Lisa Demuth says legislative experience and fraud-fighting agenda prepare her to lead the state
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The top Republican currently in state government has designs on moving even further up the Capitol ladder.
The Speaker of the Minnesota House of Representatives, Lisa Demuth, is a leading contender for the GOP nomination for governor — that will be decide by voters in an Aug. 11 primary that's closing in fast.
MPR News host Clay Masters spoke with Demuth about her campaign to be the state’s next governor, any why, despite not receiving the Republican endorsement, she is confident in primary victory.
The transcript below has been lightly edited for clarity. Click the audio player above to listen to the conversation.
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You say the most important thing you want to do as governor is eliminate fraud in the state; how will you do that?
We've done some work already in my time in the legislature over this last year with finally passing the Office of Inspector General bill, additional whistleblower protections. But when I look at being governor and really holding agency commissioners accountable to make sure that there's not going to be fraud going on in our various agencies within the state, it first starts with choosing commissioners that are qualified for the job and will be held accountable.
That's the first step, then putting in additional protections within internal controls in every area that affects our state. Going forward, as we're looking at how dollars are spent, making sure that they're getting to the people that need them the most and having that oversight that has been sorely lacking.
Did you have any reservations about growing government to keep an eye on government?
I did not. I think that's a fair question to ask. Do we need to grow government to keep an eye on government? I would say, with nearly $10 billion of fraud in the state of Minnesota, record fraud, and higher taxes, the return on investment for the Office of Inspector General is going to pay off.
There are law enforcement capabilities within that office. I didn't want to create an Office of Inspector General without any teeth. It needed to be a well-founded bill, and you saw that there was bipartisan support.
When I've talked to people across the state of Minnesota, the extent of the fraud here is very, very frustrating to hardworking Minnesotans that trust the state with their taxes and yet they've really been hurt by the amount of fraud. So I didn't have any reservations in expanding to this point. I think the savings are going to pay off.
Was fraud the main reason you got into this race?
I would say that fraud was definitely a high priority, knowing how much fraud has gone unchecked — one of the top things. But, overall, looking at the state government, we have more than doubled our budget in the last 14 years. This is not affordable. And then when I've seen mandates on businesses, on schools that make Minnesota a harder place to be, that is some of what I would also like to see improved for all Minnesotans.
Just a clarification here: the $10 billion is a prosecutor's allegation that has not yet been proven or alleged in court complaints — correct?
That is correct. We know that is suspected. Some of it is proven, but I will say, though, there was an $18 billion surplus in 2023 that was completely spent under one-party Democrat control. Not only was that surplus spent, all of our taxes and fees, our state budget were increased by another $10 billion for the same population, just under 6 million people.
So, to know that government has grown to that extent means that there is heavy fraud, and that's what needs to stop.
You sought the Republican endorsement, and it did not go to you — Kendall Qualls is who it went to. How much are voters thinking about an endorsement from the party as you've been out shaking hands and talking with people?
As I've been all across the state of Minnesota, people have said that they look forward to voting in the primary and supporting me. Now, the people that attend the convention — that's about 2,000 people. There were technology issues that were noted by the state party chair, which is why I went forward into the primary. Being released from saying that I would abide by the endorsement, released by the state party chair for all people that were running that didn't receive that, but I think people across the state want to be involved in the process rather than just 2,000 people.
Will you back Kendall Qualls if he wins the primary?
I am looking forward to defeating any of the Republican candidates that are running for governor right now. I'm looking forward to defeating them in the primary on Aug. 11, and we will have that conversation when I am the nominee. I fully expect that I've worked hard and will gain that victory and that nomination with winning the primary.
My Pillow CEO Mike Lindell got the endorsement of President Donald Trump. Many in your party are saying he's a flawed candidate. Do you agree with that?
When I look at a good candidate — Republican or Democrat — that is someone who is involved in the state. That they've lived here. I can vote in the state of Minnesota. I have always paid my property taxes, my business tax. I don't have lawsuits against me, and so I come into the race as a Republican candidate without that type of baggage.
And then you add on the experience that I've had, even just in four short terms in the legislature, looking at state government, realizing what needs to change and how we can improve things for all Minnesotans. That is what will make a good Republican candidate when we're looking at finally getting to that November election.
As you reflect on the last two years where there was a 67-67 split in the House, where you've had to work in a bipartisan manner with two different leaders, seen one tragically assassinated as well, what do you think you benefit from that dynamic that would help you in the lead role of the state of Minnesota?
I've thought about this a lot. What have I learned? And what can I bring forward that would make Minnesota just a little bit better? Any time that I've had an opportunity to serve in my school board or in the legislature, I look at that as serving the people that are influenced by those decisions.
With the tie in the House of Representatives, specifically, and I go back to that night of the 2024 election, and Melissa Hortman and I then had the opportunity to figure it out. We needed a pathway forward how the next two years would look, and I'm proud of the work that we did. Both in setting up the organizational agreement. Democrats stayed out for 23 days; we had to figure out a way through, and we still did good things and got bills passed and kept the government going. Some improvements. But it wasn't all Republicans weren't happy. All Democrats weren't happy. It was a good combination given what the voters sent us with a tie.
My hope, though, was that after two years in a tie, [Hortman] and I could go back to our caucuses, for whoever was going to be in charge in 2027, and say we've figured out that people can work together when they have to. Why don't we take some of those lessons forward, regardless of who the majority was? You know, with the tragedy, she is no longer with us, and that can't be. But there are still 131 legislators that had that experience of how you could work together when you had to, and I am hoping that will change our legislature for the better going forward. In the work that's done, regardless of who has the majority.
Those are lessons that I'm taking with as I am running and hopefully will win as governor to lead our state as a CEO, but governor of the state. Collaborative approach, empowering people to do the work that they have been assigned to do and serving the people of Minnesota. That those are the lessons that I've learned, and it's proven that it can work well.
