Primary elections were held on September 11. Perpich defeated a challenge from Mike Hatch for the DFL nomination. The Independent-Republicans initially nominated businessman Jon Grunseth over Carlson, but Grunseth withdrew in late October following a series of allegations of sexual misconduct against children and extramarital affairs. Carlson, who had launched a write-in campaign against both Perpich and Grunseth, was named the replacement nominee by default as the runner-up in the primary.
Carlson won the election by winning the heavily populated Ramsey and Hennepin counties. However, the race was kept close by Perpich's domination of the counties in Northern Minnesota, allowing for a margin of defeat of only 3.35%. As of 2024, this is the last time that an incumbent Governor of Minnesota lost re-election. This election was the first Minnesota gubernatorial election since 1962 that the winner of the gubernatorial election was of the same party as the incumbent president.
DFL primary
Candidates
Mike Hatch, former commissioner of Securities and Real Estate (1983–89) and DFL chairman
On October 14, with just over three weeks before the election, two women made public allegations of sexual misconduct against Grunseth. The women alleged that, in 1981, when they were 12 and 13 years old and friends of Grunseth's stepdaughter, Grunseth had requested they swim nude during an Independence Day party at his home and, when they refused, he attempted to forcibly remove their swimsuits. Two other women corroborated their allegations, and nine other attendees submitted sworn affidavits stating that they had witnessed nude swimming at the party.[6][7][8] Grunseth and his stepdaughter denied the allegations.[9]
In response to the allegations, Arne Carlson re-entered the race as a write-in candidate on October 22, backed by U.S. Senator Rudy Boschwitz, who was running for re-election and had suffered in the polls since the Grunseth scandal began.[10] On October 26, Perpich, Grunseth, and Carlson participated in a three-way debate on Twin Cities Public Television. Polls at the time suggested that Perpich would easily win the three-way race but lose to Carlson if Grunseth dropped out.[10]
On October 28, the Minneapolis Star-Tribune publishes new allegations that Tamara Jacobsen Taylor came forward claiming that she had engaged in sexual relations with Grunseth during his professional visits to the nation's capital as a lobbyist for Ecolab as recently as July 1989; though Grunseth admitted to the affair, he claimed it had ended in the early 1980s.[11] Grunseth dropped out of the race the same day, just over a week before election day, facing certain defeat and claiming the pressure was "more than [he] could bear".[12][10] However, Grunseth's withdrawal came after absentee ballots had been prepared, so he and Clark still went onto receive a number of votes.[13]
The Independent-Republicans held a special meeting on October 30, with some supporting 1986 nominee Cal Ludeman as a replacement over Carlson. However, the Independent-Republicans determined that they lacked the explicit power to choose a new candidate, and Carlson was automatically awarded the nomination by virtue of finishing second in the primary. He selected Joanell Dyrstad as his running mate.[14] Sharon Clark, who had been Grunseth's running mate, filed a lawsuit challenging her removal from the ticket. On November 1, 1990, the Minnesota Supreme Court ruled 5 to 2 against her, affirming Carlson and Dyrstad as the Republican candidates.[15]
^Short, Allen; McEnroe, Paul; Hage, Dave (October 29, 1990). "Taylor says Grunseth tried to deceive voters". Star Tribune. p. 11A.
^Ison, Chris (October 18, 1990). "Grunseth stands firm; IR leaders talk". Star Tribune. p. 1A.
^Short, Allen (October 15, 1990). "Allegations rock governor's race; 2 women claim improper behavior by Grunseth at '81 party; he denies it". Star Tribune. p. 1A.
^Short, Allen; McEnroe, Paul (October 28, 1990). "When did Grunseth 'wild years' end?". Star Tribune. p. 1A.