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after they abandoned their dreams of the White House. New research by Citizens for Responsibility and Ethics in Washington (CREW) found the campaigns of eight Republican presidential primary candidates continued to spend millions of dollars after their bids ended, using the money to pay for everything from consultants to private jets and hotel stays. To be sure, winding down a multistate campaign doesnt happen overnight and failed candidates do need to keep their operations running for a while. There are outstanding bills and debts to pay lawyers, accountants, fundraisers, marketing companies, and other vendors whose invoices can take months to trickle in. Some expenses, though, raise questions. The candidates reported spending hundreds of thousands of dollars on private jets, consulting, and even payments to family and other insiders after suspending their campaigns. For instance, former House Speaker Newt Gingrich (R-GA) spent $60,202 on travel, including $12,500 paid to a private jet company. Gov. Rick Perrys (R-TX) campaign paid $719 for a stay at the Hilton Miami in March, two months after he dropped out. He also spent nearly $7,400 on parking, $6,400 of which was spent in Austin, TX, where he serves as governor. Businessman Herman Cains campaign repaid him $400,000 towards outstanding loans and $99,300 for unitemized travel expenses. The campaign also paid $31,596 to Mr. Cains company, T.H.E. New Voice Inc., for more travel costs. Rep. Pauls campaign reported making more than $9,000 in salary payments to relatives including his daughter and grandchildren. Rep. Michele Bachmann (R-MN) paid nearly $80,000 to a consulting firm owned by her campaign manager. The campaigns collectively spent more than $15 million after the candidates dropped out, with 27 percent of that spending taking place more than two months after candidates suspended their campaigns. Mr. Cains campaign spent $4.9 million after he left the race, the largest amount of any of the candidates, while Texas Rep. Ron Paul (R-TX), who kept his diminished campaign alive through the Republican nominating convention in August, spent the least $792,566. Only two candidates, former Gov. Jon Huntsman, Jr. (R-UT) and former Gov. Tim Pawlenty (RMN) have reported shutting down their campaign committees for good. The other candidates collectively have nearly $2 million in cash on hand remaining in their campaign accounts and too many ways they can spend it.
$2,617,568
$2,898,821
$910,520
$878,624
WhenCandidatesSpenttheMoney
Within1monthofdropoutdate Morethan2monthsafterdropoutdate Between1and2monthsafterdropoutdate
27%
59% 14%
METHODOLOGY
CREW downloaded data directly from the Federal Election Commission (FEC) into Microsoft Excel to analyze the spending of all the Republican presidential candidates except Mitt Romney. CREW included information about debt, disbursements, and refunds for candidates who reported spending at least $5 million to the FEC: Rep. Michele Bachmann (R-MN), Herman Cain, former House Speaker Newt Gingrich (R-GA), former Gov. Jon Huntsman, Jr. (R-UT), Rep. Ron Paul (R-TX), former Gov. Tim Pawlenty (R-MN), Gov. Rick Perry (R-TX), and former Sen. Rick Santorum (R-PA). CREW relied upon news articles to establish the exact date the candidates publicly announced they were dropping out of the race, and studied disbursements from the day after the candidates suspended their campaigns through September 30, 2012. Numbers for cash on hand, debts, and total amount spent after suspension for each campaign are as of September 30, 2012, the date for which the most complete data was available. CREW relied on the campaigns self-reported descriptions of expenses. In some cases, when descriptions for top expenses or vendors varied only slightly, such as in the case of car rental and rental car, CREW combined them. CREW generally relied directly upon FEC records for information about campaign spending and fundraising, but when necessary, CREW supplemented those records with campaign finance data tracked by Political MoneyLine at www.politicalmoneyline.com. Frequently, FEC filings were inaccurate, incomplete, or unclear. CREW attempted to correct unmistakable errors, but otherwise relied on the campaigns accountings of their expenditures, contributions, debts, and cash balances.
