McCain Camp Plans End Run Around AZ GOP

Sen. John McCain (R-AZ) has lost the endorsement of a key leader of his own party, and a behind-the-scenes feud is emerging that could put McCain at odds with GOP activists in his home state.

McCain and the AZ House delegation have agreed to divert money for the party's get-out-the-vote efforts away from the AZ GOP, sources tell Hotline OnCall. The decision comes after a contentious meeting between the McCain camp and top state party officials, according to sources on both sides of the debate.

The decision highlights a contentious relationship between the state's DC delegation and local party leaders back home, a relationship that often works at cross purposes. For years, those close to McCain have sought to oust party chair Randy Pullen, who has a following among the conservative grassroots.

The latest controversy, which has been quietly simmering for months, comes as party leaders prepare for the Nov. midterms. In AZ, the stakes are particularly high; Gov. Jan Brewer (R) faces re-election and a competitive primary, and the GOP hopes to contest 3 Dem-held House seats.

But with so much money expected to flow through AZ, McCain's team, led by deputy manager Mike Hellon, himself a former AZ GOP chair, has lost confidence in party leadership, and they don't trust Pullen to spend party funds wisely. Those who oppose Pullen accuse him of misspending state party money.

Pullen, on the other hand, believed Hellon and the McCain team wanted too much power and were trying to take control away from the elected party leadership, and that McCain's advisors were continuing a long-running effort to try and force him from office.

After months of preparations, McCain's campaign sat down with Pullen and other top party leaders in AZ for a final session to go over budget plans. McCain's camp wanted total control, according to those who side with Pullen, going so far as to ask for the state party's federal tax ID number in order to gain access to its bank account. Hellon told Pullen he could hand over control or "leave," according to a source in the room.

"It wasn't a request, it was a demand," said Rob Haney, chair of the Maricopa Co. GOP and a Pullen backer who was briefed on the meeting. "They've been trying to get Randy Paullen out of office ever since he was elected."

Pullen refused Hellon's demand and said he wanted control over some staffing and consultant decisions. When McCain's team told him he could not have such control, Pullen, AZ GOP executive director Brett Mecum and RNC member Bruce Ash walked out.

Hellon disputes that version of events. He says Pullen approached the delegation to ask for help raising money for the financially ailing AZ GOP, and for $35K a month from the Victory committee -- the account that handles GOTV efforts -- to cover operating expenses. Both sides agree Pullen wanted more control over some hiring decisions than Hellon intended to surrender.

"There is no Republican in the state of Arizona who needs the Victory program less than John McCain. He's got a well-funded campaign, and we've got a campaign plan," Hellon said.

After discussions broke down, the McCain team held private discussions with RNC executive director Ken McKay and chief counsel Reince Priebus about diverting the money away from the AZ GOP, though McKay and Priebus denied they were on a conference call through an RNC spokesperson.

McCain's campaign now plans to funnel money through the Yuma Co. GOP, according to sources. Yuma's party is run by Phil Townsend, a long-time McCain ally.

"This was a group decision to make sure that the folks that were actually raising the money -- the delegation -- had the ability to make sure that it was spent in a proper manner and not used to pay off debt that Randy had mismanaged," said one source close to AZ's members of Congress.

Though McCain, if he wins the GOP primary, would be a shoo-in for re-election, the national party will spend money in AZ. GOPers will target Reps. Ann Kirkpatrick, Harry Mitchell and Gabby Giffords, 3 Dems all elected over the last 4 years. Gov. Jan Brewer (R) also faces voters, and though she has a strong challenger in the GOP primary, the seat will be competitive no matter who faces the likely Dem nominee, AG Terry Goddard, in Nov.

An RNC spokesperson said all funding decisions would be made in conjunction with party leaders. Townsend did not return calls seeking comment.

The tension highlights McCain's nervousness about his own re-election bid. Though Dems will not field a strong candidate if McCain is the GOP nominee, he has to get past ex-Rep. J.D. Hayworth (R) first. Hayworth is a favorite of the most conservative set, and he won standing ovations for his speech at the state GOP convention last month.

During that speech, Pullen was on stage. He and McCain had a "polite" conversation beforehand, Pullen told Hotline OnCall, but McCain's team is concerned Pullen will endorse Hayworth. That tension grew when Pullen yanked his endorsement of McCain after the financing scuffle.

"It looked very early on that there weren't going to be any challengers. Once it began to look like J.D. was going to get in the race, things began to change," Pullen said in an interview. "Now, it's a major primary."

Observers within the GOP but independent of the 2 feuding camps said the fight is little more than a rehash of long-running battles inside the state GOP, which has been beset by arguments between business GOPers and those of a more activist set, interested in focusing on illegal immigration. Hayworth sides with activists, who are angry with McCain (and most of the rest of the state delegation) for pushing a more comprehensive approach to immigration reform.

But others worry that McCain is making missteps in his bid against Hayworth. Some question his choice of campaign staff, while others pointed to early radio ads against Hayworth that were poorly made. "I can't figure out if he's no just taking J.D. Hayworth seriously," said one GOP strategist not affiliated with either campaign. "The mistakes that he's making are really kind of amateur hour."

The decision to circumvent Pullen and the state party is not unprecedented. The RNC has done so in the past, including in NM in recent years. But Pullen is also the treasurer of the RNC, a post to which he was elected by a majority of that body's 168 members.

Pullen is a professional accountant and well-regarded in RNC circles, making McCain's team's decision to work around him all the more notable.