Candidates' Cash Flow Ahead of Super Tuesday
Feb. 4, 2008 -- Their ranks have thinned, but the presidential hopefuls continue to set fundraising records, not all of them desirable.
Former New York City Mayor Rudolph Giuliani ended his bid for the Republican nomination after spending more than $48 million -- and winning just a single convention delegate. Even adjusted for inflation, that figure easily beats the $11 million that former Texas Gov. John Connally famously spent in the 1980 GOP primaries for just one delegate.
The candidates filed their 2007 year-end reports at the end of January. Reports on their January finances are due Feb. 20. Here’s what the money situation looks like going into the Super Tuesday slugfest:
| Democrats | |
|---|---|
| Candidates | Liabilities |
Sen. Hillary Clinton (NY): Her 2007 fundraising finished strong, with $23.4 million for the primary campaign -- slightly ahead of Obama. The Clinton campaign suggests that her January receipts will be somewhat less than Obama's. She has benefited from several million dollars' worth of independent ads and organizing by the American Federation of State, County and Municipal Employees, the American Federation of Teachers and EMILY's List. |
About half of Clinton's 2007 money came from donors who gave the maximum $2,300 contribution for the primaries and thus can't be solicited again. Only 14 percent came from donors who gave $200 or less, compared with 32 percent for Obama. |
Sen. Barack Obama (IL): Obama raised more primary funds than Clinton in 2007, and more than $1 million a day throughout January. In the fourth quarter, 47 percent of Obama's money came from small donors ($200 or less), contrasted with 15 percent of Clinton's funds. Obama's campaign claims to have an astounding 650,000 donors. Obama initially had little support from outside groups. But after New Hampshire, the UNITE HERE union (hotel workers and textile workers), locals of the Service Employees International Union and MoveOn.org began working independently on his behalf. |
His campaign still may lack the organizational depth and power of Clinton's, and his support from outside groups is weak compared with hers. |
| Republicans | |
|---|---|
| Candidates | Liabilities |
Ex-Gov. Mike Huckabee (AR): Huckabee's fourth-quarter receipts ($6.6 million) nearly matched McCain's receipts ($6.8 million). |
One strong quarter and a win in Iowa's GOP caucus failed to give Huckabee's fundraising a sustained boost. The fourth-quarter surge accounted for more than 70 percent of Huckabee's 2007 receipts. He appears to lack the cash to be a major contender in the 21-state Republican battle on Super Tuesday. |
Sen. John McCain (AZ): Front-runner status may soon heal McCain's financial problems, as party regulars fall into line. Meanwhile, his primary victories indicate the big money doesn't always win. Overall, McCain has spent $38 million, compared with $86 million by Romney and $20 million by Huckabee. Like the other Republicans, he has gotten no significant support, or opposition, from independent groups. |
McCain finished 2007 in the hole, with $2.9 million on hand (including both primary-season and general-election dollars), but $4.5 million in debt. His campaign scraped by on a line of credit, which was secured largely with McCain's fundraising lists as collateral. That meant that McCain, age 71, had to take out extra life insurance, because the fundraising lists would lose value without him. |
Rep. Ron Paul (TX): The black-sheep candidate of the debates turns out to be a fundraising powerhouse. In the fourth quarter, Paul outraised every other Republican candidate, and he's far less dependent on big donors than his rivals in either party. He finished the year with $7.8 million on hand -- more than any other GOP hopeful -- and no debt. |
Paul is discovering, as various self-financing congressional candidates did in the 1990s, that winning requires more than money. He hasn't yet converted his cash into an organization that can win a primary. |
Ex-Gov. Mitt Romney (MA): Romney's great strength is the financial weakness of McCain, his main rival. Romney finished 2007 with $2.4 million on hand, compared with $700,000 available to McCain for the primaries. Romney lent his campaign $35.4 million of his own money in 2007. He won't disclose his personal budget for January, but it will become public Feb. 20. |
Romney's donor base seems to be dwindling. In the fourth quarter, donors gave $8.8 million, versus $18 million from the candidate, a grim 1:2 ratio. The donor base skews more toward the wealthy than any other Republican’s, and an increasing percentage of the donors are maxed out for the primaries. |
