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He was elected to the Public Service Commission in 1978 and ran unsuccessfully for the United States Senate against Jeremiah Denton in 1980. He was elected Lieutenant Governor in 1986 and re-elected in 1990. On April 22, 1993, he was sworn in as governor of Alabama following Governor Hunt's removal from office due to an indictment for state ethics law violations. Governor Folsom lost his bid for election to the governor's position in November 1994 to Fob James.
Folsom is married to Marsha Guthrie. They have two children.