On November 7, the election was held and Musgrove won, taking 52 percent of the vote. He was sworn-in as lieutenant governor on January 4, 1996. In an attempt to contrast himself from his predecessor, he began his tenure by indicating he was open to cooperation with Governor Fordice. As lieutenant governor, Musgrove was an ex officio member of the Joint Legislative Budget Committee, chairing it in 1999. His service on the board allowed him to garner significant experience in budgeting.
