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August 2000 — The LNC’s Financial Situation

The National Party’s financial situation did not improve in August. For the month, the Party raised $327,000. It also spent $458,000, leaving it with $10,000 cash on hand. Net of cash on hand, the Party was further in the red at the end of August than it was at the end of July. It was also in debt to the Browne Campaign’s long-time associates and their firms, including $2,300 owed Michael Cloud for travel and $3,000 owed Web Commanders for Internet services.

Ballot access difficulties increased the burden on the National Party. In his January 20, 2001 LibertyWire, Willis reports that Pennsylvania cost an unexpected $68,000, Oklahoma cost an extra $20,000, and difficulties in Arizona cost $82,000. The December 2000 LNC Political Director’s report confirms these numbers and notes that total spending for Oklahoma was more than $130,000. Pennsylvania, Oklahoma, and Arizona cost an extra $170,000 that the National Party had to spend on ballot access rather than on advertising for Libertarian candidates.

In the end, Harry Browne was not on the Arizona Ballot at all. Following its expulsion from the National Party by the Libertarian National Committee, the Arizona Libertarian Party ran L. Neil Smith and Vin Suyprinowicz for President and Vice President. The Arizona situation is so complex that it merits its own Chapter.

The Party invested in Federal campaigns. The National Committee paid Browne’s $1000 filing fee in Kentucky, and paid $2200 for filing fees of our Louisiana candidates. Filing fees are sums of money that must be paid to state or local governments to put a candidate on the ballot. Louisiana is one of several states in which candidates must in part purchase ballot access via substantial cash payments to the State Government. The FEC refers to filing fees as ‘Ballot Access” costs, with exemptions from certain spending limits; FEC Ballot Access expenses do not include spending for, e.g., petitioners, that put the candidate on the ballot but which were not mandated by law as an expenditure.

For August 2000 only nine associates were paid, namely:
Jim Babka $ 81
Robert DeVoil $2,931
Robert Flohr $783
Ryan Goldfinger $980
Debra Greeson $2,244
Stuart Reges (phone, supplies, salary) $2,350
Steve Willis (phone, office, payroll) $5,946
Perry Willis (campaign management) $10,250
Stephanie Yanik (administrative services) $2,000
TOTAL $27,565

In addition, firms connected with long-time Browne associates received for
their labors:
New Media $4,000
Optopia $23,154
Web Commanders $10,000
TOTAL $37,154

Compensation to other parties included:

Polaris Productions $31,000
The Firm Multimedia $21,750
Hotel $19,780
Copy Right(videotapes) $19,000
Newman Comm (publicity) $11,668
Liam Works $10,000
Accumail (mailing) $8,493
Sea Breeze (travel) $6,752
Call Center (answering) $5,867
Action Marketing (phone calls) $4,000

As a share of total spending, payments to associates were about 12%, while payments to their firms took the total to 28% of spending. Advertising through The Firm Multimedia amounted to another 8% of funds raised.

The Hotel expense refers mostly to catering and refreshments, often matching fund-raising events (business attire requested) that the Browne campaign ran. Fundraising is a necessity for a political campaign. Events of this sort may reach libertarians who had not yet joined the Libertarian Party, but such events are not campaigning to reach the general public. Hotel charges may also have included putting up the candidate for the night. Locations to which these charges were paid in August include 2 Embassy Suites, 2 Hiltons, a Holiday Inn, 2 Marriotts, and two Radisson Hotels. Charges at a single hotel ranges from $470 up to $3186.

Telecommunications included payments to Bell Atlantic, Linx Communications, Novus Networks, Sprint, and Verizon. The candidate himself received $1271 for his travel and other expenses, and $10,000 to repay some of his loans to his campaign.