Good morning.  The boys of summer are starting their spring.

January was a down month for Minnesota state finances. A monthly update from the state agency that manages the budget said tax collections were about two percent lower than expectations last month, or $64 million. Individual income and corporate franchise taxes both missed the mark. Sales taxes were ahead of projections. Year to date in the fiscal year, Minnesota is still ahead of the revenue pace by $315 million, or 1.7 percent. This is the final monthly look ahead of a comprehensive economic forecast that will set the parameters for the next budget. That is due in early March. All told, Minnesota took in slightly more than $3 billion in revenue in January.

Anti-fraud bills are populating committee agendas this week in the Legislature. The House GOP has made it a top — if not the top — priority of the session given all the stunning headlines of misused money in recent years. Clay Masters reports on the new House Fraud Prevention and State Oversight Policy Committee's first meeting and where it fits into the broader discussion. Other bills are before the House and Senate State Government committees today. It's fitting timing given the start to the federal jury trial of Aimee Bock, who was leading Feeding Our Future at the time of a major fraud investigation at the child nutrition cooperative. Bock denies breaking the law, but millions of dollars there and millions of dollars in other programs haven't gone to their intended purpose. There could be some bipartisan work here but only after the parties get what they need out of the discussion.

A week into their latest run as a majority caucus, the Senate DFL is making its agenda clear(er). And it's filled with a bunch of new priorities, in contrast to the past couple of years when the sky was the limit. Part of that is the budget constraints lawmakers are under; part is the fact that the House GOP is in charge for now and the other body could be tied come session's end. So here are the toplines: Senate DFL leaders say they'll work to balance the budget and to fight changes in Washington they say could hurt Minnesotans. They also want to protect laws passed in the prior two years, such as paid sick and safe time, a crackdown on labor misclassification and raised minimum wages for caregivers and rideshare drivers. "They're very human and tangible, and Minnesotans will live better lives for generations because of the laws and budgets the people called for," said Sen. Clare Oumou Verbeten, DFL-Roseville. "And I want to be very clear that we will not roll back or bargain with them in this session or the next." Senate Majority Leader Erin Murphy said the session's work revolves around the state budget given that a new one must be enacted. "Top priority for us is balancing the budget, and we're going to do that equitably for communities across the state of Minnesota, focusing on ways to reduce costs in child care and housing and in health care, while investing in important things like infrastructure and jobs," she said. DFLers say they might have to shore up poultry inspections in Minnesota during a bird flu outbreak as federal money becomes less certain.

An amended criminal complaint now includes a second felony charge against Sen. Nicole Mitchell. A felony burglary trial has been put off until June at the earliest for the Woodbury DFL senator after a judge agreed she could invoke a legislative privilege limiting court proceedings during a session. In the new complaint, Becker County Attorney Brian McDonald has added a charge of possession of burglary or theft tools to the burglary charge. Both are felonies and could bring prison time if she is convicted. It stems from an April 2024 arrest at her stepmother's home in Detroit Lakes as Mitchell sought to retrieve items belonging to her late father, according to court documents. Prior filings have indicated that Mitchell was in possession of a flashlight and a blue crowbar as officers encountered her in the basement of the home. They noticed the likely entry through an egress window. The new complaint includes more details about her alleged interaction with police. It says Mitchell told an officer "I'm just hoping this mistake won't completely f*** up my life" and that she voiced alarm about affecting her military retirement. Mitchell has said it was a misunderstanding and has pleaded not guilty. She and her stepmother hadn't been speaking in the month leading up to the incident. An ethics hearing in the Senate is on hold pending the resolution of the criminal case and efforts to force her from the Senate haven't advanced. Senate Minority Leader Mark Johnson said Mitchell should go: "End the sideshow and let the voters pick a new senator," he said. Mitchell's attorneys said the new charge might require another arraignment and a new omnibus hearing, which could further delay the case.

While the voting is yet to come, a tranche of bills have already been put on the table. The Senate, which has been a functioning chamber since Jan. 14, is outpacing the House in bill introductions so far. The Senate, although half the size in membership, is sitting on a pile of 1,254 bills as of Monday. The House, which really only got going last Thursday, now has 308 officially introduced . Most bills need a companion to become law, although there are workarounds. In other words, expect there to be equilibrium at some point. Among the batch of House bills introduced Monday: proposed restrictions on what schools can teach that might stray into "racist or sexist" concepts; a no-tax-on-tips equivalent of President Donald Trump's national pledge; measures to allow guns at the State Fair but bar them close to or in polling places; new limits on the governor's use of executive authority; and curbs on social media algorithms that target children.

Another sign the session is officially underway? Gov. Tim Walz brought baked goods to lawmakers. Clay has this report: Accompanied by the first lady and staffers, Gov. Walz handed out dessert bars to members of the House. Walz traditionally does this on the opening day of the legislative session as a sign of bipartisanship. "With everything being this close, compromise, everyone needs to go into this recognizing you're going to have to compromise to get some things done. And I think that's hopeful," he said. Walz says his office will present the Legislature a revised budget for them to work with. As for the bars, this year there were chocolate M&M and blackberry crumble.

Programming note: Former National Security Adviser Jake Sullivan will be on "Minnesota Now" today.  The Minneapolis native worked on Sen. Amy Klobuchar's first U.S. Senate campaign and, as staff go, quickly rose to the highest levels of U.S. political power. He spent four years helping to shape former President Joe Biden's foreign policy agenda and was involved in the U.S. response to events from the Russian invasion of Ukraine to the Israel-Hamas war in Gaza. Before that, he was Hilary Clinton's deputy chief of staff when she served as then-President Barack Obama's secretary of state. He played an influential role in orchestrating the Iranian nuclear deal. He was reportedly voted "most likely to succeed" by his Southwest High School graduating class. You can hear his conversation with Nina Moini at noon today.

Another DFLer is in the race for party chair. Jack Lindsay says he's running for the post that Ken Martin is leaving as he ascends to the Democratic National Committee Chair. Longtime party strategist Richard Carlbom quickly opened a campaign for the chair post, which will be decided in late March, and scored some big-name backing. Others are also contemplating a run. Lindsay is touting his experience as a local organizer and campaign volunteer. In a press release, he said he won't use platforms or products owned by Google, Meta, Amazon or X "whenever possible" because he said it will show party members "he is committed to taking on the billionaire oligarchy that has taken over our government."

Parties that lose power often go through a soul-searching and reframing process, but so do those who gain power in an election. Ryan Faircloth at the Star Tribune has a good look at the Republican Party of Minnesota's tricky balance between its mainstream, its grassroots and the places where those two factions diverge. New Chair Alex Plechash is looking "to make peace with anti-establishment activists heading into the 2026 election," Faircloth writes. That in itself has inflamed tensions because those same forces have been the most critical of the moves in the now GOP-led House. The ability of Republicans to patch up old and deep-seated wounds could determine how the party fares next year when the governor's office, a U.S. Senate seat, all 201 legislative spots and much more are on the ballot.