Billionaire Steyer’s spending binge dwarfs rival campaigns in California governor’s race

LOS ANGELES — In the open race for California governor, billionaire Tom Steyer is on a spending spree.

The hedge fund manager turned liberal activist uses his personal fortune to saturate television screens and cellphones with advertising, while his competitors accuse him of trying to use his immense wealth to buy the most powerful office in state.

Steyer’s ads — in which he promises to cut household costs or denounce federal raids on immigration — sometimes seem inescapable in heavily Democratic Los Angeles, the state’s largest media market. Data compiled by ad tracker AdImpact shows that Steyer has spent or reserved more than $115 million on television, cable and radio ads, nearly 30 times the amount of his closest Democratic rival.

If he manages to advance to the June 2 primary election, Steyer could easily eclipse the 2010 record set by Republican Meg Whitman, who spent $178.5 million in a losing bid for governor, much of it her own money. At the time, it was the most expensive campaign for statewide office in the nation’s history.

Even combining ad buys from all of its major competitors, as well as ad buys by independent committees supporting candidates, Steyer spends tens of millions of dollars more than the industry.

“Billionaire money is flooding our state in an effort to buy this election,” former U.S. Rep. Katie Porter, one of Steyer’s main rivals, warned supporters this month.

Mail-in ballots are expected to be sent to voters next month. Steyer is among a host of candidates hoping to gain attention after former Democratic U.S. Rep. Eric Swalwell’s dramatic exit from the race following sexual assault allegations he denies.

But even as Steyer has risen in the polls amid his spending spree, he hasn’t broken away from the field, leaving some to wonder if he’s getting his money’s worth.

“If your first round of ads doesn’t move you dramatically (in the polls), the third, fourth, fifth, six, seventh and eighth rounds won’t either,” said veteran Democratic strategist Bill Carrick, who for years advised the late Democratic U.S. Sen. Dianne Feinstein. “There’s something that intrinsically holds Steyer back.”

In recent previous campaigns for governor, at this point, a leading candidate took control of the race. This year, voters appear to be shrugging their shoulders at an election that lacks a star candidate among seven leading Democrats and two Republicans.

“One way or another the countryside is frozen,” Carrick added.

History shows that money doesn’t always translate into votes.

Billionaire developer Rick Caruso spent more than $100 million in 2022 to become mayor of Los Angeles, much of it his own money, but he was easily defeated by Mayor Karen Bass, who spent a fraction of Caruso’s total. Billionaire former New York City mayor Michael Bloomberg spent more than $1 billion of his own money on his 2020 presidential bid before dropping out. And Steyer’s money couldn’t put him in the 2020 presidential race, when he dropped out earlier this year after a poor showing in the South Carolina primary.

Steyer has never held elected office.

In a 2019 interview with The Associated Press, Steyer was asked what he would say to people who think he is trying to buy the presidency.

“I don’t think it’s possible,” Steyer said at the time, before adding: “I will never apologize for being successful in business. This is America, isn’t it?”

His campaign did not respond directly when asked about similar criticism of his gubernatorial bid.

“Tom is now the only Democrat with the grassroots energy, institutional support and resources to advance to the general election,” spokesman Kevin Liao said in a statement.

The gubernatorial race was recently reshuffled by two events: Swalwell, a prominent Democrat, abruptly withdrew from the race and then resigned from Congress, following sexual assault allegations. Meanwhile, President Donald Trump has endorsed conservative commentator Steve Hilton.

Yet there is no clear leader.

A poll conducted in late March and early April by the nonpartisan Public Policy Institute of California found a group of candidates in close competition: Democrats Steyer and Porter, Republicans Hilton and Chad Bianco, and Swalwell. Other candidates lagged behind. The poll was conducted before Swalwell’s withdrawal.

Democrats fear the party’s large number of candidates could lead to them being shut out of the November general election. This is because California has a primary system in which only the top two vote-getters advance to the general election, regardless of party.

Top Democrats all say they have gained support since Swalwell left office. Steyer landed a plum endorsement, when the influential California Teachers Association, which previously supported Swalwell, recommended him.

In his ads, Steyer promises to “abolish” U.S. Immigration and Customs Enforcement, which conducts raids across California. In another, he deplores the exorbitant cost of housing imposed by the State: “Everyone needs affordable housing to live,” he says.