In the days before Hillary Clinton launched an unprecedented big-money fundraising vehicle with state parties last summer, she vowed “to rebuild our party<http://articles.philly.com/2015-08-29/news/66006747_1_o-malley-democratic-party-party-leaders> from the ground up,” because she proclaimed “when state parties are strong, we win.”
But less than 1 percent of the $61 million raised by that effort has stayed in the state parties’ coffers, according to a POLITICO analysis of the latest Federal Election Commission filings.
The venture, the Hillary Victory Fund, is a so-called joint fundraising committee comprised of Clinton’s presidential campaign, the Democratic National Committee and 32 state party committees. The set-up allows Clinton to solicit checks of $350,000 or more from her super-rich supporters at extravagant fundraisers including a dinner at George Clooney’s house<http://www.politico.com/story/2016/03/hillary-clinton-george-clooney-fundraiser-221207> and at a concert at Radio City Music Hall<http://abcnews.go.com/Politics/katy-perry-elton-john-perform-hillary-clinton-fundraiser/story?id=37359679> featuring Katy Perry and Elton John.
The victory fund has transferred $3.8 million to the state parties, but almost all of that cash ($3.3 million, or 88 percent) was quickly transferred to the DNC usually within a day or two by the Clinton staffer who runs the committee, POLITICO’s analysis of the FEC records found.
By contrast, the victory fund has transferred $15.4 million to Clinton’s campaign and $5.7 million to the DNC. And most of the $23.3 spent directly by the victory fund has gone towards expenses that appear to have directly benefitted Clinton’s campaign, including $2.8 million for “salary and overhead” and $8.6 million for web advertising that mostly looks indistinguishable from Clinton campaign ads and that has helped Clinton build a network of small donors who will be critical in a general election expected to cost each side well in excess of $1 billion.
The arrangement has drawn protests from campaign finance reformers and allies of Clinton’s Democratic rival Bernie Sanders. They see it as a circumvention of campaign contribution limits by a national party apparatus intent on doing whatever it takes to help Clinton win the nomination and then the White House.
But it is perhaps more notable that the arrangement has prompted concerns among some participating state party officials and their allies. They grumble privately that Clinton is merely using them to subsidize her own operation, while her allies overstate her support for their parties and knock Sanders for not doing enough to help the party.
“It’s a one-sided benefit,” said an official with one participating state party official. The official, like those with several other state parties declined to talk about the arrangement on the record for fear of drawing the ire of the DNC and the campaign of the party’s likely nominee.
In fact, the DNC, which has pushed back aggressively on charges that it is boosting Clinton at the expense of other Democrats, has advised state party officials on how to answer media inquiries about the arrangement, multiple sources familiar with the interactions told POLITICO.
“The DNC has given us some guidance on what they’re saying, but it’s not clear what we should be saying,” said the official. “I don’t think anyone wants to get crosswise with the national party because we do need their resources. But everyone who entered into these agreements was doing it because they were asked to, not because there are immediately clear benefits.”
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