Spending in Utah's 2004 governor's race already has topped $1 million. And the real campaign hasn't even started yet.
Beyond the documented spending, at least one candidate has spent cash out of his own pocket to get his name before the public — and those totals won't be seen in either political action committee or, later, campaign finance disclosures. Monday's filing deadline was only for PACs, and some of the seven or so GOP candidates don't have PACs, only personal campaign committees, which won't have a public filing until May.
Scott Matheson Jr., the unofficial Democratic gubernatorial candidate, does not have a PAC and so had no filing Monday.
In any case, the clear money-spending leader is Fred Lampropoulos, a millionaire medical company founder and owner who seeks the Republican nomination this year.
Lampropoulos' PAC, Progress Utah, has raised $930,000 and spent $765,000 through late 2002 and all of 2003, new PAC reports show. But those reports don't reflect around $325,000 in Lampropoulos' personal spending on radio ads, said Dave Hansen, Lampropoulos' campaign manager.
The rest of the GOP field trails far behind in spending, although Jon Huntsman Jr., heir to the chemical company fortune, could put millions of dollars of his own into the GOP gubernatorial contest between now and Election Day.
You may have heard Lampropoulos on the radio over the past year. He's spent around $25,000 a month over the past 13 months on "think pieces" on KSL radio and other stations across the state.
Lampropoulos identifies himself in the ads but doesn't say he is running for governor. He gives his opinions on a variety of subjects, from the Boy Scouts to Ronald Reagan, ending the spots saying, "This is Fred Lampropoulos, and I just thought you'd like to know . . . ."
Lampropoulos has been paying for those spots personally "as a private citizen," said Hansen. "Basically, we didn't run (the radio ad expenses) through the PAC at the request of KSL and other stations."
To pay for radio spots out of a political action committee would clearly make Lampropoulos' spots political advertising, Hansen said.
"And the stations didn't want to take two-minute political ads" months, even a year, before the actual campaign, Hansen said.
"The reason Fred hasn't even announced yet, hasn't set up a campaign committee or a campaign fund is so he can keep on doing those (radio) ads. We're going to announce our campaign later this month, and then we'll have to stop the radio ads" for a while, Hansen said.
Add the $325,000 to the $930,664 raised by Lampropoulos' PAC, and he has raised nearly $1.25 million over the past 18 months or so. Nearly all of that cash has come from Lampropoulos himself, his immediate family or top executives of Merit Medical Systems Inc., his medical supply company, PAC reports show. Lampropoulos still has $165,732 in cash in his PAC, which could be transferred to his campaign committee when he finally forms one.
Other GOP gubernatorial campaigns mumbled about Lampropoulos' spending.
"I don't believe it. It's that much?" said Brad Probst, campaign manager for Huntsman.
"I have a very high regard for Fred," said Utah House Speaker Marty Stephens, who also is running for the GOP nomination. "But I could not, nor would I, spend that much" a year out from the election.
Stephens said between his speaker's PAC and his personal campaign account, he's raised just over $300,000 and spent "between $80,000 and $90,000 so far" in the governor's race.
Hansen said Lampropoulos decided on the early radio ads and other spending for several reasons.
"First, Fred is the great unknown in the race," he said. "He hasn't held public office before, nor for years, like some of the others."
Former U.S. Rep. Jim Hansen served in Congress for 22 years and has been on various Utah ballots for more than 30 years. Stephens, R-Farr West, has served in the Legislature for more than a decade and been speaker for six years.
"Yes, Fred is a successful businessman. But his Merit Medical does not sell to the general public, nor is well known. He's not run a business like a Smith's Food store or Geneva Steel," said Dave Hansen.
"Second, well, we had the resources (of Lampropoulos' personal wealth), so we could do" the radio ads and grass-roots GOP delegate wooing.
Dave Hansen said Lampropoulos has not said publicly how much he is worth. But Merit Medical is a $600 million firm traded on a major stock exchange. The firm makes any number of medical supplies, some of which were developed by Lampropoulos himself. Vice President Dick Chaney has a Merit Medical shunt in his heart, for example, Lampropoulos told the Deseret Morning News last spring.
Lampropoulos attended nearly all county GOP conventions last year, giving several thousand dollars to each county organization, his reports show. He hosted around 800 GOP delegates to the Tuacahn entertainment center outside of St. George, spending around $10,000 on those three events alone. He's polled both state delegates and GOP caucus-goers. And he's hired four or five consultants, including Jim Bennett, U.S. Sen. Bob Bennett's son, to write his radio spots. He even paid Zions Bank economist Jeff Thredgold $4,000 for an economic outlook briefing and spent $6,500 for gift bags to women attending the national Republican women's conference in Salt Lake last fall.
While Huntsman doesn't have to file a campaign finance report until a week before the May state GOP convention, Jason Chaffetz, campaign spokesman, said Huntsman has raised $479,929 and spent $133,916 as of Dec. 31. All but $30,000 has come outside of the Huntsman family, he added. Huntsman gave his PAC $20,000 late last year and has now folded that PAC and started a campaign account. Huntsman has given the campaign fund only $300 so far, adds Chaffetz.
The largest contribution overall is $25,000 from Huntsman's younger brother, Peter, president and CEO of Huntsman LLC, the main holding company for the Huntsman chemical firms. Jon Huntsman Sr., father of Jon Jr. and Peter, has an estimated worth of $2.7 billion, according to Forbes magazine.
"There are significant family resources" that could be put into the campaign ahead, said Chaffetz. "But we are running a grass-roots campaign — in fund-raising and in gaining other support. But we believe it will take $4 million to $5 million to win this seat from the Democrats; and (Huntsman) is committed to raise that much," Chaffetz added.
Stephens said he's looking to raise around $3 million through Election Day.
Democrat Matheson said Monday he's has about $275,000 in cash on hand and has spent less than $10,000. He declined to say how much he hoped to raise but expects the GOP nominee will probably outspend him. "We won't look to spend the most money, just get the most votes."
Republican Nolan Karras said he's raised nearly $300,000, putting $100,000 into his campaign himself.
What about Lampropoulos' spending $325,000 on radio ads outside of his PAC? What about not having to file a personal campaign report until the week before the May GOP state convention, a year from when some candidates started raising and spending money on the governor's race?
"I personally would like to see more disclosure," said Stephens, who in two weeks starts his last Legislature as speaker. "Almost all of us file online with the state Elections Office, and I don't see why we couldn't update our contribution and spending lists (with the state) when we post the checks. As for Fred's radio ads, well, the law says if you spend money to get a nomination, you report it. It's up to Fred to determine" if the radio ads are in fact tied to his seeking the nomination, said Stephens.
E-MAIL: bbjr@desnews.com