>> CATHY: A LONG-STANDING TRADITION HERE ON "ALMANAC" HAS BEEN BRINGING IN MINNESOTA'S CANDIDATES FOR GOVERNOR FACE-TO-FACE FOR A DEBATE.

DFL NOMINEE SENATOR AMY KLOBUCHAR HAS DECLINED REPEATED INVITATIONS TO JOIN US THIS EVENING.

SHE DID CHAT WITH POLITICAL REPORTER MARY LAHAMMER IN A STORY YOU CAN FIND ON OUR WEBSITE.

ACCEPTING OUR INVITATION IS REPUBLICAN CANDIDATE AND MINNESOTA HOUSE SPEAKER LISA DEMUTH.

THANK YOU FOR BEING HERE.

>> THANK YOU, CATHY.

GREAT TO BE WITH YOU TONIGHT.

>> Cathy: IF YOU ARE ELECTED, YOU'RE GOING TO NEED TO QUICKLY PROPOSE A NEW STATE BUDGET.

AND THERE'S A LOOMING SHORTFALL THAT YOU'RE GOING TO NEED TO CONSIDER.

WHAT'S GOING TO BE THE MOST PAINFUL PART OF THE BUDGET TO CONTEND WITH RIGHT OFF THE BAT?

>> WHEN WE LOOKED AT THE STATE BUDGET AND IT HAD DOUBLED THE LAST TEN YEARS UNDER DEMOCRAT CONTROL, WE HAVE NOT DOUBLED THE POPULATION AND WE HAVE RECORD FRAUD, AN ESTIMATED $9 BILLION OF FRAUD.

UNDER MY TIME AS SPEAKER, WHEN WE SETTLED THE BUDGET FOR TWO YEARS IN 2025, WE MADE A REDUCTION OF $5 BILLION IN SPENDING, SO WHEN I LOOK AT OUR STATE BUDGET GOING FORWARD, MY PLAN S TO MAKE SURE WE ARE RIGHT-SIZING GOVERNMENT.

WE NEED TO CUT OUT WASTE, DEFINITELY CUTTING OUT FRAUD, AND TURN AROUND AND MAKE THINGS MORE AFFORDABLE TO MINNESOTANS.

THAT IS MY PRIORITY AS WE GO FORWARD.

>> Cathy: I WONDER ABOUT EDUCATION, YOU KNOW, BECAUSE K-12 SCHOOLS, OF COURSE, HAVE LONG COMPLAINED ABOUT BEING UNDERFUNDED, MINNESOTA STATE, UNIVERSITY OF MINNESOTA SAY THEY'RE UNDERFUNDED, SO WHAT WOULD EDUCATION FUNDING LOOK LIKE UNDER A DEMUTH EDUCATION.

>> SO EDUCATION SAY PRIORITY TO ME AS IT IS TO MANY PEOPLE.

>> Cathy: IT IS A BIG CHUNK OF THE STATE BUDGET.

>> IT IS A LARGE LARGE CHUNK.

AND WHEN WE LOOK AT WHY WE HAVE BEEN INVESTING A HIGHER DOLLAR AMOUNT PER STUDENT IN OUR PRE-K-12, HIGHEST AMOUNT WE'VE EVER INVESTED, WITH SOME OF THE WORST OUTCOMES WE'VE EVER EXPERIENCED, ONLY HALF OF OUR KIDS ARE READING AT GRADE LEVEL.

CATHY, WHEN WE LOOK AT THAT BUDGET, WE HAVE TO MAKE SURE THAT WE ARE INVESTING IN THE WAYS THAT KIDS NEED TO BE ABLE TO BE PREPARED FOR THE FUTURE.

ONE OF THE THINGS THAT WE HAVE THAT I ILL DO DAY ONE WHEN ELECTED AS GOVERNOR, IS OPT US INTO THE SCHOLARSHIP GRANTING ORGANIZATION.

>> Cathy: WHAT'S THAT?

>> GOVERNOR WALZ HAS OPTED US OUT OF THIS.

THIS IS A $1,700 PER PERSON TAX CREDIT, A FEDERAL TAX CREDIT THAT GOES INTO EFFECT JANUARY 1st OF 2027.

