RNC Debt: Republican National Committee Facing Big Cash Problem

The RNC is reportedly facing more than $15 million in debt, a shortfall that will require it to delay payments for outside political services and almost certainly serve as a bad omen for Chairman Michael Steele, who is currently dealing with a number of prospective challengers for his position -- if he decides to seek another term.

The Washington Post reported Wednesday:

"We will not be able to pay off the vendors this week," wrote RNC Chief Administrative Officer Boyd Rutherford to Derek Flowers, a member of the RNC's political team, in an email obtained by the Fix. "We will be slow in paying as we are having a cashflow challenge. Everyone will be slow paid until after the first of the year."

Flowers shortly thereafter announced that he'd be resigning from his position, effective immediately.

The internal dispatch was released ahead of December's final FEC report, out Thursday, which looks to be sure to heap additional bad fiscal news on the RNC. While October's report showed the RNC with $4.5 million in debt, Politico reports that the latest filing will show the committee with more than $15 million in debt.

None of this stands to help Michael Steele, who was absent from an RNC debate Wednesday featuring some of his potential successors. Though Steele is already officially contending with strong opposition from former Michigan GOP chairman Saul Anuzis and former U.S. Ambassador Ann Wagner, the short list of likely candidates extends far beyond these first two names.

Among those is Gentry Collins, a top RNC aide who quit in November after blasting out a severe four-page memo highlighting the committee's fundraising failures, which he attributed to Michael Steele.

Also expected to join the race soon is Maria Cino, a former Bush official who was recently bolstered by news that Dick Cheney and other administration officials were organizing a high-profile fundraiser in order to channel money to her 527, which was created in part to bankroll a run for RNC chair.

Other names that have been floated include Connecticut GOP chairman Chris Healy, RGA executive director Nick Ayers and Wisconsin GOP chairman Reince Priebus.

Comments

[jaborine]

05:36 PM on 12/05/2010

The news of the RNC debt will cause the people whose eyes are already open to yawn and ask,
"What else is new?"

The people whose eyes are closed will remain blind because they refuse to see flaws in what they believe. In their view, it's every man for himself, and women, children, disabled,and aged must
fish or cut bait.

[richardnj]

09:09 PM on 12/04/2010

So much for the small businesspeople the Repubs say they represent. They are the vendors not getting paid. It is one thing to idealize them in campaigning, quite another to actually pay them for their work. Hope this opens some eyes.

[Larianne Milosavljevic]

09:45 AM on 12/03/2010

I am sure that their uber rich and corporate sponsers will bail them out, remember they have all stolen money legally for years!!

[riffenberg]

11:08 AM on 12/03/2010

Well, the Dems should give the public a break and give blanket tax forgiveness like they have given themselves. After all half of the Democrats are either raising taxes to make up for those Dems. who or not paying taxes. .
Tax owed by Dems. Here are a few. Rangel %75,000, Tom Daschle 100,000 and Geithner LOL! $34,000
Anyone go to prison?

[Justdontgetit]

09:01 PM on 12/02/2010

Balanced budget??????????

HaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHaHa

[Openeyes]

07:44 PM on 12/02/2010

If only they had bankrupted themselves before bankrupting the country.

[mauibucky]

05:58 PM on 12/02/2010

I thought Republicans didn't like deficit spending.

[blueman00009]

05:27 PM on 12/02/2010

Shoot. After citizens united, the rnc is meaningless. Bet it virtually ceases to exist before 2012. The rnc is a patsy position. All the cash being funnelled into the private groups eliminates any use for the rnc.

[amd02148]

05:18 PM on 12/02/2010

I call it karma.

[apogee2perogee]

05:07 PM on 12/02/2010

I thought these guys were all about 'fiscal responsibility' ? ROFL How many cons will look right past this tell on the true nature of the RNC ? If cognitive dissonance caused heads to pop it would be fireworks time ....

[Openeyes]

07:46 PM on 12/02/2010

FISCAL responsibility? Oh heck, we thought you said PHYSICAL responsibility, that's why we want to spend so much on the military!

[apogee2perogee]

08:02 PM on 12/02/2010

heh heh heh That's about where they come from...

[storeysound]

05:01 PM on 12/02/2010

Perhaps an earmark will cover the shortfall.

[Pat Padrnos]

04:52 PM on 12/02/2010

I certainly hope the Republicans don't pretend to be surprised. The signs have been there ever since Steele has been in that job.

[Bellla]

04:33 PM on 12/02/2010

Ha Ha! Soo Funny! I hope their interest rate is 42%! Cancel their plastic, Foreclose on their property! Repo their limos and Escalades!
And these are the "fiscal responsibility" guys, and they won't be paying their vendors this week? Ha!

[ChezMJ]

04:14 PM on 12/02/2010

Yep. These are the folks the electorate was sooooo sure could handle the economy better than the Dems...

[MohammedAbbasi]

04:08 PM on 12/02/2010

Gosh maybe the RNC can invade Iran?

[Openeyes]

07:47 PM on 12/02/2010

$arah can see Iran from her office - she can lead them.

[BittyBittyChangChang]

03:41 PM on 12/02/2010

Is Steele a Democratic plant?