Despite promises that fundraising was on schedule and would not be a problem for the 2012 Democratic National Convention in Charlotte, the host committee ultimately ended up about $12.5 million short of its contractually obligated fundraising. The $12.5 million is equal to about a third of the $36.6 million the host committee agreed to raise. To make up for the difference the DNC tapped into the $10 million line of credit offered by Duke energy. The Raleigh News and Observer reports:
The Charlotte host committee raising money for the Democratic National Convention came up about $12.5 million short of its goal, committee leaders said Wednesday, the day they were to file financial documents with the Federal Election Commission.
The committee was obligated to come up with $36.6 million to fund the convention proceedings. For the first time, the Democratic party imposed restrictions on where the money could come from, barring contributions from corporations and lobbyists.
Through cost-cutting, the host committee was able to get the convention budget down to $31.3 million, according to host committee CEO Dan Murrey.
But fundraisers were only able to bring in $24.1 million, in cash and in-kind contributions.
To make up the difference, the host committee was forced to tap the $10 million line of credit that Duke Energy had guaranteed to woo the convention to Charlotte. Duke Energy said the committee borrowed $7.9 million from the line of credit, which it has to repay by Feb. 28.
“Duke Energy has not and will not use any utility customer funds to pay for any aspects of the convention, or events associated with the convention,” spokesman Tom Williams said in a statement.
Neither the Obama campaign nor the Democratic National Committee will contribute toward making up the shortfall, Murrey said.
The DNC also tapped a second fund that was designed to promote the city of Charlotte, The New American City Fund, to pay for the conventions largest ticket item: $5 million for the use of the Time Warner Cable Arena. The New American City Fund was exempted from the ban on corporate donations as it was not originally intended to pay for convention expenses Oh well. What’s a few million between friends? The article didn’t mention how much the DNC spent for the right to use Bank of America Stadium, even though the DNC ultimately canceled the President’s prime time nomination speech there.
However it appeared on TV, it certainly seems that behind the scenes the finances of the DNC are a mess.