I gathered that much, I was more wondering what song she was referencing.
From what I remember, this song was a Girlysound track first, which means it *could* predate Grave Dancers Union.
SA was around since the 80s and toured out of Minneapolis, which has a direct line to Chicago (where Liz was) so it might just be an oblique reference - if I’m not mistaken they were friends. I know they toured together too in the early 90s.
I’m not so sure it necessarily references a specific song or lyric, so much as a general vibe from that era of Soul Asylum that fits in with the vibe of that song.