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Clinton Debt Means Tough Choices Ahead
May 21, 2008 9:29 AM
ABC News' Tahman Bradley Reports: Sen. Hillary Clinton, D-N.Y., is carrying $19.4 million in debt as of April 30, 2008 according to her campaign's Federal Election Commission financial disclosure report filed late last night.
As of the final day of April, Clinton owed vendors $9.4 million and had loaned her presidential campaign $10 million. FEC reports require that a candidate calculate debt by adding money owned to vendors and personal loans. Presidential candidates must disclose their finances to the FEC on the 20th day of each of month.
It is likely that the Clinton debt increased during the first 20 days of May, but there is no way to know how much new debt she added. The Clinton campaign has announced that she loaned herself an additional $1.4 million in May, but that won't appear on the books until the campaign files its June 20 FEC report.
There has been much speculation about how Clinton might work to retire her debt if she drops out of the race. Some Democrats have suggested her nomination rival, Sen. Barack Obama, D-Ill., might help by raising money for her in a sign of party unity. Obama has said it's premature to talk about working on her behalf to retire debt because the nomination contest is still ongoing.
Another viable option, campaign finance experts say, is the possibility that Clinton might transfer the money she raised for the general election, unavailable for her use right now, to her Senate reelection account, and have that account assume her outstanding debt. In order to do so, FEC law would require Clinton to ask donors if they want their contributions redesignated to her Senate campaign.
Paying herself back the money she pumped into her campaign might prove to be trickier if she exits the race. FEC rules limit a candidate from raising more than $250,000 after the conventions to pay personal debt. However, she has until now and the Democrats’ August convention in Denver to fundraise to pay herself back.
With an April fundraising haul of $21 million, Clinton added to her overall stunning fundraising total this election, which is now approaching $200 million. The eye-popping total is surpassed only by Obama. He added $31.9 million to his campaign coffers in April. In all, he's raised nearly a quarter of a billion dollars this election.
Obama's current FEC report shows his campaign $2 million in debt.
May 21, 2008 | Permalink | User Comments (78)
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obama in debt? lol are you sure?
Posted by: bhrandon | May 21, 2008 9:45:16 AM
I also not keen to contribute more in order to offset Hillary's debt. In Obama camp we have been organised and do not owe anyone. Why wasn't she?
Posted by: Peace | May 21, 2008 9:52:00 AM
Isn't it illegal to raise money that can only be used for the general election and not the primary, shuffle it to your senate campaign, then shuffle it to pay your primary debt?
That's basically saying the money was for the primary.
With accounting like this, we'll see more Enrons and mortgage companies making billions why we're stuck paying for it.
Don't say you're for the poor, while you use corrupt accounting practices.
Posted by: Debbie | May 21, 2008 10:04:37 AM
No wonder Hillary doesn't care about staying in a race she knows is already lost for her - if at the end of the day she will not be responsible for paying her debt - I find that totally irresponsible as a candidate and selfishness toward the party.
Please Hillary - leave!!!
Posted by: Janeth | May 21, 2008 10:13:52 AM
Obama in debt because he had to spend so much, to make less than half the voters.
Does that tell anyone anything?
Hillary is the best candidate for the Nominee and would Beat McCain, and make the better President.
The DNC probably still want their puppet though. They might stick with Obama and his one time voters. At the cost of The democratic party.
The people, the voters want Hillary.
Hillary should start he own party.
RDWB = The real Democrats with out the Bullcrap. Would beat McCain and Obama easy.
Posted by: seah | May 21, 2008 10:15:18 AM
Obama should be a republican he sure runs like one what a dirty pol.
Posted by: Bishop | May 21, 2008 10:19:24 AM
Obama is buying he way to the top of the ticket
Posted by: Bishop | May 21, 2008 10:21:50 AM
Here's how you do it, Hillary:
Stop. Stop today.
Ask each of your supporters to send $2 to your campaign. Your debts will be paid and you can go back to New York without much difference being made one way or another.
And to think I was thrilled with a Hillary candidacy at one time. Wow.
Posted by: Susan | May 21, 2008 10:23:36 AM
Ready to lead on day one? She could not even manage an effective presidential campaign even though she has been involved with them since 1972. This debt build up is just another mess that the Clintons will expect other people to clean up. Party unity is one thing and I would expect the Obama campaign to make some effort to help HRC on the campaign dept. But considering the irresponsible manner in which she and Bill have conducted herself, that assistance should be limited and not distract from the funds Obama needs to raise for the general election. Let her go the senate campaign route and pay the bulk of it that way. After all, she raised enormous money in her 2006 re-election campaign against token opposition and then transfered 10 million left over to the presidential campaign. Clean up your own mess Hillary!
