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Newsmakers: Ex-Gov. Carlson Says MN Headed Toward ‘Serious Financial Crisis’

2:35 PM | Friday, September 25, 2026

Arne Carlson, Minnesota’s governor from 1991-1999, stopped by the Golden Valley Rotary Club on Tuesday to talk Minnesota state politics — past, present and future.

Carlson was Minnesota’s 37th governor after serving 12 years as state auditor. He’s considered a “liberal Republican,” and has often endorsed Democratic candidates since his retirement.

Now 92 — he celebrated his birthday on Thursday — Carlson said in retirement he has decided to focus on his passion of solving problems and bringing people together.

“We have to reacquaint ourselves with what the role of government is. Government is about building partnerships, not tearing ourselves apart. Not all this political rhetoric of hatred. But building relationships, and start to define: what is your agenda?” Carlson said.

For much of his speech, Carlson talked about the importance of lawmakers understanding the budget.

“Here in Minnesota, we don’t have a 5-year plan and we frankly should.”

He also shared worries about the state’s reliance on federal government funding.

“That affects local government, local schools, as well as the state. And the federal government, because of interest costs, is squeezing the monies that go to states and local governments. So we have to be innovative in Minnesota, we have to build partnerships at a local level,” Carlson said. “We’re going to have to rethink the whole issue of affordability, because right now, we’re headed for a serious financial crisis in Minnesota. I would say in two to two-and-a half years.”

room full of people watching arne carlosn former gov. speak

Carlson spoke to Golden Valley and St. Louis Park Rotarians, as well as other special guests.

When he spoke to the group, he said he wants big money out of politics and a more level playing field for candidates. He also called for more unity and collaboration in the state legislature and executive branch.

CCX News asked him why he felt it was important to talk about these topics to this day. In response, he brought up the 25th governor of Minnesota, Harold Stassen. 

“People always teased Harold Stassen because he was always running for public office,” Carlson said. “I had lunch with him one time, and I asked him that question. And he said: ‘You know, people retire and they go to Arizona and they play golf. And everyone says that’s wonderful. They retire, and they go down to Florida and that’s wonderful. I love government, I love politics and that’s what I’m going to do.’ And I’m kind of in the same boat. I love public policy, I truly do.

“And I’ve been, obviously, a great benefactor of it. And I want to make sure that whatever I can do to contribute to the thought process, and prayerfully, an improvement or two, that would be good.”

He said he encourages young people to run for office, because he says they think further into the future. That’s because they have more life ahead of them.

Carlson lives in Hopkins now.

Sponsored
Emily Haugen, reporting

Brooklyn Center | Brooklyn Park | Crystal | Golden Valley | Maple Grove | New Hope | Osseo | Plymouth | Robbinsdale | Twin Cities

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