Obama's Money Is More Than a Match for Republicans'

By Jonathan D. Salant

Oct. 18 (Bloomberg) -- The Republican Party's fundraising prowess isn't proving enough to overtake Barack Obama's spending advantage over John McCain in the presidential campaign's homestretch.

For example, the Democratic nominee outspent his opponent $17.8 million to $8.2 million in TV advertising in contested states during the week of Sept. 29, the Television Advertising Bureau reported.

``We're in a strong position,'' said David Axelrod, Obama's chief strategist. ``A stronger position, it's fair to say, than Democrats have been relative to Republican nominees in the past few cycles.''

Obama may have raised more than $100 million in September alone and probably will outspend McCain by a similar amount in the two-month period concluding with the Nov. 4 election, Democrats say. The September figure must be reported to the Federal Election Commission by Oct. 20.

McCain accepted $84.1 million in taxpayer money for the general-election campaign, barring him from raising additional funds. But he can raise money for the Republican Party, which then can spend on behalf of his campaign. Obama declined public funds, letting him raise an unlimited amount of money privately.

RNC Spending

The Republican National Committee reported spending $16.5 million through Oct. 14 independently of McCain's campaign, dwarfing the $1.1 million by its Democratic counterpart. The party said on Oct. 16 it will spend another $18 million on ads in the competitive states of Colorado, Florida, Indiana, North Carolina, Missouri, Ohio, Pennsylvania and Virginia.

The RNC, in a joint effort with the McCain campaign, raised $48 million between July 1 and Sept. 30, FEC figures show.

RNC spokeswoman Amber Wilkerson referred requests for comment to Brad Todd, who works on the party's independent- expenditure unit. He didn't return calls.

McCain and his running mate, Alaska Governor Sarah Palin, are seeking more help for the campaign's final days. ``Our team of reformers is ready to lead,'' Palin wrote in an e-mail solicitation this week. ``But we'll get never get there without your support.''

Major Contributors

Among major contributors to the joint RNC-McCain fundraising effort are individuals who raised at least $200,000 for President George W. Bush's re-election campaign in 2004, FEC records show. The donors: Richard Farmer, founder of Cincinnati-based Cintas Corp., his relatives and other executives contributed $44,600; William DeWitt, co-chairman of Cincinnati-based investment firm Reynolds, DeWitt & Co. and Katherine DeWitt contributed $25,000 apiece.

Also, Facundo Bacardi, chairman of Bermuda-based Bacardi Ltd., and Elizabeth Bacardi each gave $40,800 to the RNC. Andrew Puzder, president of Carpinteria, California-based CKE Restaurants Inc., contributed $43,100.

The National Rifle Association has spent $3.9 million in support of McCain, and the American Issues Project, which supports gun rights and opposes abortion, has contributed $2.9 million.

As for the Democrats, FEC records show that organized labor has spent $31.4 million through Oct. 14 for Obama's candidacy. The Service Employees International Union has spent $23.3 million. Moveon.org, which opposes the Iraq War, spent $5 million.

``The reason the RNC has so much money to spend is thanks to the lobbyists and special interests who want John McCain to win,'' Democratic National Committee spokeswoman Karen Finney said. ``We hope to overcome that with Obama's vision to change Washington and strong grassroots support all over the country.''

Battleground States

Obama's superior resources are helping him compete in traditionally Republican states.

In North Carolina, he spent $1.2 million on TV ads between Sept. 28 and Oct. 4, compared with $148,000 for McCain, according to a study by the University of Wisconsin. In Virginia, Obama spent $2.1 million to McCain's $547,000, the report said.

In the battleground states of Florida, Ohio, Pennsylvania and Michigan, Obama outspent McCain 3-1, TVB Research Director Jack Poor said. McCain announced Oct. 3 that he would no longer compete in Michigan.

The parties can spend $19 million in coordination with their presidential nominees and an unlimited amount independently. They can also share the cost of so-called hybrid ads that tout both the nominee and the party.

Between Sept. 6-13, for example, 57 percent of McCain's $7.8 million in TV advertising was run in a cost-sharing arrangement with the RNC, the Wisconsin study found. Obama paid the cost of his $7.8 million in ads out of his campaign treasury.

He is also raising money for the Democratic National Committee. Two Philadelphia fundraisers Oct. 10 netted more than $6 million for his campaign and the party.

Obama had $77.4 million in the bank as of Aug. 31 to $27 million for McCain, according to the latest available figures.

The RNC reported $76 million in the bank as of Aug. 31 compared with $17.5 million for its Democratic counterpart.