Democratic W.House hopefuls outraise Republicans

aprile 17, 2007 in Financing

WASHINGTON (Reuters) – Energized Democratic White House candidates raised about $23.6 million more than Republicans in the first quarter, in what could be an ominous sign for President George W. Bush’s party in 2008. They scooped up some $78.8 million, well ahead of the Republican presidential hopefuls who brought in $55.1 million. Democrats tapped Wall Street, law firms and Hollywood to show they have broad support and help fund expensive campaigns in states that hold nominating contests next year.
Polls have shown that Democrats are happier with their slate of candidates, which includes four sitting U.S. senators, than Republicans, who have been dragged down largely by their support of the prolonged and unpopular war in Iraq. “It’s obviously a lot more challenging for Republicans to raise money in this context … of an unpopular president fighting an unpopular war,” said Costas Panagopoulos, a political science professor at Fordham University. In addition to losing the money race, Republicans outspent Democrats $29.8 million to $19 million in the first quarter, likely meaning it cost more for them to raise less, he said.

Political newcomer Democratic Sen. Barack Obama of Illinois raised $25.8 million and spent $6.6 million while Republican Mitt Romney, former Massachusetts governor, brought in $20.7 million and spent $11.6 million to gain name recognition. The race for cash has become more critical in this election, expected to be the most expensive in U.S. history, because more states are holding nominating primaries in February 2008 like California and New York. That has forced candidates to set up operations and pay for expensive advertising in many states rather than using momentum from winning the first contests in Iowa or New Hampshire to propel them forward.

“They’ve only got six to nine months because that’s the timetable under which they have to amass the cash needed to start paying for their television and paying for their large scale operations,” said Anthony Corrado, government professor at Colby College in Maine. But hefty bank accounts do not necessarily translate into higher poll numbers. Romney led the Republican field in fund raising but he trails the polls behind former New York Mayor Rudolph Giuliani and Arizona Sen. John McCain. McCain failed to meet expectations of a front-runner, raising only $13 million and spending about $9.5 million, including $1.57 million on salaries. He has already said he would overhaul his campaign operation.

“There are a number of candidates who have now raised large amounts of money and they can invest in the second quarter to continue to build their campaigns,” Corrado said. “They now face a new test, showing that they can sustain the momentum they built in first quarter.” Much of the money raised by candidates came from big names, including Playboy magazine mogul Hugh Hefner, who gave $2,300 to New York Sen. Hillary Rodham Clinton, and financier and Home Depot board member Kenneth Langone, who serves as a finance chairman for Giuliani. Employees at Citigroup donated more than $47,000 to McCain’s campaign, $63,000 to Clinton and $27,000 to Romney, who was also able to tap his old private equity firm Bain Capital for more than $79,000, according to donation reports.

And some contributors gave to multiple candidates. David Geffen, who co-founded DreamWorks Studios, gave the maximum $2,300 contribution to Obama, former North Carolina Sen. John Edwards and Connecticut Sen. Christopher Dodd.