In the six-way race to be California’s treasurer, it likely comes down to two Democrats

Selling bonds. Awarding tax credits. Overseeing pension funds. Investing idle cash for maximum return.

These are the roles of California’s treasurer, a job that evokes someone with a fondness for green eyeshades and a favorite Excel function.

But in California — as in most other states — it’s a job that goes to a politician.

That may leave voters wondering: What’s the best combination of skills, experience and values for such an exceedingly wonky job?

Ask the six candidates and you’re liable to get six different answers.

California’s next money manager should be a detail-oriented former diplomat, according to Lt. Gov. Eleni Kounalakis.

For State Sen. Anna Caballero, Kounalakis’ chief Democratic rival, the better option is a wily elected official from a working class community with experience running a government bureaucracy.

The two Republicans, Jennifer Hawks and David Serpa, both believe it should be someone eager to check the fiscal impulses of California’s overwhelmingly Democratic political establishment.

Board of Equalization member Tony Vazquez thinks a long-time elected tax commissioner is a good fit. Glenn Turner, a former crystal and Tarot card seller-turned mental health activist, believes the role calls for someone with a radical political vision.

Not even turn-of-the-century Gov. Hiram Johnson, one of modern California’s political founding fathers, knew what makes a good state treasurer. The job, he complained to the Legislature in 1911, is “merely clerical” and its “qualifications naturally can not be well understood.”

The June 2 race is largely a rivalry between the top Democrats.

Kounalakis vs Caballero

There isn’t much reliable public polling, but as measured by name recognition, high-caliber endorsements and campaign cash on hand, this is Kounalakis’ race to lose.

That’s in part thanks to her current role as lieutenant governor — a job that commands statewide name ID and governing experience, even if its list of responsibilities is relatively short.

Kounalakis’ personal fortune has also surely helped her become a top candidate. The daughter of developer Angelo Tsakopolous, founder of Sacramento-based AKT Development Corporation, she has nearly nine times as much money parked in her campaign account as the other five candidates combined.

Kounalakis entered Democratic politics as a major donor, helping her secure an ambassadorship to Hungary under President Barack Obama. Those fundraising connections also have paid off this cycle: She is endorsed by former first lady Hillary Clinton, former U.S. Speaker Nancy Pelosi and Gov. Gavin Newsom.

From left, state Sen. Anna Caballero and Lt. Gov. Eleni Kounalakis.

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Fred Greaves and Miguel Gutierrez Jr.

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CalMatters

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Kounalakis wouldn’t be the first to take this path to the treasurer’s office. Phil Angeledes, who served from 1999 to 2007, is also an AKT alum whose political career was partially funded by Tsakopolous.

Though Kounalakis initially ran to replace Newsom as governor, she switched to the lower-profile treasurer’s race last summer amid flagging prospects in a crowded field. But Kounalakis, whose campaign did not respond to requests for an interview, has since argued that her experience as a developer and her self-professed technical orientation make the role of treasurer a better fit. She told the San Francisco Chronicle that she craved a technical role after so many years as a diplomat “standing in front of a podium with a visiting dignitary.”

Kounalakis’ decision was an unwelcome development for state Sen. Anna Caballero. A longtime state legislator who served as Business, Consumer Services and Housing Agency secretary under former Gov. Jerry Brown, the Merced Democrat was the presumptive favorite until then. Caballero has the upper hand by at least one metric: She has raised more money than Kounalakis since the beginning of this year, even if her campaign account is dwarfed by the war chest the lieutenant governor has amassed over the years.

Both Kounalakis and Caballero are termed out of their current roles.

The competition between the two top Democratic hopefuls is fierce, even if they don’t seem to disagree about much.

Both want the state to simplify the application process for affordable housing subsidies — which is already in the works with the governor’s new housing agency. Both support recent treasurer’s initiatives to direct state funds toward renewable energy projects and to administer a retirement savings program for workers whose employers don’t offer pension or 401k accounts. Both expressed enthusiasm about a proposal to require state banks and other financial institutions to lend more in lower income neighborhoods and communities.

Where there is daylight between the two, it is more a matter of emphasis than major disagreement. Caballero, for example, avidly promotes the use of hydrogen and dairy gas as gasoline alternatives and said the treasurer could foster private-public partnerships in those industries. As a member of the State Lands Commission, Kounalakis is an avid advocate for off-shore wind power development.

Who will make the top two?

Though Kounalakis and Caballero are the two most formidable candidates, it’s far from certain that both will make it to the November ballot. One of the top two spots could easily go to a Republican under California’s system in which the top two vote-getters advance.

California’s Republican establishment has been doing everything possible to make that happen. The California Republican Party formally endorsed Jennifer Hawks, a Bay Area party activist and former private school administrator, over fellow Republican David Serpa. Reform California, the conservative fundraising and get-out-the-vote organization run by Republican Assemblymember Carl DeMaio, also endorsed her.

“There’s a risk of splitting the vote,” DeMaio noted in a live-streamed conversation with Hawks. “We need to make sure that we have someone in the general election that we can be proud of.”

What does the treasurer do?

The day-to-day work is mostly done by professional staff and it doesn’t vary much with changes at the top. That doesn’t afford their elected boss much room for creativity or innovation. Bill Lockyer, the state’s treasurer between 2007 and 2015, said the job’s main role is to ensure that work is done with Californians in mind — that the “professional staff is managing responsibly.”

Still, there are occasional opportunities to do more with the job. Lockyer pointed to his decision to invest in international renewable energy projects through the World Bank — a first for the state — as one of his most important achievements. When Angeledes held the office, he used the treasurer’s posts on the boards of the state’s two major public employee pension funds to inveigh against investment banks and to champion the rights of shareholders. Other Democratic treasurers have acted as fiscal foils to Republican governors.

Since the days of Hiram Johnson, the post has also occasionally been derided as a sinecure for career politicians awaiting their next move.

That, said Caballero, is decidedly not why she wants to be treasurer. Pointing to her work on housing policy and rural economic development, she said everything in her legislative career “relates back to what’s in the treasurer’s office.”

Adding a not-so-subtle dig at Kounalakis: “I’m not on a stepping stone up to something else.”

Not that the treasurer’s office has been a particularly effective stepping stone: Angeledes, Kathleen Brown, and, more recently, John Chiang all attempted post-treasurer’s office runs for governor. None succeeded.

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.