Hotline: Democratic National Committee Takes Out $5-10M Loan for DSCC

[DeepModem Mom]

DNC Takes Out Loan For DSCC

The DSCC's optimism about winning the Senate is apparently contagious as the DNC is going to pony up an extra $5-10M for the Senate committee, according to sources familiar with the previously reported arrangement between the two campaign orgs.

While the DNC doesn't have $10M to just toss around to another campaign committee, the DNC apparently has decided to go into debt to come up with the extra cash DSCC Chair Chuck Schumer has been pleading for from DNC Chair Howard Dean. The actual amount of the loan the DNC is taking out is not known as the committee holds out hope they can raise nearly everything they need before the election. But a line of credit has been opened.

The money is not designated for specific Senate races, however, sources tell us that two races in particular were used as leverage in negotiations between the DSCC and the DNC. Those two races: New Jersey and Virginia. Apparently the extra DNC money will help soften the financial blow the DSCC was taking by incurring the extra cost of saving Sen. Bob Menendez from the challenge of Republican Tom Kean Jr. as well also trying to target Virginia. New Jersey and Virginia sport three of the most expensive media markets in the country (NYC, Philly and DC). In addition, TN was also a factor in the DNC-DSCC discussions as the investment the DSCC is making is possibly more than they expected.

A national party committee taking out a loan toward the end of an election cycle is not unusual, particularly on the Democratic side of the aisle. In '04, the DCCC took out a loan in an attempt to save the Texas Democratic House incumbents. In the end, four of those five Texas Democratic incumbents lost.

There has been some speculation (driven a bit by Democratic pundits like James Carville) that the DCCC might take out another loan this cycle in order to spend money on some of these new House seats that have come into play over the last few weeks....

http://hotlineblog.nationaljournal.com/archives/2006/10/dnc_finds_more.html

[bleever]

1. I want two houses of Congress.

I don't want revenge.

I just want a human steering instead of a strutting atavism.

And remember: they've already taken out loans (on the taxpayers' behalf) to win.

[w4rma]

3. I want justice. (nt)

[Justice]

9. me too - hence my name!

when I signed up, that was all I could think of, so I used it as my name.

[RamboLiberal]

2. I just made a mental note to myself to contribute to DNC

my little pittance every payday after the election so this can be paid back.

[madfloridian]

4. You really sincerely need to read this....the money being sat on..

by candidates unopposed.

http://journals.democraticunderground.com/madfloridian/441

It will give a different picture.

[Earth_First]

5. Not surprising...

Hillary is sitting on top of $47,158,899 currently. Even HALF of that amount donated to picking up seats that are in Democratic contention would be commendable.

This situation, however, is disgusting. I'm so fed up with politics.

[Le Taz Hot]

10. Are you trying to imply

that "Hil" is hording money for her own interests and ignoring the needs of the Democratic Party? Surely you jest. :sarcasm:

[Lasher]

8. Good scoop, madfloridian

Candidates can legally give COH to the DSCC or DNC, but I'm wondering if they are allowed to retain it from one election cycle to the next. I was thinking they can not, and must spend it all now. Do you know the answer?

[mhatrw]

11. I recommend that everyone should read your thread, madfloridian.

[durrrty libby]

12. I wish they would throw some bucks at Tennessee

I would love love love to see the dems take that

:loveya: :loveya:

[Olney Blue]

6. It's time to do what it takes to win. I hope these unopposed people

sitting on money will help out. If not, BORROW away.

[Lasher]

7. Good move, the Senate races should be our first priority

Specifically, this money should go to the Senate races in TN, MO, NJ, & VA - in that order.

Of course I would like for us to pick up more House seats but we're going to win a majority there without having to invest more in those races. We currently have a razor-thin advantage in our quest to gain a Senate majority.