While California’s finances are in the red, Gov. Gavin Newsom plans to spend $19 million to polish the Golden State’s image.
Newsom’s office said the governor’s move is rooted in disproving “misinformation and political rhetoric” about his home state as he prepares to leave office, the Sacramento Bee posted.
In February, the Governor’s Office of Business and Economic Development began seeking a contractor to create a state-funded ad campaign.
The campaign’s purpose is to highlight California’s economic dominance and innovative spirit,” while showcasing its “vibrant, diverse business community,” and reminding people that “California is a world-class place for business investment, relocation, and expansion.”
Up to $14 million in ad campaign dollars would go toward paid media, including traditional ads such as TV commercials and digital ads on social media and other online platforms.
The campaign contract is expected to be awarded by March 31, with the contract extending from April 6 to Dec. 31, 2026.
The state’s ad campaign would begin during a period of financial uncertainty, with Newsom’s January budget projecting a $3-billion deficit for the next fiscal year, the Los Angeles Times reported.
What will the California ad campaign do?
Newsom spokesperson Tara Gallegos claimed that “California and its business climate have been falsely and maliciously maligned for years, and the state has a right to tell the true story — California is a great place to live, work, invest and visit.”
Gallegos touted California as:
Leading the country in Fortune 500 companies and new business starts.
Drawing more visitors than any other state.
Leading the world in innovation and imagination.
“Setting the record straight will benefit every business, worker, and resident of this state,” Gallegos stated.
The Los Angeles Times first reported the state contract, which opened for bidding on February 24 and closes on March 13, the Sacramento Bee stated.
Is Newsom making a run for president?
Many of Newsom’s opponents fired back at his campaign, claiming that the governor is using taxpayers’ dollars to polish his image before exiting office in January 2027 and making a run for president in 2028.
Last year, Newsom told CBS News that he planned to announce his decision to run for president in 2028, but only after the 2026 midterm elections were over.
Newsom began serving as governor in January 2019 and was reelected in 2022. He also survived a recall election in 2021.
He also served as lieutenant governor from 2011 to 2019, and mayor of San Francisco from 2004 to 2011.
Newsom’s opponents strike back
Newsom’s foes believe that his attention and taxpayers’ dollars should be focused on battling homelessness, high taxes, and crime, and on trying to keep companies from leaving California.
Assemblywoman Kate Sanchez stated that “If California were actually thriving, he (Newsom) wouldn’t need $19 million of your taxpayer money to convince people.”
She added that Newsom wants to spend millions of taxpayers’ dollars to improve the state’s image, “While families are paying over $5 for gas. While rent is crushing the middle class. While businesses are leaving the state.”
“Let’s be honest about what this is,” said Republican Assemblyman Tom Lackey, who claimed Newsom’s taxpayer-funded public relations move is to “polish” the governor’s brand.
“No marketing campaign is going to convince Americans he’s White House material,” said Lackey, who serves District 34.
A look at some of California economic stats
CalMatters reported that California has the largest homeless population in the U.S., with an estimated 187,000 people experiencing homelessness in 2025, representing about 24% of the nation’s total homeless population.
Retail prices for regular grade gasoline in California are consistently higher than in any other state in the continental United States, often exceeding the national average by more than a dollar per gallon, the U.S. Energy Information Administration reported.
The number of companies exiting California is small, according to a 2025 report from the Public Policy Institute of California, which found that only 3% of firms have moved to another state. However, larger companies are more likely to leave than smaller ones, according to Business Insider.
Outside of businesses, people, too, have been leaving California at a high rate, according to U.S. Census data showing nearly 700,000 people left the state between 2022 and 2023, Business Insider reported.
The Public Policy Institute of California reported that most people who move across state lines cited employment, housing, or family as the primary reason.
Since 2015, California has experienced net losses of almost 900,000 people who cite housing as the primary reason, a sharp increase from 2004–14, according to the Current Population Survey.
The Public Policy Institute of California Statewide Survey found that 34% of Californians have seriously considered leaving the state because of high housing costs.
The survey also revealed that 21% have considered leaving due to a lack of well-paying jobs.
Political outlook might also play a role for some movers, as conservatives are more likely to contemplate leaving the state than liberals, and Republicans are much more likely to leave than Democrats, the survey showed.
About half of those who leave the state buy a house in their new state, whereas only one-third of those moving to California do so.
This article originally appeared on Palm Springs Desert Sun: Gov. Newsom to spend $19 million on California image