Billionaire Tom Steyer’s ad spending breaks records in California governor’s race

By MICHAEL R. BLOOD

LOS ANGELES (AP) — Regardless of the outcome, billionaire Democrat Tom Steyer will certainly make his mark in history with his campaign to become California’s next governor — he’s leading the nation in political advertising expenses this year.

Steyer — a former hedge fund manager turned activist — has invested or reserved over $195 million for ads across broadcast TV, cable, and radio, according to data from advertising tracker AdImpact, with expenditures continuing to rise.

This onslaught of advertising has opened him up to criticisms suggesting he is trying to purchase the governorship, as his spending greatly exceeds that of his closest competitor, fellow Democrat Xavier Becerra, who is also vying for a spot in the November election.

On a national scale, his financial commitment is unmatched — no other candidate is even close.

In Georgia, Republican healthcare executive Rick Jackson has dedicated about $83 million to advertising in his primary race for governor, placing him second. His Republican opponent, Lt. Gov. Burt Jones, who has President Donald Trump’s endorsement, follows closely with nearly $31 million spent on ads, according to AdImpact.

Trailing Jones is Democratic U.S. Rep. Raja Krishnamoorthi of Illinois, who allocated over $28 million on advertising in an unsuccessful U.S. Senate campaign.

Is he really ‘buying the governor’s office?’

Katie Porter, a former U.S. House member among the seven notable Democrats in the California race, has continually criticized Steyer for utilizing his vast fortune to dominate the advertising landscape with minimal opposition from rivals.

“He’s not gaining support — he’s purchasing this position,” her campaign stated in an email to supporters on Wednesday.

In sheer numbers, Steyer’s advertising campaign has surpassed the previous record set by Republican Meg Whitman, who spent $178.5 million on a failed gubernatorial run in 2010, largely using her own funds. While adjusted for inflation, Whitman still retains the state record, reflecting overall election spending rather than just the primary.

A crowded race with no distinct frontrunner

Steyer’s record-breaking spending has propelled him into contention in the jam-packed race, but he hasn’t distanced himself significantly from competitors. He is part of a leading group of candidates — including Becerra and Republican Steve Hilton — as the campaign approaches the June 2 primary. Mail-in voting commenced earlier this month.

Nonetheless, Steyer’s financial advantage is granting him an upper hand in publicity as the contest enters its pivotal final days. He’s maintained a consistent stream of advertising and online content questioning Becerra’s qualifications and track record, as Becerra, a former state attorney general and Biden administration health secretary, lacks the funds to counter effectively.

One Becerra advertisement sought to resonate with voters potentially overwhelmed by the influx of Steyer commercials. It showcased tranquil visuals of Joshua trees, beach waves, and towering redwoods, gently suggesting: “You can put an end to the endless Tom Steyer ads. Vote Xavier Becerra.”

Steyer’s financial power has enabled him to extend his campaign’s reach well beyond conventional TV and radio ads, including consistent postings on online platforms like YouTube and Instagram. The New York Times reported that his campaign engaged a progressive influencer from Texas for $100,000 to enhance Steyer’s electoral chances. The Sacramento Bee also noted that Becerra had enlisted an influencer as well.

In a statement, Steyer’s spokesperson Kevin Liao didn’t directly discuss the campaign’s spending but referred to millions of dollars invested in ads by independent groups supported by Pacific Gas and Electric Co., real estate professionals, and others aiming to undermine the billionaire, who has vowed to “dismantle California’s electric monopolies.”

While addressing reporters on Wednesday in Berkeley, Steyer justified his expenditures in the race, asserting he is combating powerful corporate forces raising living costs in the state.

“The corporations and billionaires have allocated unprecedented funds against me,” Steyer mentioned. “I’m solely advocating for the interests of Californians.”

Many voters have shown a reluctance to engage in a race lacking a standout candidate and clear leader. Over 50 names will appear on the ballot. California employs a “top two” primary system, where all candidates are listed on a single ballot, allowing only the top two vote-getters to move forward to November, irrespective of their political affiliation.

“In such a closely contested race, every aspect is crucial,” commented Democratic consultant Andrew Acosta.

Money doesn’t guarantee success

Historical trends indicate that financial influence does not always equate to electoral success.

Billionaire developer Rick Caruso invested over $100 million in 2022 for his Los Angeles mayoral campaign, primarily from his own resources, yet he faced a decisive defeat by Mayor Karen Bass, who spent a mere fraction of his total. Billionaire former New York City Mayor Michael Bloomberg allocated over $1 billion of his personal capital for his 2020 presidential campaign before withdrawing. Moreover, Steyer’s financial support failed to elevate him into competition during the 2020 presidential race, leading to his early exit following a weak showing in the South Carolina primary.

Even Democratic San Jose Mayor Matt Mahan received support for his gubernatorial campaign from independent committees funded by millions from tech entrepreneurs and venture capitalists, yet he failed to make significant progress in the electoral race.

Steyer has never held an elected position.