The Clinton campaign is denying rumors that it is broke. Howard Wolfson, whose $237000 monthly salary went a long way towards bankrupting the campaign said (NYDailyNews 4/1/2008)
Bills are being paid. We are continuing to raise a considerable amount of money. We had the best fund-raising month in the campaign's history [in February].
The NY DailyNews continues:
Still, a review of Clinton's fund-raising records through the end of February - the most recent available - found that Clinton hadn't paid debts to many small shops she hired to organize campaign events.In New York, records show Clinton owed money to about a dozen outfits - even though the campaign moved away from the Empire State after its Feb. 5 primary. She owed $3,598 to Hudson Yards Catering and $8,441 to a Long Island City production company.
Several mom-and-pop shops that provided services for her in long-forgotten Iowa and New Hampshire have had to beg the campaign to settle up."They just paid us a couple weeks ago," said Kyle Rhoads, whose Garner Printing was owed more than $48,000 months after the Iowa caucus was over. "It did drag on longer than usual."
Sen. Clinton has campaigned on Mandatory Universal Health Insurance, with unspecified penalties for employers who do not cover every employee. So it is especially astonishing that her campaign has fallen behind in paying health insurance premiums for its own workers: $229,000 was owed to Aetna at the end of March. The campaign claims the bill has been paid since then. Why stall on that bill?
The problem is not lack of money in the bank: $33 million raised from donors who already reached their limit (i.e., fat cats) . So it cannot be used during the Primary season.Sen. Clinton also has a large enthusiastic donor base that continues to pour in new money . But her expenses are out of control. $2.7 million to the Chief Strategist Penn, $2.4 Million to Mandy Grunwald and so on.
Sen. Clinton is not showing basic managerial skills in the running of her campaign. The campaign is much larger than any operation she has run before: the office of a Senator and First Lady only have a few dozen, not hundreds of employees. Sen. McCain too has had many financial difficulties in the running of his campaign. He is tied up in an especially complicated knot over money he borrowed with Federal matching funds as collateral.
There is however a well managed campaign: Sen. Obama's. It is not in debt and has a healthy balance of $30 million in the bank, which can be spent on the Primary. The difference is not so much in fund raising abilities as in the management of resources.
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