On Saturday, April 14, the official McCain campaign made its FEC report public to the media.  It confirmed the results that had been announced at the beginning of the month: namely, that McCain lags behind Mitt Romney and Rudy Giuliani in money, and also has a high “burn rate”.  In other words, the McCain campaign has low “cash-on-hand” (COH).  It didn’t raise as much as the other two candidates, and also spent a greater proportion of what it did raise.

Let’s take a look at the numbers, as reported by various media outlets.

The LA Times had a great article filled with detail.  Among its conclusions:

McCain raised $13 million for the first quarter.  Of that $13 million: $8.4 million was spent, $5.18 million was banked, and the campaign also has a debt of $1.8 million.  The article accurately puts the numbers in context:

“McCain’s $13 million would have been a record in past years. But in a campaign in which fundraising records are being shattered, the Arizona senator’s first-quarter total placed him third — former Massachusetts Gov. Mitt Romney raised $21 million, former New York Mayor Rudolph W. Giuliani $14.7 million.Romney and Giuliani each had nearly $12 million in the bank March 31, the close of the first quarter.”Obviously, it is not a good sign for the McCain campaign, that its cash reserves are less than half of what each of its two major rivals have in the bank.  The McCain campaign has a much higher payroll: the main reason it burned through so much of its cash was that it spent $2.42 million on salaries, compared to the $1.9 million (Romney) and $1.34 (Rudy) – nearly twice what Giuliani spent, in fact.The news wasn’t all bad, though.  He raised over half of the three-month total in March ($7.2 million), implying that the direction had started to go up (although it should be noted that both Rudy and Romney raised more money in March, than McCain did).

Other “fund facts” – McCain’s top three states for donors were unsurprisingly, California, New York, and home-state Arizona.  The law firm of Blank Rome was the biggest single source, whose employees donated $118,000.  His best fund-raising region was the South (although both Northeastern rivals outraised him there).


Many of these facts were also found, in slightly different form, in this Arizona Republic article:

http://www.azcentral.com/news/articles/0415prezmoney0415.html The San Francisco Examiner had an outstanding article, which contained, in addition to the facts stated above, some extra material:

“In an effort to redirect the campaign, former Texas Rep. Tom Loeffler, whom McCain just placed in charge of fundraising, met with the campaign’s national finance chairs this week in Washington to set up a system of fundraising goals. Under the plan, so-called bundlers who raise money from wealthy acquaintances will be given targets for raising $50,000, $100,000 and $200,000, aides said.

Of the three leading Republicans, McCain had the most expensive payroll last quarter, reporting payments of $1.57 million for staff. Romney followed with $1.1 million for staff and Giuliani had a payroll total of $896,000. McCain also spent more than $600,000 on finance consulting. Romney, trailing Giuliani and McCain in the polls, spent more than $1.8 million on television advertising to build up his name recognition.

In one bright spot for McCain, his campaign reported having a total of 51,000 contributors, more than either Romney or Giuliani. Both Giuliani and Romney relied more heavily on donors who gave the $2,300 maximum allowed – Giuliani’s average donation was $520 and Romney’s was $650. McCain averaged about $250 per contributor.”Source: http://www.examiner.com/a-674391~McCain_Trails_GOP_Rivals_in_Cash_On_Hand.html 

That this means, is that McCain has the ability to go to these pre-existing donors who have already given less, and encourage them to ”max out” – give their $2,300-plus-$2,300.  This is less of an option for either Giuliani or Romney, because they not only had fewer donors, but those donors cannot contribute as much in the future.   All of this appears to be the continued fallout, from the disappointing fundraising numbers released last week, in which Senator McCain’s $12.5 million trailed rivals Mitt Romney and Rudy Giuliani.  Moreover, the “burn rate” of McCain’s campaign cash has apparently alarmed those in Arlington’s high command – hence the cuts.

Come visit the main site – http://www.campaignia.org/ – for more on the 2008 campaign in general and the McCain campaign in particular.







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