CQ TODAY ONLINE NEWS
– POLITICS
March 25, 2009 – 10:34 p.m.
Candidates With Deep Pockets: A Trend in 2010?
By Rachel Kapochunas, CQ Staff
Amid the current economic downturn, Republican political consultant Tim Clark has some advice for national campaign strategists: recruit self-funders.
Clark, vice president of JohnsonClark Associates in Sacramento, suggested in a recent interview that if he worked for either party’s national House campaign organization this cycle, he would actively seek out candidates who possess the means to finance their own campaigns.
“Because of the difficult economy and the difficulty that everyone is seeing raising money . . . I think that’s made self-funded candidates all the more important to find,” Clark said. “They come with their own bank account.”
In the previous election cycle, at least 18 House and eight Senate candidates loaned their campaigns more than $1 million in personal funds, according to CQ Moneyline.
Another 60 candidates loaned their campaigns $350,000 or more. In addition, numerous self-funding candidates identified their personal funds as contributions instead of loans to be repaid.
But the previous election cycle includes a time during which the forecast for the country’s economic health was less dire than today’s widespread predictions.
Jennifer A. Steen, author of author of “Self-Financed Candidates in Congressional Elections,” said future economic conditions may strongly impact the coming election season.
“People’s willingness to spend money on political activity ... is probably going to taper off this year,” Steen said. “I think it should be harder for most candidates to raise money and that makes the relative value of self-financing go up.”
Republican Doug Ose, a former Republican congressman (1999-2005) who put $6.7 million into his 2008 campaign for California’s 4th District, echoed that sentiment in a recent phone interview.
“A poor economy ends up favoring the people who have independent resources ... in a poor economy it’s that much more difficult to raise funds from third parties,” Ose said. “When they’re giving up their leased automobiles, or they’re giving up their annual family vacation . . . they’re not going to be giving money to candidates for the purpose of helping fund their campaign.”
Ose, whose family’s real estate business is a major source of wealth, cited a desire to remain in the private sector over launching another political campaign.
But another 2008 self-funder, Republican Mike Erickson of Oregon, is actively considering a 2010 campaign.
Erickson, president of a transportation consulting firm, spent a total of $3.7 million on two unsuccessful campaigns for Oregon’s 5th district-, in 2006 and in 2008.
He contends that the economy will not play into his decision regarding a 2010 campaign, but speculated that it may be a factor for other self-funders.
“A lot of people have to think twice about spending money — personal money — in an election,” Erickson said. “Do they have the resources to really commit to a tough, competitive congressional race? Now it’s probably a little tougher decision for some.”
Republican Rep. Vern Buchanan of Florida, a past self-funder, has yet to confirm whether he will run in 2010 for the Senate seat currently held by retiring Republican Mel Martinez .
Buchanan, a former car dealership owner, first ran for Congress in 2006 and contributed $5.5 million in personal funds to his campaign. He won the open 13th District seat that fall. In 2008, he contributed $800,000 to his rematch with Democrat Christine Jennings and won a second term.
State political analysts estimate that $30 million may be required to wage a competitive 2010 Senate race in Florida. The state is home to 10 media markets, making it one of the most expensive places in which to run for statewide office.
In Connecticut, wealthy Republican businessman Tom Foley, a former ambassador to Ireland, threatens to shake up the Republican field vying to challenge Democratic Sen. Christopher J. Dodd .
And there is little doubt that Democratic Gov. Jon Corzine of New Jersey will dip into his pockets to help fund his 2009 re-election race.
Corzine, former CEO of Goldman Sachs, has proven his ability to self-fund with success. In 2000, he put more than $60 million into his race for Senate and won. He later helped finance his successful 2006 race for governor.
His ability to self-fund is one reason why he remains regarded as a major threat despite recent polls that show the governor trailing potential GOP opponent Christopher J. Christie, former U.S. attorney.
Experience Still Counts
Steen notes that candidates with political experience or experience running campaigns are the most successful self-funders. According to her past research, a majority of self-funded candidates overall lose their elections.
“Most of them are politically inexperienced,” Steen said. “They can run on promises, but they don’t have any credentials to point to.” She also said self-funders may hire expensive consultants, but their lack of political knowledge means they may not have the tools to evaluate the advice they’re given.
Brian Smoot, partner at Democratic consulting firm 4C Partners LLC and former political director at the Democratic Congressional Campaign Committee, acknowledged that self-funders don’t have a strong electoral record, but said they still hold advantages for the party committees.
“It’s hard to resist sometimes — a good self-funder — because in scarce resources, if they’ve got the ability to fund their own campaign, it just provides more resources for other campaigns,” Smoot said.
Last fall’s election was no exception to the generally poor record for self-funders. Examples of unsuccessful big-spending candidates include: Ose, who spent more than $6 million on an unsuccessful primary campaign against Tom McClintock , who went on to win the seat; Republican Sen. Elizabeth Dole of North Carolina, who invested more than $3 million into her re-election campaign but lost to Democrat Kay Hagan ; and Democrat Woodrow A. “Woody” Myers, who sunk over $2 million into a campaign for Indiana’s 7th district but lost in the primary to André Carson .
There were also standout winners last cycle, such as Florida Democrat Alan Grayson . He weathered a primary with the help of personal funds and went on to defeat Republican Rep. Ric Keller in Florida’s 8th District. Grayson put $2.4 million into his campaign.
And in Louisiana’s open 4th District, Republican John Fleming survived a competitive election with the help of more than $1 million in personal loans. Fleming narrowly defeated Democrat Paul J. Carmouche 48.1 percent to 47.7 percent.
National party strategists say it’s too early to judge whether self-funders will figure prominently into their 2010 plans. One Democratic source noted that candidates in New York’s 20th District special election have raised significant amounts from donors in a short period of time and have also self-funded a portion of their finances.
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