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Dem convention hosts face cash crunch

By David Montero, Rocky Mountain News (Contact)

Published February 27, 2008 at 12:30 a.m.

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The host committee responsible for raising the nearly $41 million for the Democratic National Convention now believes it may need as much as $9 million more to avoid a budget shortfall.

Officials with the Denver 2008 Host Committee claim there are additional cash costs that it is responsible for beyond its $40.6 million contract with the Democratic National Convention Committee.

For example, the contract calls for use of the luxury suites at the Pepsi Center, but host committee officials believe reimbursement totals for those suite holders will be $1.5 million over the contract amount.

The contract also addresses staffing costs, including rent for downtown offices and host committee salaries. But host committee officials say that's almost $1 million more on top of the contract's $40.6 million.

Chris Lopez, spokesman for the 2008 Host Committee, said they also have to come up with $1.5 million in security costs that aren't covered under the $50 million in federal funds for the convention.

Finally, he said that if some in-kind donations don't materialize - something that has already happened - the committee could be on the hook for those bills in cash.

The end result is a host committee that feels it needs to raise at least $45 million and possibly upward of $50 million to avoid any red ink.

"We want to make good on the obligation," he said Tuesday. "The DNCC may not see those as part of the convention costs, but the host committee does, and we need to be able to cover that."

The DNCC did not comment.

The financing of a convention is a delicate issue in light of the much-publicized financial problems seen in Boston, New York and Los Angeles.

When Denver was awarded the Democratic National Convention, scheduled Aug. 25-28, some high-ranking party officials wondered if the city could pull it off.

Those fears seemed to crystallize early when the committee last year failed to meet its first budget deadline - falling short of the $7.5 million goal by $2 million on June 1.

Since then, however, the committee has met every budget deadline. The next deadline is March 17, and the committee will be required to raise $13 million more - which would put it more than halfway to the goal. The deadline for the full contract amount is in June.

Lopez said the committee is "closing in on the mark." However, officials have cited some problems, including a tight economy that has affected some donations.

Lopez said this month, for example, that a donor who was going to provide in-kind services withdrew because the company's budget was cut.

He also said the fact that neither Barack Obama nor Hillary Clinton has yet captured the nomination has slowed down some of the cash flows as donors wait to see who ends up as the nominee.

Comments

  • February 27, 2008

    9:50 a.m.

    Suggest removal

    Scott writes:

    Is it too early to say, "I told you so!"?

    Scott

  • February 27, 2008

    1:19 p.m.

    Suggest removal

    pgrove writes:

    This should surprise no one. Democrats overspending the budget. Well, that has never happened before. Democrats can't control any budget, let alone theirs. My question is why in the world are the taxpayers paying $50 million for this fiasco. Must be McCain-Feingold campaign finance reform. They should, for once in their collective lives, have to pay for something themselves and not raid my tax dollars to do it.

  • February 29, 2008

    2:54 p.m.

    Suggest removal

    pgrove writes:

    It is never too late!!!