DNC host officials short on cash

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DNC host officials short on cash

The committee for the Democratic convention considers cuts in light of the fundraising shortfall.

By Chuck Plunkett

The Denver Post

Article Last Updated: 05/30/2008 10:40:47 AM MDT

Millions of dollars behind in raising money and unlikely to meet a fast-approaching final deadline, the Denver committee hosting the Democratic National Convention is considering spending cuts.

Committee sources say they are working with the Democratic National Convention Committee to consider lowering the $55 million in private cash and donated services that must be raised to bring the convention to town. The cuts would be made to the many parties the host committee is obligated to throw for the delegations and the news media, and other hospitality functions not tied to production aspects inside the convention hall.

"There have been no specific decisions made," host committee spokesman Chris Lopez said. "We're always identifying costs and weighing them against our anticipated revenue."

Lopez said the committee is still working to satisfy its full obligation.

Steve Farber, a Denver lawyer leading the host committee's financial charge, agreed, saying, "I continue to believe we are going to raise the money."

With less than 90 days to the convention and no way to stage it elsewhere, the shortfall in funds could mean the Democratic Party's plan to showcase itself in a smaller city will result in making do with less.

The development could likewise hurt Denver's desire to showcase itself, both in the civic programs it wants to stage during the convention week and in future bids.

"It's never good to not deliver the goods," said Eric Sondermann, a political analyst in Denver.

Sondermann says he thinks it's understandable that the money has been hard to come by because potential donors have been reluctant to step in without a clear Democratic presidential nominee. The problem is worsened by the possibility that a vote on the convention floor might be what settles the question of whether to seat delegates from Florida and Michigan.

Also, Denver has fewer corporate headquarters than past host cities, and fewer also than St. Paul, Minn., where the Republicans are holding their convention — and where fundraising is on schedule.

"But whether those are accepted as reasonable explanations years down the road when the particulars of 2008 are forgotten and Denver is making an application for some major event, time will tell," Sondermann said.

$15 million short of June goal

Host committees often struggle with fundraising until much closer to opening day, when big-city mayors and big-state senators and other political powers come to the rescue. But Colorado lacks that kind of clout, and the host committee leadership within the last week and a half concluded the full $55 million could be impossible to fulfill.

DNCC spokeswoman Natalie Wyeth declined to discuss the matter but said in a statement, "We are always reviewing our budgets and plans to ensure we are being fiscally responsible and budgeting efficiently and effectively throughout the planning period."

The host committee sources didn't specify an amount they wish to cut. But committee officials are $15 million short of the $40 million in cash they are contractually obligated to raise by June 16.

The committee also must raise $15 million in donated services, which, if those aren't offered, must be bought. The value of donated services offered to date has not been released.

The committee never established an $19.5 million line of credit it agreed to in its contract with the DNCC. Officials had said they didn't think it would be necessary. Now those officials say it would be impossible to establish.

Mayor John Hickenlooper has frequently commented about the "backbreaking" work of trying to raise the money. Earlier this month, he said, "I'm not sure I could put in any more time. There's weekends, there's nights. My 5 1/2-year-old's ready to ship me off to Siberia."

He declined to comment for this story.

Denver's committee missed its first milestone in June 2007 by $1.5 million but hit its second deadline in December with $15 million. It missed its third deadline March 17 by $5 million, and has raised only $2 million since then.

Chuck Plunkett: 303-954-1333 or cplunkett@denverpost.com

Democratic National Convention fundraising progress

JUNE 2007

Goal: $7.5 million

Actual: $6 million

DECEMBER 2007

Goal: $15 million

Actual: $15 million

MARCH 2008

Goal: $28 million

Actual: $23 million

JUNE 16, 2008

Goal: $40.6 million

Current: $25 million

http://www.denverpost.com/breakingnews/ci_9421155