IT IS ESTIMATED THAT THAT WOULD BRING IN $1.2 BILLION INTO THE STATE AT NO ADDITIONAL TAX COST TO THE PEOPLE OF MINNESOTA, BUT IT WOULD BRING THAT INTO EDUCATION, FOR SUPPLEMENTAL EDUCATION.

SO WHEN YOU'RE THINKING ABOUT TUTORING AND SOME OF THOSE EXTRA THINGS THAT COULD REALLY HELP OUR STUDENTS, IT'S A FEDERAL TAX CREDIT THAT NO MATTER WHAT, BECAUSE WE'VE OPTED OUT AS A STATE, GOVERNOR WALZ HAS DONE THIS, WE TRIED TO MOVE LEGISLATION FORWARD THIS LAST YEAR, COULDN'T GET IT OVER THE FINISH LINE WITH JUST THE TIE, DEMOCRATS ABSOLUTELY BLOCKED IT, BUT WHAT THAT WOULD DO IS BRING THOSE DOLLARS IN.

MINNESOTANS CAN STILL TAKE -- >> Cathy: THIS IS FOR TUTORING, IT WOULDN'T BE FOR PRIVATE SCHOOLS LIKE A VOUCHER SITUATION.

>> IT WOULD GO TO ANY SCHOOL THAT'S NEEDED.

NOW IT WOULD MOSTLY GO TO PUBLIC SCHOOLS BECAUSE 90% OF OUR KIDS GO TO PUBLIC SCHOOLS.

BUT IT COULD GO TO PUBLIC OR PRIVATE.

WHAT'S GOING TO HAPPEN, IF MINNESOTANS WANT TO TAKE ADVANTAGE OF A $1,700 FEDERAL TAX CREDIT, THEY CAN DO IT, BUT THOSE DOLLARS ARE GOING TO END UP IN OTHER STATES.

NEW YORK, COLORADO, OTHER EVEN DEMOCRAT-LED STATES THAT HAVE OPTED THEIR STATES INTO THIS.

SO DAY ONE, I'M GOING TO BRING IN EXTRA DOLLARS FOR EDUCATION TO START.

>> Cathy: IT DOES SOUND, THOUGH, IF I'M LISTENING TO YOU, THAT YOU WOULD PROBABLY -- IT SOUNDS LIKE YOU MIGHT HOLD THE LINE ON K-12 SPENDING IN TERMS OF, YOU KNOW, THE FORMULA, WOULD YOU PUT ANYTHING OWARD THE EDUCATION FORMULA?

WOULD YOU INCREASE THAT?

AGAIN, SCHOOLS ARE ALWAYS COMPLAINING THAT THEY'RE NOT FULLY FUNDED.

>> WELL, AND, AGAIN, WE HAD DEMOCRATS UNDER THE TRIFECTA THAT SAID THEY WERE GOING TO FULLY FUND EDUCATION.

NOBODY COULD DEFINE WHAT THAT MEANS.

WHAT I'M LOOKING FOR IS INVESTING MINNESOTA TAX DOLLARS INTO SCHOOLS TO MAKE SURE THAT OUR KIDS CAN READ AT GRADE LEVEL.

THAT THEY ARE PREPARED FOR THE FUTURE, THAT THEY ARE GOING TO BE ABLE TO DO MATH AND SCIENCE AT A GRADE LEVEL THAT IS ACCEPTABLE.

WE'VE SEEN A FAILURE.

SOME OF THOSE MANDATES THAT HAVE BEEN PUT ON ALL OF OUR BUSINESSES, WHEN YOU THINK OF PAID FAMILY LEAVE, EARNED SICK AND SAFE TIME, THOSE ARE HITTING OUR SCHOOLS.

AND, SO, WE'RE INVESTING MORE DOLLARS, WE'RE TAXING SCHOOLS BUT, YET, WE'RE PULLING EDUCATORS OUT OF THE CLASSROOM.

SO RETHINKING THAT, ALLOWING SCHOOLS TO POTENTIALLY OPT OUT OF THOSE THINGS RATHER THAN PUTTING THE BURDEN ON TAXPAYERS IS ONE OF THE THINGS THAT WE PROPOSED IN OUR EDUCATION PLAN.

