Cash-Strapped Clinton Fails To Pay Bills

Politico: Campaigns Putting Off Hundreds Of Bills To Pay For Media Buys

(The Politico)  This story was written by Kenneth P. Vogel.

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Hillary Rodham Clinton’s cash-strapped presidential campaign has been putting off paying hundreds of bills for months - freeing up cash for critical media buys but also earning the campaign a reputation as something of a deadbeat in some small-business circles.

A pair of Ohio companies owed more than $25,000 by Clinton for staging events for her campaign are warning others in the tight-knit event production community - and anyone else who will listen - to get their cash upfront when doing business with her. Her campaign, say representatives of the two companies, has stopped returning phone calls and e-mails seeking payment of outstanding invoices. One even got no response from a certified letter.

Their cautionary tales, combined with published reports about similar difficulties faced by a New Hampshire landlord, an Iowa office cleaner and a New York caterer, highlight a less-obvious impact of Clinton’s inability to keep up with the staggering fundraising pace set by her opponent for the Democratic presidential nomination, Illinois Sen. Barack Obama.

Clinton's campaign did not respond to recent, specific questions about its transactions with vendors. But Clinton spokesman Jay Carson pointed on Saturday to an earlier statement the campaign issued to Politico, asserting: "The campaign pays its bills regularly and in the normal course of business, and pays all of its bills."

Just like with other businesses, it’s common for campaigns to carry unpaid bills from month to month, but in Clinton’s case, it also could serve a strategic purpose.

The New York senator’s presidential campaign ended February with $33 million in the bank, according to a report filed last week with the Federal Election Commission, but only $11 million of that can be spent on her battle with Obama.

The rest can be spent only in the general election, if she makes it that far, and must be returned if she doesn’t. If she had paid off the $8.7 million in unpaid bills she reported as debt and had not loaned her campaign $5 million, she would have been nearly $3 million in the red at the end of February.

By contrast, if you subtract Obama’s $625,000 in debts and his general-election-only money from his total cash on hand at the end of last month, he’d still be left with $31 million.

The presidential campaign of presumptive Republican nominee Arizona Sen. John McCain reported $4.3 million in debt at the end of February, but only $1.3 million of that was in the form of unpaid bills to a dozen vendors. The rest was a bank loan, which the campaign says it paid off last week.

It’s not just the size of Clinton’s debts that’s noteworthy. It’s also that her unpaid bills extend beyond the realm of high-priced consultants who typically let bills slide as part of the cost of doing business with powerful clientele whose success is linked to their own.

Some of Clinton’s biggest debts are to pollster and chief strategist Mark Penn, who’s owed $2.5 million; direct mail company MSHC Partners, which is owed $807,000; phone-banking firm Spoken Hub, which is waiting for $771,000; and ad maker Mandy Grunwald, who’s owed $467,000.

Clinton also reported debts more than one month old to a slew of apolitical businesses and organizations, large and small, in the states through which this historically expensive Democratic primary campaign has raged.

She owed Iowa’s Sioux City Art Center Board of Trustees $3,500 for catering and venue costs, New Hampshire’s Winnacunnet Cooperative School District $4,400 in event costs, Qwest $24,000 for phone service, various branches of the Iowa-based supermarket chain Hy-Vee $15,000 for food, beverages and catering, and $7,700 to Ohio and Massachusettsbranches of the theatrical stage employees’ union, for equipment costs.

In fact, about a third of the nearly 700 individual debts Clinton reported at the end of February were for various types of “event expenses,” including $319,000 for catering and venue costs, $420,000 for equipment, $11,000 for photography and $9,000 for security.

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The Money Race
Check out February tallies for Clinton, Obama and McCain, including how much they've raised and spent since the campaign began.

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Event production is important to big-time presidential campaigns. It shapes how candidates look and sound, not just to the thousands of people who turn out to campaign speeches and rallies but also to the millions who catch snippets of them on television.

And word is getting around that Clinton’s campaign does not promptly pay those who labor to make her events look good, said an employee of the event production company Forty Two of Youngstown, Ohio.

“I feel insulted by the way that the campaign treated this company and treated us personally,” said the employee, who did not want to be named talking about a client.

The Clinton campaign paid the company $16,500 to set up a stage, press riser, sound system and backdrops at a Youngstown high school last month for a raucous union rally, where an aggressive Clinton stump speech drew thunderous applause. But the Clinton campaign has yet to pay Forty Two for two other February events, and the employee said the campaign has stopped returning phone calls, e-mails and didn’t respond to a certified letter.

“We worked very hard to put together these events on a moment’s notice and do absolutely everything to a ‘t’ to make it look perfect on television for her and for her campaign,” said the employee. “Sen. Clinton talks about helping working families, people in unions and small businesses. But when it comes down to actually doing something that shows that she can back up her words with action, she fails.”

Forty Two also has done events for Obama’s campaign, which has paid its bills promptly, according to the employee. FEC records show Obama’s campaign paid the company $18,500.

Show Tyme Exhibits, another Youngstown event production company, has produced political events for years and had never had problems getting paid before Clinton, according to owner Jim Phillips.

