A 2009 spending spree has left the Republican National Committee (RNC) with its worst election-year cash flow this decade.| I guess life's tough. The last few times the RNC's called asking for donations we've turned them down, and now when we see their number on the caller ID we don't answer. The Dems have done terrible things to the country in the past year, but the reason the Dems are in power is because people are cheesed at the Publicans. They still seem like they're going through the motions. The other day we had a story that Denny Hastert's kid is running, which amounts to dynastic poltix as usual. Pop was dirty and there's no reason to think Sonny's not cut from the same mold, whether he's actively dirty yet or not. The Pubs aren't leading the Tea Party Movement -- in some cases they're following it, in others they're pretending it doesn't exist. That's why nobody except the most committed feels the least urgency to kick in. |
Said one RNC official: "It is very troubling, and the thing is, most people don't understand this. But it is really troubling."
The RNC had $22.8 million in cash and no debt when Michael Steele was elected chairman at the end of January, but has since seen its cash on hand drop to less than $9 million at the end of November.
Over the previous five months, while governors' battles were being waged in New Jersey and Virginia, the committee saw its cash reserves drop by a full $15 million. Through November, the committee spent more than $90 million last year, which is nearly $20 million more than the Democratic National Committee (DNC).
"They're spending money at 2002 levels when they are not raising money at those levels," said a GOP operative. "That kind of thing worked when RNC was awash in money, but you can't do that in this environment."
Off-years like 2009 are generally a time for committees to get their financial house in order. They work to retire any debt left from the last election cycle and then build a war chest in preparation for the even-year election.
The RNC, though, made huge investments in New Jersey and Virginia, betting on the momentum created by those gubernatorial races to spur more giving.
Both were big GOP wins, but the question for many in the party is whether they were worth such a dent in the party's coffers. And even subtracting the $13 million spent in those races -- $9 million in Virginia and $4 million in New Jersey -- the committee has just about broken even since Steele took over.
The Democratic National Committee (DNC) lost both races, but saw its cash on hand climb to a debt-free $13 million. That's not a whole lot better than the RNC, but the DNC began the year in much worse fiscal shape, with $5.6 million in cash and $5 million in debt.
RNC spokeswoman Gail Gitcho noted that Republicans had taken just one governorship or Senate seat from Democrats in the last four years before the wins in New Jersey and Virginia.
"The fact that the RNC committed a large amount of resources and staff in 2009 did yield a significant dividend," Gitcho said. "The goal of the RNC is to raise money and win elections. We had a strong fundraising performance last year, but have an even more aggressive approach for the 2010 midterms."