Posted by: DMR | May 21, 2008 10:23:59 AM
Mary: I will not stay for a second if Bush crashed a party that I was in. So if 75,000 hung in there for Obama, that tells you that they wanted to see him.
Obama's debts are current debts for the current month which usually get paid up before next fillings with FEC.
I'm a registered Republican, white, and will be voting for Obama. We can not be sucked in to a war that empowered Iran, wasting $10 Billion every month; high gas prices; high unemployment; high foreclosure; high civil rights insurgencies [racism]; and low morale worldwide because of Bush and Cheney and far-right Republicans. Shame on us!
Posted by: John Adams | May 21, 2008 10:27:08 AM
1 Quarter of a BILLION dollars!!! And still over budget on just trying to get nominated? Am I the only 1 seeing this problem? Is this an indicatation of things to come if elected?
Posted by: Mike | May 21, 2008 10:27:52 AM
For a candidate declared "out of the race" by Obama and the media, Hillary is doing an amazing job fundraising and WINNING! Obama has George Soros and his 70 millionaire/billionaires behind him raising and bundling money for him. And Obama counts sales of bumper stickers, key chains, etc. in his fundraising totals. Does anyone know if Hillary or McCain's campaigns include sales of merchandise in their fundraising totals. Hillary is tough and will continue fighting for democracy, even if the fix is in! Let's go to the convention!
Posted by: calli | May 21, 2008 10:29:14 AM
Who will pay her debt? I guess these people who accused everyone of being sexist should start donate heavily to her, so that she can get back her own money..lol..Is this the lady who wants to be President. Reminds me of Bush....
Posted by: Kissoon Ramawad | May 21, 2008 10:30:49 AM
Hillary's poor financial activities make you kind of glad Obama is the frontrunner. Just imagine what she would do with our national debt. She should be personally responsible for the debt she accumulated to stroke her ego.
Please fade away gracefully.
Posted by: Mike | May 21, 2008 10:31:08 AM
As usual you have the bigots writing in trying to slam Senator Obama because he ran a wonderful campaign financially and otherwise. I contributed to Senator Obama's campaign, but will not give anymore money if it is going to Hillary. If she can't handle her campaign finances any better than she has, then shame on her. Plus she has run a negative and hateful campaign.
Since when does the other candidate have to help get the other out of debt?? Why aren't her supports funding
her? They want her in so badly, let them get off the cash!
Posted by: Shay | May 21, 2008 10:35:50 AM
For some family that earns 40+ million a year, a debt of $10 million is nothing to them. It's surprising theat they haven't took on more debt. It's all about leverage.
Posted by: PC123456 | May 21, 2008 10:38:59 AM
Quote: "Hillary should start her own party."
Yeah right! Let's see, what shall we call it? The 'compulsive liar's party'? The 'owe your vendors millions that you won't pay' party. The 'stay in the race till they drag you away' party?
Posted by: willy | May 21, 2008 10:48:00 AM
Hillary ran her campaign like she would have run the country. Thank god she did not win. She would have spent our tax dollars without ever checking the balance. She would have raised taxes instead of using what she had. She did it in this campaign she would have done it if elected.
She and her crew mismanaged her entire campaign and noe it is the "male media" against her? Give me a break! She always has to blame someone. I should buy her a mirror then she could see who she should blame.
Posted by: Fred | May 21, 2008 10:50:54 AM
Quote: "Hillary should start her own party."
The 'I personally ruined the democratic party, let's see how long my own party lasts'.
Posted by: willy | May 21, 2008 10:54:47 AM
If Hillary is doing as well in the Presidential election race as she claims, then why isn't she getting the kind of money from her supporters that Obama gets from his supporters? It just doesn't make any sense, does it? I guess her supporters are willing to voice their support for her but they don't want to put their money where their mouth is. And if she can't raise enough money to succeed in the primaries what does that say about the general election? Hillary's supporters need to come to the senses and realize that this dream is finished. Let's move on together and start to focus on McCain. Obama/2008
Posted by: PhilBgood | May 21, 2008 11:05:14 AM
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