>> Cathy: BY THE WAY, WOULD YOU ROLL BACK PAID FAMILY LEAVE?

>> I THINK WE NEED TO PUT SOME GUARDRAILS IN THERE.

RIGHT NOW WE KNOW THAT PLAN IS GOING TO BE OUT OF MONEY.

IT IS A .88% ON ALL EMPLOYERS AND EMPLOYEES, HOWEVER THEY CHOOSE, IF THEY SPLIT IT OR NOT, BUT IT IS A MANDATE THAT WAS PUT ON ALL BUSINESSES IN MINNESOTA.

EVEN IF YOU ONLY HAVE JUST ONE EMPLOYEE.

WE KNOW THAT IT POTENTIALLY IS RIPE FOR FRAUD AND ABUSE.

SO PUTTING GUARDRAILS AND MAKING IT A BETTER OPTION, WE HAD A LOT OF BUSINESSES, CATHY, THAT WERE ALREADY PROVIDING GREAT BENEFITS AND IT WAS A MANDATE PUT ON AGAIN BY DEMOCRATS WHEN THEY'RE IN CONTROL OF STATE GOVERNMENT.

>> Cathy: HENNEPIN COUNTY MEDICAL CENTER, AND THERE WERE SOME DISTRESSED RURAL R HOSPITALS NEEDING INFUSES -- INFUSIONS OF CASH.

IN A DEMUTH ADMINISTRATION, WHAT WOULD YOU DO TO TRY TO SHORE UP SOME OF THE HOSPITALS THAT ARE INSTRUMENTALLING?

>> SOME OF THE THINGS WE DID THIS LAST SESSION, WE PUT IN ADDITIONAL DOLLARS, WE INCREASED REIMBURSEMENT RATES AND WE DID PUT ON A LITTLE BIT OF A BAND-AID OR HELP FOR OUR HOSPITALS.

HEALTHCARE ACCESS ACROSS THE STATE MATTERS VERY MUCH, WE HAVE HIGH HEALTHCARE COSTS BECAUSE OF OBAMACARE AND OTHER MANDATES THAT HAVE BEEN PUT ON.

[ STRUGGLING ] NOW, MY OPPONENT WAS THE DECIDING VOTE FOR OBAMACARE, REALLY PROMISED TO PROTECT THE COUNTRY N COUNTRY IN HER VOTES WHEN SHE RAN FOR OFFICE ORIGINALLY TO BRING DOWN HEALTHCARE FRAUD.

WE'RE NUMBER ONE FOR HEALTHCARE FRAUD IN THE TATE OF MINNESOTA RIGHT NOW.

UNDER A DEMUTH WILSON ADMINISTRATION, WE'RE LOOKING AT REDUCING MANDATES, MAKING SURE THAT HEALTHCARE IS ACROSS THE STATE IS ACCESSIBLE TO MINNESOTANS BUT WE'VE GOT TO BRING DOWN THE COST.

AND WE HAVE TO END FRAUD, FRAUD ACROSS THE STATE HAS DRIVEN THE COST OF EVERYTHING UP.

BUT TO BE LISTED AS NUMBER ONE IN HEALTHCARE FRAUD IN THE NATION IS TERRIBLE PLACE FOR MINNESOTA TO BE.

>> Cathy: WILL YOU TRY TO CLAW BACK SOME OF THE MONEY THAT HAS BEEN LOST DUE TO FRAUD?

>> WE WOULD LOVE TO CLAW THAT BACK.

BUT WE DON'T KNOW IF IT'S POSSIBLE RIGHT NOW.

BUT GOING FORWARD, DEMUTH/WILSON ADMINISTRATION IS OING TO MAKE FRAUD THE CRIMINAL PART OF WHAT IT IS.

I'M TASKING MY LIEUTENANT GOVERNOR, RYAN WILSON, WITH BEING IN CHARGE OF A FRAUD PREVENTION COMMISSION THAT HE WILL DO, KIND OF LIKE I DID IN THE HOUSE OF REPRESENTATIVES, WITH THE FRAUD PREVENTION COMMITTEE THAT WE HAD.