1 2
Sarah Wheaton, Bachmann Says She Will Not Continue in the Race, New York Times, January 4, 2012. Bachmann for President, FEC Form 3P, 2012 October Quarterly Report, October 15, 2012. 3 Id. 4 Political MoneyLine, Expenditure Lookup, Bachmann for President, January 4, 2012-September 30, 2012. Because the FEC stopped making Rep. Bachmanns expenditures available in a downloadable format after she withdrew from the race, CREW used data tracked by Political MoneyLine to examine her campaign committee expenditures. 5 Id. 6 http://nahigianstrategies.com/?page_id=153. 7 Because the FEC stopped making Rep. Bachmanns expenditures available in a downloadable format after she withdrew from the race, CREW used data tracked by Political MoneyLine to analyze refunds subsequently issued by her campaign committee.
Campaign Management $38,469 E-mail Fundraising Website/Database Services Grassroots Coordinating $27,408 $20,983 $19,970
John L Productions (Transportation) $49,804 American Direct, Inc. (Direct Mail Services) $49,637 Robert Watkins & Company (Accounting Services) $48,511 Patton Boggs, LLP (Legal Services) 3 AM Communications (Telephone Calls) O'Donnell & Associates, Ltd. (Communications Consulting) Goodman & O'Brien, P.C. (Legal Services)
$20,000 $17,972 $17,080 $15,509
Post-Dropout Spending
Within 1 month of Rep. Bachmann's dropout date Between 1 and 2 months of Rep. Bachmann's dropout date More than 2 months after Rep. Bachmann's dropout date
34%
61% 5%
1 2
Susan Saulny, A Defiant Herman Cain Suspends His Bid for Presidency, New York Times, December 3, 2011. Friends of Herman Cain Inc., FEC Form 3P, 2012 October Quarterly Report, October 15, 2012. 3 Id. 4 Id.; Friends of Herman Cain Inc., FEC Form 3P, 2011 Year-End Report, Amended, April 13, 2012; Friends of Herman Cain Inc., FEC Form 3P, 2012 April Quarterly Report, April 13, 2012; Friends of Herman Cain Inc., FEC Form 3P, 2012 July Quarterly Report, July 13, 2012. 5 Id.; Friends of Herman Cain Inc., FEC Form 3P, 2011 Year-End Report, Amended, April 13, 2012; Friends of Herman Cain Inc., FEC Form 3P, 2012 April Quarterly Report, April 13, 2012; Friends of Herman Cain Inc., FEC Form 3P, 2012 October Quarterly Report, October 15, 2012. 6 Lindsey Boerma, Herman Cains Campaign Paid His Company to Buy His Books, CBS News, October 18, 2011.
$705,889 $483,478 $436,915 $400,000 $290,438 $268,163 $210,956 $189,044 $181,656 $132,767
PostDropoutSpending
Within1monthofMr.Cain'sdropoutdate Between1and2monthsafterMr.Cain'sdropoutdate Morethan2monthsafterMr.Cain'sdropoutdate 2%
17%
81%
1 2
Brian Montopoly, Newt Gingrich Suspends Presidential Campaign, CBS News, May 2, 2012. NEWT 2012, FEC Form 3P, 2012 October Quarterly Report, October 15, 2012. 3 Id. 4 Id.; NEWT 2012, FEC Form 3P, 2012 June Monthly Report, June 20, 2012; NEWT 2012, FEC Form 3P, 2012 July Monthly Report, July 20, 2012; NEWT 2012, FEC Form 3P, 2012 October Quarterly Report, October 15, 2012. 5 Id.; NEWT 2012, FEC Form 3P, 2012 June Monthly Report, June 20, 2012; NEWT 2012, FEC Form 3P, 2012 July Monthly Report, July 20, 2012; NEWT 2012, FEC Form 3P, 2012 October Quarterly Report, October 15, 2012.
