnson on a regular basis. But she said Senate Republicans are the ones who aren’t coming to the table to strike a deal. “It appears my Republican colleagues are not interested in bonding at all. They are not engaging,” she said. Johnson opted not to sign the agreement for the broad budget framework after it was finished, potentially freeing himself up to vote up or down on budget bills (and maybe providing him some leverage). But Hortman says it also got his invitation to negotiations revoked. “It is with Sen. Erin Murphy's invitation and good graces that he was at the table until we signed a deal which he did not sign. And now we are at the part of the process where we're going to implement the deal. And so since he is not part of the deal, it doesn't make sense for him to be there,” Hortman said.

As deals get buttoned up, more of them are making their public debut in working group meetings and public postings. Groups that crafted environment and natural resources and commerce budget bills met to air the proposals. And the budget bill funding education from preschool through high school was posted. Leaders said additional working group meetings are set to be scheduled early next week for bills that are still outstanding.

Legislative leaders and Gov. Walz signed off on a deal that will make adult immigrants who meet income standards to enroll in MinnesotaCare ineligible starting next year. That’s a blow to thousands of people who enrolled starting earlier this year and were able to access health care because of the public insurance coverage. Star Tribune reporter Allison Kite reports on how immigrants on the program are taking the news, as well as the political implications of moving the proposal as part of a broader budget framework.

The environment and natural resources bill is ready after getting through the working group process. The bill will open up bass fishing to be continuous, increase boat surcharge fees to help fight invasive species and increase consequences for abandoning a boat. The bill was agreed to during a hearing Thursday. It also includes a provision to cut the cost of a fishing license for disabled veterans and makes exceptions for the sales of some items that have PFAs in them, including ATVs for children and fire fighting foam at airports. Rep. Peter Fischer, DFL- Maplewood, said the bill reflects the divided government, "This is a bill that's got some wins for everybody and some things that we're all uncomfortable with, but it's a bill that we can also vote for." Among the changes made on the environment side: adding more staff to help speed up the permitting process and adding staff to an office that helps small businesses and municipalities navigate that process. A Capitol View item earlier this week incorrectly described the bill as including an ATV fee increase. Those fees will not increase under the bill.

The clock is running down on the deadline to claim lost property to tax forfeiture as part of a class-action settlement. Our colleague Kirsti Marohn reports that Minnesotans who’ve lost property from forfeitures or their loved ones can file a claim until June 6  — a week from today. The settlement window comes after the U.S. Supreme Court in 2023 ruled that Hennepin County violated the rights of a Minneapolis woman when it sold her condo and kept money in excess of what she owed in property taxes. More than 6,000 properties are included in the settlement group and claims could vary widely.