He said he’s still waiting for a payment for setting up the sound system and stage for Clinton’s February tour of a General Motors plant in Lordstown, Ohio.

“It was only $607, but I’m a small guy; I could use that,” said Phillips, adding, “Everyone I can tell, I do tell about it. You tell somebody something bad about somebody, they tell 10 other people.”

Both Phillips and the Forty Two employee said they voted for Clinton in Ohio’s March 4 primary, which she won handily, but regret their votes and are reluctant to work for her campaign again.

Their sentiments aren’t universal in the event production world, though.

At the end of January, Clinton owed $38,000 to ACS Sound and Lighting of Columbia, S.C. But the company was paid in full last month and is planning to do events for Clinton in other states, according to manager Troy Gwin.

“We don’t have any problem with them,” he said. “I’d continue to do business after the primaries if she is the nominee. I would love to.”

And Tony Galarza, director of the Missoula, Mont., branch of a national event production company, remained committed to staging an April 6 Clinton fundraising brunch at a local hotel even after a colleague in his company e-mailed a list of Clinton’s campaign debts.

Galarza said he’s confident Clinton will pay his company but admitted he was surprised to see so many event production companies among the campaign’s creditors.

“Once I looked at those numbes, I realized how important to our economy nationally these elections are,” he said. “Just the sheer numbers listed there were immense.”

[b-easy63]

Harry Truman had the "right stuff", and it seems to us Mrs. Clinton learned a lot from him, rather than from a character in a movie.

Posted by tucanofulano at 06:41 PM : Mar 31, 2008


Unfortunately, Hillary Clinton is a liar and a dead beat also--things Truman certainly was not--nor are they traits prized by most Americans. Most of us still have enough of a value system and personal integrity and honor not to forget those faults or excuse them, while casting our vote.

[b-easy63]

I don''''t know who put this out but $600.000 on this
canpaign is not alot

Posted by popstom1 at 12:03 AM : Apr 01, 2008

not a lot to who? To Hillary or to the person she owes the money to? 650.00 could be a business''s light bill or another unpaid bill while they wait for her to finally pay up.

[b-easy63]

LMAO! Yeah, Obama is running the Titanic II. Hillary is running the Britannica II come this November. McCain is safe on the USS Ronald Reagan.

Posted by thgdriver at 04:32 PM : Mar 31, 2008


Unfortunately, McCain will run aground in America forgetting that the Atlantic does not still cut through the heart of America--like it did when he was a boy in Prehistoric Pangea.

[b-easy63]

it''''s 3am and barack obama answers the phone. he groans to discover that popeye''''s chicken and biscuits has run out of the watermelon fresca. suddenly, a scream from his daughter''''s bedroom. "DIDDY! DIDDY! THERE''''S A TYPICAL WHITE PERSON UNDER MY BED!" but barack knows what to do. he speed dials rev wright for spiritual guidance while michelle adds to her bedside list of the things that make her ashamed to be an american.... tomorrow: 4AM in the obama white house. don''''t miss it!

Posted by ccfsdca at 03:51 PM : Mar 31, 2008


Racist? LOL. Meanwhile..in the Clinton whitehouse--Hillary can''t answer the phone---because it might be one of the thousands of bill collectors wanting payment for the debt she has racked up since being President and rarely paying her bills.

[b-easy63]

Not to worry Clinton people.She''''s been saved.I just heard it on the TV.All those jelly donuts are paying off.Goodyear has hired her,and they''''ve made her a silver pantsuit with their logo on the sides.

Posted by jesterbelle at 03:06 PM : Mar 31, 2008

and with all her own hot air--she does not need any helium from them to stay up in the air!! good one!! rotflmao

[b-easy63]

She''''s already helped clean up on Bush deficit, I''''d certainly trust her and her support group with another.

Posted by RowdyTExan2 at 01:43 PM : Mar 31, 2008

Hillary helped to clean up the Bush deficit? pray tell? How? And what amount did it decrease by? Try a different lie, girl. That deficit is one of the many reasons America''s economy is in the toilet, and to that, Hillary can take credit for secret NAFTA meetings and lying about them and for proposing multi trillion dollar programs so the entire country can join her in deadbeat land.

[b-easy63]

Posted by RowdyTexan2 at 11:59 AM : Mar 31, 2008


Actually, I''''''''d have to have more details on this spin. Events centers notoriously pad their bills with stuff you didn''''''''t agree with in the first place and it takes awhile to weed it out."
Posted by RowdyTexan2

Come on Rowdy.
She hasn''''t paid HUNDREDS of bills for MONTHS.
They can''''t all be padding their bills.
How long does it take to investigate the bill and see if it''''s padded?

Of course, Hillary is the one who wouldn''''t even leave a tip for a waitress until it was reported in the news.
Posted by hawksprings at 12:59 PM : Mar 31, 2008

LOL. Why bother with Rowdy? This person claimed Hillary really DID have to run from the sniper fire in Bosnia--AFTER the video came out disproving Hillary and Hillary admitted she misspoke.

it is like those who support the WMD and Bush--some people, once committed--no know way of extricating themselves from their misplaced loyalties. Maybe her finally getting the boot from the race, could help Rowdy and those of her ilk. LMAO

[b-easy63]

Obama camp getting depserate putting this kinda krap out. He knows he can''''t win if she goes to convention.