THE BEST WAY WE CAN PROTECT TAXPAYER DOLLARS IS TO BE ABLE TO PREVENT FRAUD FROM EVER STARTING.

UNDER MY ADMINISTRATION, IF YOU COMMIT FRAUD IN THE STATE OF MINNESOTA, AND YOU ARE CAUGHT AND CONVICTED, YOU WILL FOE TO JAIL AND WE WILL SEIZE THOSE ASSETS.

I HAVEN'T HEARD ANYTHING SIMILAR -- IT'S INTERESTING ON FRAUD.

WHEN YOU THINK BACK TO OVER FOUR YEARS, ALL OF THE PRESS RELEESDZ THAT SENATOR AIM -- RELEASES THAT SENATOR AMY KLOBUCHAR PUT OUT ABOUT MANY MANY DIFFERENT THINGS, TAYLOR SWIFT TICKETS, MANY THINGS, SHE NEVER ONCE MENTIONED FRAUD UNTIL GOVERNOR WALZ CHOSE HER TO RUN FOR GOVERNOR AND THEN SHE SAID FRAUD IS BAD AND NOW SHE'S GOING TO DO TOP TO BOTTOM AUDIT.

SHE COULD HAVE DONE MUCH MORE.

SHE COULD HAVE HELD JUDICIAL HEARINGS, SHE COULD HAVE SHOWN UP, SHE COULD HAVE PROTECTED OUR STATE FROM FRAUD AND SHE CHOSE NOT TO.

I WOULD LOVE TO BE ABLE TO ASK HER WHY NOT.

>> Cathy: I WILL ASK YOU ABOUT AN AD THAT IS RUNNING THAT HARPER MOYSKI'S PARENTS ARE DOING AN AD FOR AMY KLOBUCHAR.

THEY ARE PARENTS, OF COURSE, HARPER WAS ONE OF THE CHILDREN KILLED AT ANNUNCIATION.

AND THEY PRETTY MUCH HAVE SAID THAT YOU -- YOU LIED BECAUSE THEY SAY THAT YOU PROMISED TO BRING A GUN CONTROL BILL UP FOR A VOTE IN THE HOUSE.

WHAT WOULD YOU HAVE DONE DIFFERENTLY IN THAT SITUATION WITH THOSE PARENTS?

>> THE LOSS OF LIFE AND KIDS AND THE TRAGEDY THAT THE ANNUNCIATION COMMUNITY HAS EXPERIENCED IS HORRIFIC.

AND I AM THE FIRST ONE TO SAY THAT.

OUR FAMILY EXPERIENCED A SIMILAR THING AT ROCORI, MY COMMUNITY DID.

AND WHAT I WOULD SAY IS, WHEN I HAD THE OPPORTUNITY TO MEET WITH HARPER'S PARENTS AND THEN OTHER FAMILIES LATER ON FROM ANNUNCIATION, I COMMITTED THAT BILLS WOULD BE INTRODUCED, REFERRED TO COMMITTEE, HEARD IN COMMITTEE, AND THEN VOTED ON.

THAT HAPPENED FIVE TIMES, STARTING IN FEBRUARY.

THE BILLS WERE HEARD, VOTED ON, WHICH IS WHAT I COMMITTED, AND -- >> Cathy: VOTED ON IN COMMITTEE OR ON THE LOOR?

>> IT HAPPENED BOTH WAYS, CATHY.

FIVE TIMES IN COMMITTEE, THREE TIMES IN ON THE THOUSANDS FLOOR.

WE THROUGH ANONYMOUS REPORTING.

GOVERNOR WALZ, WHEN ASKED BY THE CATHOLIC CONFERENCE IN 2024 TO ALLOW TAXPAYER DOLLARS FOR SCHOOL SAFETY IN SCHOOLS TO ALSO BE AVAILABLE TO PRIVATE SCHOOLS, DEMOCRATS IN THE STATE OF MINNESOTA SAID ABSOLUTELY NOT.

SENATOR KLOBUCHAR COULD HAVE HAD THOSE SAME DOLLARS, SHE COULD HAVE BEEN PRESSED THAT UPON GOVERNOR WALZ WHO IS IS HE HAS SAID IS AN INCREDIBLE GOVERNOR WHO HAS DELIVERED FOR THE PEOPLE OF MINNESOTA.

