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Is Raising Cash for Hillary Clinton’s Debt Now Hindering Barack Obama’s Own Fund-Raising?

Date: Thursday, July 17, 2008
By: Michael H. Cottman

EDITOR 'S NOTE: This story has been updated since its original posting.

Some Democrats are expressing worry for presumptive Democratic nominee Barack Obama, saying that as he struggles to help his formal rival, Sen. Hillary Clinton, pay off a $22 million campaign debt, he has not worked aggressively to raise money for congressional candidates and may have trouble generating cash for his fight against Republican Sen. John McCain.

According to Politico.com, "Obama had done little fundraising for Democratic candidates since signing off on e-mailed fundraising appeals for the Democratic Senatorial Campaign Committee and Democratic Congressional Campaign Committee immediately after securing the Democratic nomination."

Meanwhile, Hillary Clinton's campaign is sending out letters to donors asking permission to roll a $2,300 contribution to Clinton's 2008 general election fund to her 2012 senate election fund instead of offering a refund.

And on her Web site, she is asking donors to kick in the pay down her enormous campaign bills. "Hillary needs your support," her website says. "Contribute today to help us pay down the debt from one of the hardest-fought primary races in history."

But some Democrats say not all donors are eager to heed Obama's call to help bail out Clinton -- who raked in $109 million last year along with her husband, former President Bill Clinton.






Obama is sharing one his most valuable assets -- his top fundraisers -- with Clinton to help her pay off her debt, the latest effort to heal the wounds of a bruising primary campaign. Obama asked his finance team to help Clinton pay back at least $10 million from her failed presidential campaign.

The former First Lady, who bowed out of the Democratic contest on June 7, reported a $22.5 million debt at the end of May, more than half of which was a personal loan to her presidential campaign. She lent her campaign nearly $2.2 million in May, bringing her total personal investment in the campaign to $12.175 million. She had $3.4 million cash on hand left for primary spending. She also had more than $23 million for the general election, money her campaign cannot use.

Several Democrats told BlackAmericaWeb.com privately that Clinton knew months ahead of time that she could not secure the Democratic nomination, but continued to run up a substantial tab anyway. They said Obama should not be strong-armed into fund-raising for Clinton while trying to support his own campaign. One political observer told BlackAmericaWeb.com that Clinton's financial pleas to voters and Obama resemble a political "shakedown."

Charles Ellison, chief editor for Blackpolicy.org and a political analyst on XM radio, said Clinton is "blackmailing" the Democratic Party.

"What strikes me as somewhat interesting -- and rather shady -- about this sudden obligation Obama must fulfill by raising money for Sen. Clinton is that it's extremely unprecedented," Ellison told BlackAmericaWeb.com Wednesday. "In many respects, one can argue that it's a shakedown or political blackmail: The Clintons and their supporters are basically holding the threat of party infighting and a disrupted nomination over Obama's head if he doesn't comply with their demands."

"It's all rather unseemly and a first," he added. "And it just so happens that it's the first African-American presidential nominee who's getting hustled, which presents another impression that could leave a very sour taste if it keeps up or is responsible for ruining Obama's chances. Many can reasonably argue that there are hidden and rather nefarious racial messages in this forced fund-raising obligation."

Meanwhile, Obama raised $52 million last month for his presidential campaign. The Obama campaign and the Democratic National Committee ended June with a combined total of $92.3 million in the bank. The figure represents a notable fundraising jump, especially for the DNC.

Obama reported $72 million cash on hand and the DNC $20.3 million. But the Democrats still lag Republican John McCain's presidential campaign and the Republican Party. 

Last week, McCain reported raising more than $22 million in June, which was his best month of the year. Together, the McCain campaign and the Republican National Committee began July with about $95 million in the bank.

Michelle Bernard, a black conservative and president of the Independent Women's Voice, said Obama may have challenges ahead in his battle with McCain.

"The big question for Barack Obama, having decided to opt out of public financing for his general election bid, is how to effectively continue to raise the type of funds raised during the primary process while simultaneously assisting Sen. Clinton in her efforts to retire her debt, as well as raising funds for other Democratic candidates," Bernard told BlackAmericaWeb.com.

"Although Sen. Obama has been quite successful in raising unprecedented sums of money during the Democratic primary, eventually the well will go dry," Bernard said. "There is a strong possibility that the Obama camp will find it quite difficult to raise the money that he will need to run against Sen. McCain and raise significant funds for other Democratic candidates. His supporters, while enthusiastic about his candidacy, might not be inclined to write checks for other candidates. Additionally, it is plausible that even after giving the ‘thumbs-up’ to do so, many of his supporters may be reluctant to assist Senator Clinton in retiring her debt. Fundraising during this general election cycle may prove to be a lot more difficult than earlier in the Democratic primary process."

Peter C. Groff, a Colorado state senator and publisher of Blackpolicy.org, said Obama's fund-raising talents are now being tested and stretched in unexpected ways.

"Nominees are expected to assist congressional candidates and the national party with funds," Groff told BlackAmericaWeb.com Wednesday. "But never before have they been expected to assist their broke and vanquished opponent -- and doing so after having opted out of public financing. "On top of that, the slow economy doesn't help. With the prowess Obama has displayed with Internet fundraising, it is curious the congressional arm hasn't followed suit. Doing it by U.S. mail and not email says more about the DCCC than it does about Obama."

Obama's finance team has expanded since he secured the nomination earlier this month, providing a broad base of potential assistance to Clinton. At least 200 fundraisers attended the campaign's national finance meeting in Chicago last week. Scores were unable to attend, one participant said.

In urging his top fundraisers to help Clinton, Obama was counting on them to seek out their pool of donors to raise the money in large increments. Donors who have not contributed to Clinton's campaign could give up to $2,300 to help her pay off her debts.

Craig Kirby, a Democratic political strategist, told BlackAmericaWeb.com the Democratic party is experiencing "donation fatigue".

"It's the middle of July, and certainly the first of August donations will return to the same fervor they were at prior to this bottom," Kirby said. "After that, excitement with Barack's vice presidential choice and both the Democratic and Republican conventions, donors-- big and small-- will donate at record levels."

---

Associated Press contributed to this story.




Discuss

lighthouse96 says:

If Hillary is truly for Obama and is willing to support his nomination, she should settle her own campaign debt. read more

rubinisk says:

to fed-x Hil-liar-y, puddy-fur purse,hat and matchin'puddy-fur gloves----awwwwww,alright---I'll EVEN read more

yme383 says:

I don't understand why the media thought that it was noble for Barack to pay off Hillary's debt. read more

july425 says:

Obama's camp already announced the average contribution was $68 dollars. That avg is less than it was in Feb read more

sharran0412 says:

The problem for Obama is that he has relied on internet based donations during the primaries, but now that the read more



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