RNC Takes Out $10 Million Credit Line

KANSAS CITY, MO -- The RNC's Budget Committee as approved acquiring a $10M line of credit in order to cover the party's financial shortfall, a move committee members called essential to winning Dem-held seats this fall.

The money will be directed wholly to the RNC's political department in order to fund Victory programs, the sources said. Those Victory programs will serve as the party's main get-out-the-vote operation for the midterm elections.

The line of credit is not unusual, though committee sources said some in party leadership, including chairman Michael Steele, were reluctant to draw a debt. But committee members argued the money would help win back Dem-held seats; without it, argued DE national committeewoman Priscilla Rakestraw, the party would leave winnable seats on the table.

Simply taking out a line of credit does not mean the party has incurred debt right away. It gives the GOP easy access to money if needed later in the cycle; during big years for Dems, both the DCCC and the DSCC have taken out their own lines of credit in a last-minute bid to pick up seats. RNC spokesperson Doug Heye refused to comment on the line of credit.

"While I can't comment on any actions the committee might take, we are committed to putting resources on the ground that will help bring big victories in November," Heye said.

Budget concerns have grown of late as the party's cash flow has suffered. In June, the last month for which numbers are available, the RNC raised just $5.9M and had $10.9M in the bank. The party carried $2M in debt, though Heye told Hotline OnCall at the time that debt has been paid off.

State parties and GOP sister organizations typically rely on the RNC, during midterm election years, for financial assistance. But although Steele has directed $2M each to the NRCC and the NRSC, and sent a few million more to state parties, state party leaders are nervous that Dems will be able to outspend them in time for the midterms.

The DNC ended June with nearly $11M in the bank, though Dems still carry a $3.9M debt. The DCCC has nearly twice as much money on hand as the NRCC, while the DSCC holds a narrow cash lead over the NRSC.

"I think we're going to have enough money to cover" the Victory programs, said IL GOP chair Pat Brady. The budget committee has proposed substantial cuts to the party's finances, he said, but not to the political department.

The budget feud spilled into the open last month when RNC treasurer Randy Pullen amended several previously-filed FEC reports to show debt on the party's books. Since then, Steele and Pullen have feuded over party finances in an increasingly public battle that has other RNC members wincing.

Pullen has accused Steele's top aide, RNC chief of staff Mike Leavitt, of withholding information from the treasurer. Steele allies, meanwhile, have moved to publicly embarrass Pullen; NM national committee member Patrick Rogers, who is close to Steele, suggested in a letter that Pullen could face legal action for revealing privileged intra-party information.

And on Tuesday, at a meeting of state party chairmen, ID GOP chair Norm Semanko passed a resolution urging the RNC executive committee to launch an investigation into leaks of proprietary financial information. Steele himself railed against the leaks before the vote, according to a source at the meeting.

While committee members have feuded with Steele and with top party officials, budget committee members said Wednesday's decision to secure the line of credit sent a strong vote of confidence in RNC political director Gentry Collins. "Collins is one of the best political minds in the country, I think," Brady said.

Party officials gathering in Kansas City are optimistic in the GOP's ability to win back seats in both chambers of Congress. At a press briefing, several prominent state party chairmen said they were hopeful of winning back at least the House, if not the Senate, too.

"We need 39 seats to win the House. I think it's safe to say we're going to win 45 or more," said ex-NV Gov. Bob List, who now chairs the NV GOP.

List predicted his party would defeat Rep. Dina Titus (D-NV) and Senate Maj. Leader Harry Reid, while Brady said his state would send 3 new GOPers to Congress. The NRCC is targeting Reps. Bill Foster (D) and Debbie Halvorson (D) and is working to keep the seat Rep. Mark Kirk (R) is vacating in GOP hands.

Updated with Heye's comments.