What's the deal with financing?

[Killarney]

I'm trying to understand the financing aspect of the election. It is my understanding that (because of their decision to not accept matching funds) Dean and Kerry are the only candidates who have the capacity to get more than $45 million. The other candidates will all be capped at $45 million. Am I understanding that correct?

If so, is there any way around it? For instance, if Clark is our nominee and he is capped at $45 million and Bush has a gazillion bazillion wazillion dollars... what are our options to fight back? Moveon and organizations like that? Can they advertise for a candidate (like Clark) or just in general (anti-Bush)?

Thanks. :)

[Killarney]

1. Kick?

:kick:

[hedda_foil]

2. Your take on the candidate $ is correct.

Groups like moveon can do anti-Bush ads but not vote-(insert name of Dem candidate) ads. Makes it impossible to directly answer smears or to present a positive view of the Dem candidate under those circumstances. This is NOT a non-issue or a red herring. This is real, folks.

[Tom Rinaldo]

3. Yes it is real

It is a valid Pro Dean argument. Kerry has opted out also, so theoretically he can raise whatever he wants, but he has had trouble raising money period. Clark has spent significantly less than other top tier candidates, like Gephardt and Lieberman (and Dean), to date because of Clark's very late entry into the race, so he still has most of his powder dry. Therefore Clark likely would have some real money left he could tap into to dirctly counter personal smears and the like, while the straight out Anti-Bush line would fall more on Move Out, Unions, etc. to fund and push.

Clark would also get more free media time, in my opinion, than the more traditional Democratic potential candidates, because his is an unusual and more compelling story than yet another Senator running for President. So advantage Dean, with Clark, and hypothetically Kerry, being the only other Democrats I think who can continue putting up a decent fight before the Convention.

[revcarol]

4. Kerry has trouble raising money...???

He raised $20 MILLION, but most of it is GONE. Guess he didn't serve rubber chicken at those $2000 a plate dinners where he got most of it.

To correct you, NOW he has trouble raising money because he's tapped out the fat cats and ordinary people aren't contributing.

Question, though. I thought the candidates made their decision about whether to go with fed limits for the primary only, at this point. And I thought another decision would be due after the nominee was selected. Am I wrong?

[Tom Rinaldo]

5. Thanks for your correction, and come to think of it....

You may be right about that distinction.

And I did mean he is having trouble now raising money.

[Killarney]

7. Anyone know about this question?

Is the $45 million cap only for primaries or is it for the total (Primary and GE)?

[Lobo_13]

6. It breaks down like this

Back in November, all declared candidates had to decide whether to accept federal matching funds for their campaign. If they take it, they receive matching funds for the first $250.00 of every person who donates:

Example:
Candidate A gets one donation for $2,000.00. Candidate A will receive $250.00 to match that donation.
Candidate B gets $250.00 donations from eight people. Candidate B will receive eight matching contributions totaling $2,000.00
Candidate C gets $500.00 donations from four people. Candidate C will receive four matching contributions totaling $1,000.00

After the conventions, the candidates will decide if they will take a lump sum of $77,000,000.00 for the GE. Both candidates will probably take it because it will be impossible to raise that much in the two months before the GE. They will also be able to get $18,500,000.00 from their party, but that turns out to be a push.

But the devil is in the details. If a candidate takes matching contributions for the primary, he or she will be held to a strict cap of $45,000,000.00. On top of that, the maximum matching amount is capped at $18,500,000.00, or 75,000 $250.00 donations.

This is going to translate to a $100,000,000.00 gap between Bush and any candidate who won the nomination and took the matching funds. Even if said candidate scimped and saved and saved as much on expenses as they can, they will still be looking at a $100,000,000.00 gap between him/her and Bush.

Since Bush did not take matching funds, he will be able to spend every penny of his estimated $200,000,000.00 before the GOP convention. And to those who say that he wouldn't dare attack a certain candidate on national security, two words: Max Cleland.

Now, on to the 527 orgs. Yes, there will be lots of money used to work Bush over. But the door swings both ways, so there will easily be equal money to bash whoever the candidate will be. That will give the advantage to Bush, because he will be free to spend his money to defend himself against 527's and work his base and present a positive face. Someone capped at the maximum won't be able to do that.

I want to be clear about the cap. Once it's hit, the candidate will have to stay home. He/she won't be able to buy a plane ticket, a hotel room, a happy meal, a pen, anything that can be used in the campaign. He/she won't be able to accept gifts such as plane tickets, hotel rooms, happy meals, pens, anything that can be used in the campaign. Hopefully, they will have the foresight to pay rent and other forseeable expenses beforehand.