Posted by RowdyTexan2 at 11:59 AM : Mar 31, 2008

LOL. Yes of course you imply the Obama camp FORCED Hillary not to pay her bills then had the stiffed creditors complain about it? Why not go all out? Obama is also responsible for Hillary not having real sniper fire in Bosnia, for lying about her true involvement in the Ireland peace negotiations and last but not least, damnnnn Obama and his camp for daring to print Hillary supported NAFTA when her pals said she did not but her business schedules as first lady PROVE that in public she did. So..does Hillary do anything on her own without Obama--why yes--Hillary LIES very well by herself.

So let''s see--a nasty campaigner, who lies a lot and is a deadbeat. Yep--sounds like Bush. Just what we need right now, a continuation of the policies this time from the Dem camp--so they can no longer point their fingers at Bush--if they install the Clinton clusterfvck as the new CIC dynamic, dead beat duo. LMAO

[nkgilb]

Hilary LIAR Clinton will run down the country like she is running down her campaign.

[b-easy63]

What a bunch of idiots. Like they won''''t get their money. Give it a rest.

Posted by beader59 at 12:59 PM : Apr 01, 2008

Let''s see.. the Iowa contest was in January--like everyone can just wait to pay all of the bills they owe and ignore their debts-because Clinton is ignoring hers. Guess, she (and you) will be saying the same thing if she was to run America--just run up the tab and tell the rest of the world to "give it a rest" As if everyone''s bills can wait for when she''s ready to pay them.

[b-easy63]

And THIS is exactly how Hillary plans to run America--INTO THE GROUND owing everyone and simply claiming that we are "good for it" referring to repayment of the money.

Anybody see the proposal she has made to Pennsylvania to keep jobs there? to spend MORE billions just like with her UHC that we don''t have?


Know what happens when the American government floats or loans money to people it does not have? They BORROW the money. Know why that is bad? Because we don''t have a monetary instrument behind the money--we pledge our future earnings as capital..this means we are betting on the robustness of an economy that is in the toilet.

So when we do that...our INFLATION goes UP, UP UP and the value of our dollar gets lower and lower and lower. This means we pay a LOT more for everything from food to gas to services and our dollar buys less.

People try to say this is good, because it makes exporting easier--except we operate w/ a HUGE trade deficit, meaning people don''t import as much from us as they sell TO us. Which means we still pay more and more, and more while making less.

so Clinton''s philosophy is to be like Wimpy from Popeye and will "Gladly pay the world Tuesday" for mooching burgers today. Because either she tells whoppers or just wants to buy them--but either way--America cannot afford this person.

[latinovoter1]

ATTENTION VENDORS OF UPCOMING PRIMARIES - GET CASH UP FRONT IF THE CLINTON CAMPAIGN REQUESTS CATERING, STAGING, LODGING OR ADVERTISING NEEDS. PROTECT YOURSELF - ESPECIALLY IN HARD ECONOMIC TIMES LIKE THIS. DONT OFFER TERMS - YOU WILL BE STIFFED!

[aka3994]

I am truly baffled by this situation. I am an Obama supporter, but I genuinely expected the Clinton campaign to have been run much better than this. My husband thinks this is a perfect example of why she is not the best person to run the country and a good example of why Obama is. While I''m not going to make the same comparison, it certainly does at least beg the question of what in the world was she thinking with this campaign? It''s been horribly mismanaged from top to bottom...Was she just assuming she would win early and so there was no need to save money for later?

[beader59]

What a bunch of idiots. Like they won''t get their money. Give it a rest.

[wardoglrs]

Ron Paul has a balance budget. He is the only true
canidate running. This is the guy you want in the white house. 100% vote for the people. Never giving in to the 535. Always fighting for us through out his polictical life. Wake up to Ron Paul, Our last best hope

[vmcneal2]

Hmmm. If she can''t manage her own campaign money what is she gonna do with our tax dollars? It seems that Obama knows how to budget and pay his bills on time.

[april0119]

This is very significant. Once again it shows what a hypocrite HRC is. A candidate for the people? Which people - her slick husband and her power hungry self? Talk about win at all cost.

[jgunther7]

Hillary doesn%u2019t pay her bills, a deadbeat. If she can''t run a political campaign, she couldn''t run a country. All his talk about she is ready to lie on day one, and has international experience in Bosnia and Ireland only indicates she is not qualified. She has not paid Aetna Insurance for her employees in 2 months yet she will garnish your pay to make sure you they do while CareFirst BlueCross BlueShield still hasn''t been paid. Is this the real Hillary Clinton health care plan?

[craigh9]

There is one basic rule in politics - MONEY WINS, issues mean little, background/experience/trustworthiness, etc. mean very little. If you can raise cash you will win.
Obama leads in pledged delegates, popular vote, and has won the most primaries - but the fact he can print money is the reason he will be the democratic nominee.

[jack3213]

BIG FAT LOSER