Klobuchar says she "would have caught that fraud"; Demuth vows to fire all commissioners

Sen. Amy Klobuchar and Minnesota House Speaker Lisa Demuth sparred over the state's fraud scandals and split on the state's role in data center decisions Monday in their first debate for governor.

The candidates met Monday morning in Brainerd, in a forum sponsored by the Minnesota Chamber of Commerce and streamed by KSTP-TV. Klobuchar leads Demuth by about 8 percentage points, 48.7% to 40.3%, in RealClearPolitics' average of recent polls.

Demuth won the Republican primary and Klobuchar won the Democratic primary, CBS News projected. The general election is Nov. 3.

Much of the debate focused on the economy and the business climate, but data centers, a newer issue, drew a clear contrast. Klobuchar signaled a role for state government. Demuth did not.

Demuth called data centers "a local control issue" and said residents should have input as local governments decide whether to allow one.

"The state has to have some involvement. These are major projects," Klobuchar said. "But in the end, if a local community doesn't want to have a data center, then they shouldn't have to have the data center."

On the business climate, both candidates said they would cut red tape on permits and pursue regulatory reform. Both ruled out tax hikes.

Demuth said the current path for business in Minnesota is "unsustainable" and promised to reduce permitting delays, regulations and "burdensome taxes."

"My vision for Minnesota is growth," Klobuchar said. She acknowledged "headwinds," including tariffs she said she detests, the cost of gas and "chaos in Washington," but said tariffs "cannot be an excuse."

The state's fraud scandals, their impact and who is ultimately responsible were another major topic.

Klobuchar contrasted her background with that of Gov. Tim Walz. "I would have caught that fraud. I would've done something about it," she said. She said she would have spent the state's surplus on infrastructure and technology, things that "aren't as sexy."

Demuth noted that Klobuchar had said she would replace some commissioners. "I will be firing all of the commissioners in the state of Minnesota and starting fresh," Demuth said. "We have allowed a culture of waste and fraud to go on far too long."

Demuth argued Klobuchar had done "nothing" about fraud. Klobuchar said she was the one who secured extra prosecutors for then-U.S. Attorney Andy Luger to prosecute it.

In closing, Demuth said she is championing a change from the last eight years. Klobuchar said that in her nearly 20 years of visiting all of Minnesota's 87 counties, she is the person best qualified to run the state.