No wonder taxpayers are getting antsy about exactly who might be stuck footing the bill for the Democrats’ four-day party here in August.
The host committee for the Democratic National Convention fell $11 million short of its total fund-raising goal, collecting just $29 million as of this week’s final deadline.
The group was on the hook to raise $40.6 million in private cash to help host the DNC, but some insiders have long suggested they would actually need about $50 million.
The shortfall could have triggered a little-known clause in the host committee’s contract with the DNC Committee that calls for making use of letters of credit totaling $19.6 million.
Trouble is, the host committee never established that line of credit. The deadline to do that was Feb. 1.
We’re guessing it may have been difficult to secure credit with only balloons, confetti and Mayor John Hickenlooper’s winning smile as collateral, but it would ease our concerns a bit if the host committee had something else to fall back on should the DNC Committee need more cash.
Right now, the only back-up plan is to continue raising money. And considering how difficult it’s already been, that gives us pause. However, Kelly Jean Brough, the mayor’s chief of staff, was quoted as saying that other cities who have hosted political conventions report that fundraising “always picks up in the final months before the event, with nominees assisting in the process.”
We can only hope. We’ve heard for some months now that the Democrats’ protracted battle for the presidential nomination hurt fundraising. Well, there’s now just one nominee, and he just so happens to have an astonishing ability to raise money.
As we’ve said before, an e-mail from Barack Obama to his donor list, asking for support for the convention, would put the host committee much closer to meeting its needs.
City Auditor Dennis Gallagher sent a letter to Mayor Hickenlooper last week saying that rumors are “swirling” that taxpayers could be on the hook if the host committee doesn’t raise the needed cash.
Hickenlooper has said no taxpayer money will be used to hold the event, and that’s good. His spokeswoman, Sue Cobb, reiterated that this week, saying the city wouldn’t loan money to the convention, either.
The host committee has begun combining parties and recently canceled a media walk-through of Pepsi Center to cut expenses. So be it.
It’s OK that Denver wants to put on its best face for the DNC but, as Hickenlooper has said, taxpayers shouldn’t have to pay for it.