WHEN HE BLOCKED THAT, SHE COULD HAVE STEPPED IN TO MAKE SURE THAT WE WOULD MAKE THAT AVAILABLE FOR ALL MINNESOTA STUDENTS INSTEAD OF JUST PUBLIC SCHOOL STUDENTS.

>> Cathy: YOU KNOW, I'VE COVERED YOU FOR A WHILE, AND YOU'RE KIND OF A PRIVATE PUBLIC PERSON IN A SENSE.

>> YEAH.

>> Cathy: LET ME ASK YOU A QUESTION ABOUT RELIGION.

AND I ASK YOU THIS BECAUSE YOU ARE A MEMBER OF A PENTACOSTAL DENOMINATION, ASSEMBLY OF GOD.

HOW DOES YOUR FAITH AMPLIFY OR UNDERSCORE YOUR LEADERSHIP?

>> I WAS RAISED GOING TO CHURCH, GOING TO CHURCH AND TO SUNDAY SCHOOL, BASIC VALUES THAT ARE FOUND IN THE BIBLE, AND THAT IS A STRONG PART OF WHO I AM.

DEFINITELY NOT ASHAMED OF IT.

IT'S SOMETHING THAT IS THE CORE OF WHO I AM IN EVERY DECISION I MAKE.

SO IT'S NOT JUST SOMETHING I DO ON SUNDAYS.

>> Cathy: I WANTED TO ASK YOU A LITTLE BIT, JUST ANOTHER QUESTION ABOUT THIS, IN 2023, YOU TALKED AT A ASSEMBLY OF GOD CONFERENCE AND YOU SAID THERE'S DESPERATE NEED FOR GODLY LEADERSHIP.

WHAT DOES THAT MEAN?

>> WHEN YOU LOOK AT LEADERSHIP IN THE STATE OF MINNESOTA, THE FAILED WALZ ADMINISTRATION, AND PEOPLE WHO HAVE REALLY TAKEN OUR STATE AND DISRESPECTED THE TAXPAYERS OF MINNESOTA, WHEN I CHOSE TO RUN FOR GOVERNOR, PART OF THE REASON I DID THAT IS BECAUSE IT HAS GOTTEN TIE PLACE THAT UNDER DEMOCRAT CONTROL, SPECIFICALLY, WHEN YOU LOOK AT THAT, DECISIONS WERE ADE THAT DISRESPECTED THE TAXPAYERS, ALLOWED FRAUD TO GO UNCHECKED, ALLOWED CRIME TO GO FORWARD, AND I THINK WE NEED TO BRING THAT BACK.

WHAT I'M HEARING, WHEN I'M ACROSS THE STATE IS PEOPLE ARE JUST SAYING, WOULD YOU PLEASE HELP MY GOVERNMENT RESPECT THE WORK I DO?

ALLOW BUSINESSES SO I CAN ARN A LIVING.

HELP THOSE THAT NEED IT THE MOST, BUT DON'T ALLOW FRAUD AND THE WASTE TO GO FORWARD.

THAT IS NOT TO DO WITH A RELIGION.

THAT IS NOT EVEN TO DO WITH A PARTY.

CATHY, THAT IS COMMON SENSE.

THAT'S WHAT I HEAR ALL OVER THE STATE, INCLUDING THE BUS TOUR THAT I JUST STEPPED AWAY FROM SO I COULD COME IN AND MAKE SURE I WAS HERE IN FRONT OF YOUR AUDIENCE.

BUT THAT IS SOMETHING THAT WE HEAR.

THAT IS JUST COMMON SENSE.

WE CARE FOR PEOPLE THAT NEED HELP.

WE PROVIDE A SAFETY NET.

BUT WE SURE WANT PEOPLE TO BE INDEPENDENT IN WHAT THEY CAN DO.

>> Cathy: SPEAKER LISA DEMUTH, REPUBLICAN CANDIDATE FOR GOVERNOR, THANKS FOR BEING HERE ON "ALMANAC."

>> THANK YOU VERY MUCH.