/ 5 March 2004

Now Kerry faces the $100-million man

Two days after his coronation as the Democratic party’s presidential nominee, John Kerry faced up to a hard truth on Thursday: George Bush has a $100-million head start in the election campaign fundraising race.

While Bush has $104-million in hand, Senator Kerry enters the presidential race with his reserves depleted by his party’s primary contest. He has barely $2-million, according to the latest figures from the federal election commission.

But Democratic strategists were optimistic on Thursday that they would narrow that gap — putting their faith in Kerry’s decision to refuse public funding in the primaries, which means that there is no limit on how much he can spend until he is formally nominated, and their success with internet fundraising.

On Wednesday the Kerry campaign brought in $1,2-million in a 16-hour period. That breaks last year’s Democratic record of $800 000 in 24 hours, by Howard Dean’s supporters.

”If 1960 was the first television election, 2004 will be the first internet election, and that bodes well for the Democrats because the internet is a great leveller,” said Andrew Tobias, treasurer for the Democratic national committee. ”It is so inexpensive to get the word out, compared to direct mail or other means.”

Democratic activists yesterday embarked on a 50-city fundraising blitz, drawing on the supporters’ lists of Kerry’s defeated rivals. In a page from the Dean campaign, fundraisers are seeking donations of as little as $10 — hoping that the small amount will encourage multiple gifts — as well as the maximum legal amount of $2 000.

But none in the Democratic camp was under any illusion that they would be able to match their Republican opponents’ fundraising efforts.

Bush has topped-up his election war chest during a series of events in California. He raised $3,5-millionn for the Republican national committee at a single dinner at the home of a billionaire sports promoter.

While Kerry is married to a multi-millionaire — his wife, Teresa Heinz Kerry, inherited more than $550-million from the pickle empire — she is not making any contributions. He mortgaged his house in Boston to raise $6-million.

His decision to forego public funding during the primary contest means that the Democrats are free to raise — and spend — as much as they can between now and the leadership convention in late July.

Bush enjoys a similar freedom until the Republican convention in late August.

Once both candidates are formally nominated, they operate on equal ground and with equal constraints. Presidential candidates are allowed to spend $74-million during the campaign, with an additional $16-million outlay by the party. Until then, however, the airwaves belong to the candidate who can buy the most ad time.

Kerry’s decision not to take public funds gives him a huge advantage compared with Al Gore, the Democratic nominee in 2000, who was only entitled to spend $9-million in the same period. Democratic strategists say that limit hamstrung Gore.

”In many respects Kerry is in a better position than any other recent nominee because he chose not to take public funding,” said Anthony Corrado, an expert on campaign finance at the Brookings Institution. ”His success in quickly wrapping up the nomination and the undivisive nature of the nomination campaign means he can now tap into a broad base of donors.”

The intensity of emotion during the primary season, which saw record turnouts in many states, was another good sign for Mr Kerry. Democratic supporters contributed some $175-million to their candidates during the nomination process: $40-million to Kerry and $135-million to his rivals. That, Corrado argues, shows the strength of the Democrats’ determination to defeat Bush.

In addition, Kerry can call on the Democratic national committee — which has promised to raise funds to broadcast television adverts until the convention — as well as liberal organisations.

Groups such as MoveOn.org have also rallied behind Kerry, and were due to release a series of adverts attacking the president. However, their fundraising power has not been fully tested, and they faced a legal challenge by Republican party organisations.

Cashing up

  • After party conventions in late July and August, the federal government will hand both the president and his Democratic rival an estimated $74,4-million in public money for their autumn campaigns

  • George Bush has set a private fundraising goal of $150-million-$170-million. By the end of January he had raised a record $143,5-million

  • Add the federal money that Bush will receive and he could have up to $250-million to spend — $75-million more than in 2000

  • The Republican fundraising campaign deploys ”Rangers” committed to each raising $200 000, ”Pioneers” who promise $100 000, and a new class of under-40s, ”Mavericks,” who pledge to raise $50 000

  • John Kerry’s aides say a record $1,2-million was raised via the internet in less than 24 hours following the Super Tuesday primaries and caucuses – Guardian Unlimited Â