10
11
Post-Dropout Spending
Within 1 month of Speaker Gingrich's dropout date Between 1 and 2 months after Speaker Gingrich's dropout date More than 2 months after Speaker Gingrich's dropout date
24%
43%
33%
12
1 2
CNN Wire Staff, Huntsman Drops Out, Backs Romney, CNN, January 16, 2012. Jon Huntsman for President Inc., FEC Form 3P, 2012 October Quarterly Report, October 15, 2012. Gov. Huntsman terminated his campaign committee on November 1, 2012. See Jon Huntsman For President Inc., FEC Form 3P, 2012 Termination Report, November 1, 2012. 3 Jon Huntsman for President Inc., FEC Form 3P, 2012 October Quarterly Report, October 15, 2012. 4 Id.; Jon Huntsman for President Inc., FEC Form 3P, 2012 February Monthly Report, Amended, July 30, 2012; Jon Huntsman for President Inc., FEC Form 3P, 2012 April Quarterly Report, April 15, 2012; Jon Huntsman for President Inc., FEC Form 3P, 2012 July Quarterly Report, July 13, 2012. 5 Id.; Jon Huntsman for President Inc., FEC Form 3P, 2012 February Monthly Report, Amended, July 30, 2012; Jon Huntsman for President Inc., FEC Form 3P, 2012 April Quarterly Report, April 15, 2012; Jon Huntsman for President Inc., FEC Form 3P, 2012 October Quarterly Report, October 15, 2012. 6 Jon Huntsman For President Inc., FEC Form 3P, 2012 Termination Report, November 1, 2012; Rachel Weiner, Huntsman Forgives Himself $5.1 Million in Loans, Washington Post, November 1, 2012. 7 Id.; Jon Huntsman For President Inc., FEC Form 3P, 2012 Termination Report, November 1, 2012.
13
14
Post-Dropout Spending
Within 1 month of Gov. Huntsman's dropout date Between 1 and 2 months after Gov. Huntsman's dropout date More than 2 months after Gov. Huntsman's dropout date
37%
59%
4%
15
16
1 2
Dave Levinthal, Ron Paul Campaigns Busy August, Politico, September 20, 2012. Ron Paul 2012 Presidential Campaign Committee Inc., FEC Form 3P, 2012 October Monthly Report, October 18, 2012. 3 Id. 4 Id.; Ron Paul 2012 Presidential Campaign Committee Inc., FEC Form 3P, 2012 September Monthly Report, September 20, 2012. 5 Id.; Ron Paul 2012 Presidential Campaign Committee Inc., FEC Form 3P, 2012 October Monthly Report, October 18, 2012. 6 Jessica Dickler, GOP Cribs: Where the Candidates Live, CNN, January 13, 2012. 7 For more information, see Family Affair, available at http://www.citizensforethics.org/pages/family-affair-reportreveals-nepotism-abuse-in-congress; http://www.uhcougars.com/sports/m-basebl/mtt/michael_pyeatt_771630.html; Jennifer Jacobs, Carol Paul Talks About Why Her Husband Was Late to the 07 Straw Poll, Des Moines Register, June 13, 2011.
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18
1 2
Jonathan Martin and Marin Cogan, Tim Pawlenty Drops Out of Presidential Race, Politico, August 14, 2011. Pawlenty for President, FEC Form 3P, 2012 Termination Report, April 10, 2012. Gov. Pawlenty terminated his campaign committee on April 10, 2012. 3 Id. 4 Id.; Pawlenty for President, FEC Form 3P, 2011 Year End Report, January 31, 2012; Pawlenty for President, FEC Form 3P, 2012 February Monthly Report, February 20, 2012; Pawlenty for President, FEC Form 3P, 2012 March Monthly Report, March 20, 2012. 5 Id.; Pawlenty for President, FEC Form 3P, 2011 Year End Report, January 31, 2012; Pawlenty for President, FEC Form 3P, 2012 February Monthly Report, February 20, 2012; Pawlenty for President, FEC Form 3P, 2012 Termination Report, April 10, 2012. 6 Ben Smith, The Ayers Campaign, Politico, April 11, 2011; Mike Morris and Jim Tharpe, Perdues Campaign Manager Charged with DUI, Atlanta Journal-Constitution, October 28, 2006. 7 Alexander Burns, Sarah Huckabee Sanders Joins Tim Pawlenty, Politico, July 5, 2011.
