Labor leader Dave Regan has been dubbed California's "biggest election loser" after spending approximately $47 million on two ballot measures that were overwhelmingly defeated by voters. Regan, president of SEIU-United Healthcare Workers West, led an extensive campaign that ultimately failed to pass a one-time tax on the state's billionaires and a measure impacting community health clinics.
Proposition 40, the controversial wealth tax, was rejected by nearly 56% of voters. The measure aimed to tax the state's wealthiest individuals to fund healthcare services. Regan's union and its political action arm reportedly spent $37.3 million on this initiative through mid-October. An additional $11.1 million was spent on Proposition 44, which sought to mandate that community health clinics allocate 90% of their revenues to program services. This proposition was defeated by approximately 82% of voters.
Critics, including a California Democratic strategist, estimate that Regan's union has spent over $100 million of members' dues on unsuccessful ballot fights over the years. Billionaires countered the proposed taxes with significant spending of their own. Google co-founder Sergey Brin alone contributed more than $100 million to campaigns opposing the measures. Auto loan titan Don Hankey, who previously voiced concerns about the tax, expressed pleasure at its defeat.
Beyond the election losses, Regan has also faced accusations of threatening female colleagues and assaulting a former labor executive, allegations he denies. A law firm's investigation reportedly corroborated some of the threats but did not substantiate his counterclaims.
Despite the electoral setbacks and ongoing internal union scrutiny, Regan's supporters maintain that a "political reckoning" for billionaires is still on the horizon. Suzanne Jimenez, chief of staff for SEIU-UHW, stated that if the state fails to address healthcare funding, the union would consider a billionaire tax ballot measure again in 2028.
However, the defeats of Propositions 40 and 44 represent significant financial and political losses for Regan and SEIU-United Healthcare Workers West. The scale of the spending and the decisive rejection by voters have led some to view these outcomes as a major setback for the wealth tax movement in California and potentially nationally.