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20
Post-Dropout Spending
Within 1 month of Gov. Pawlenty's dropout date Between 1 and 2 months after Gov. Pawlenty's dropout date More than 2 months after Gov. Pawlenty's dropout date
33% 46%
21%
21
Eric Wemple, Rick Perry Drops Out of Race, Contradicting Credulous Creditors, Washington Post, January 19, 2012; Stephanie Condon, Rick Perry Drops His Presidential Bid, CBS News, January 19, 2012. 2 RickPerry.Org Inc, FEC Form 3P, 2012 October Quarterly Report, October 14, 2012. 3 Id. 4 Id.; RickPerry.Org Inc, FEC Form 3P, 2012 February Monthly Report Amended, March 20, 2012; RickPerry.Org Inc, FEC Form 3P, 2012 March Monthly Report, March 20, 2012; RickPerry.Org Inc, FEC Form 3P, 2012 April Monthly Report, Amended, July 7, 2012; RickPerry.Org Inc, FEC Form 3P, 2012 May Monthly Report, May 18, 2012; Rick Perry.Org Inc, FEC Form 3P, July Quarterly Report, July 13, 2012. 5 Id.; RickPerry.Org Inc, FEC Form 3P, 2012 February Monthly Report Amended, March 20, 2012; RickPerry.Org Inc, FEC Form 3P, 2012 March Monthly Report, March 20, 2012; RickPerry.Org Inc, FEC Form 3P, 2012 April Monthly Report, Amended, July 7, 2012; RickPerry.Org Inc, FEC Form 3P, 2012 May Monthly Report, May 18, 2012; RickPerry.Org Inc, FEC Form 3P, 2012 October Quarterly Report, October 14, 2012. 6 Luke Johnson, Anita Perry, Rick Perrys Wife, Blames Obama Administration for Son Losing Job, Huffington Post, October 14, 2011.
22
23
Post-Dropout Spending
Within 1 month of Gov. Perry's dropout date Between 1 and 2 months after Gov. Perry's dropout date More than 2 months after Gov. Perry's dropout date
10% 6%
84%
24
1 2
Tom Cohen, Santorum Suspends Campaign, Clearing Romneys Path, CNN, April 10, 2012. Rick Santorum for President Inc., FEC Form 3P, 2012 October Quarterly Report, October 15, 2012. 3 Id. 4 Id.; Rick Santorum for President Inc., FEC Form 3P, 2012 May Monthly Report, May 20, 2012; Rick Santorum for President Inc., FEC Form 3P, 2012 June Monthly Report, June 20, 2012; Rick Santorum for President Inc., FEC Form 3P, 2012 July Monthly Report, July 20, 2012; Rick Santorum for President Inc., FEC Form 3P, 2012 August Monthly Report, August 20, 2012. 5 Id.; Rick Santorum for President Inc., FEC Form 3P, 2012 May Monthly Report, May 20, 2012; Rick Santorum for President Inc., FEC Form 3P, 2012 June Monthly Report, June 20, 2012; Rick Santorum for President Inc., FEC Form 3P, 2012 July Monthly Report, July 20, 2012; Rick Santorum for President Inc., FEC Form 3P, 2012 October Quarterly Report, October 15, 2012.
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HSP Direct (Direct Mail, Creative Fees) $108,979 Oxford Communications LLC (Telemarketing) $98,655 Victory Phones (Telephone Communications) $89,211 The Prosper Group (Telecommunications) $82,664 Nova List (Lists/Data Services) $79,993
26
Post-Dropout Spending
Within 1 month of Sen. Santorum's dropout date Between 1 and 2 months after Sen. Santorum's dropout date More than 2 months after Sen. Santorum's dropout date
34% 44%
22%
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