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.”

[pensacola88]

The Clinton campaign is far from dead. Financial problems are the type of problems that the Clintons continously face and solve. They have come out miraculously in the past smelling like a rose. Sometimes, I wonder if those cash-flow problems are real. Few of us can bounce back like the Clintons. They do have wealthy friends around the world.

[jockh]

Looks like Hillarys experience in dodging bullets in Bosnia will come in useful when she needs to duck and dive for cover when the debt collectors come calling !!!

Seriously though, she lent her campaign 5 million recently why cant she lend again enabling her to clear debts to hard working people who worked for her.
But if she did that, then there would be more calls for her to produce tax returns and she does not want the voters to see the millions her and Bill have been making from his Arab deals with dubious people.

[hawksprings]

Well well well.

I thought Hillary was for the ''little people.'' You know, the ones she''s stiffing now.
These people probably can''t feed their children because Hillary won''t pay them.

Come on Hillary. Pay the little guys so they can buy food for their kids.
DO IT FOR THE CHILDREN!!!!

[beehive21-2009]

Hillary looks very tired ,time to throw the hat ,girl, go to sleep.Gotta know when to fold em.

[oscarez]

Clinton knows its over. However, something could happen to Obama and solve her problem.

[hawksprings]

Come on Hillary! Pay the people their money!
How can run the country when you can''t run your own campaign?

Sell one of your brooms and pay them what you owe them!!
DO IT FOR THE CHILDREN!!

[rational_1]

Well it looks like she''s at least got the ''spend'' part of ''tax and spend'' figured out. Not too good at figuring out how to pay for the spending though. I think she''s looking at me and you as the golden goose should she get elected - the horror, the horror!.

[ddgabes]

All 3 candidates just plain STINK!!! Check out what these kids are doing to assist their parents during these difficult economic times as well as to show their displeasure with this election''s candidates:

http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&rd=1&item=360038024753&ssPageName=STRK:MESE:IT&ih=023

[kenbomc]

Posted by ccfsdca at 11:01 AM : Mar 31, 2008;

I see the FBI will be checking your profile. You are one of the dumbest sob''s on here.

[pepperp1]

the two political Partys are the problem in this country during Primary season they rig the race to crown weak puppets, not strong policy hard working policy candidates that this country needs, the puppet who may look their Part and gets their fringe extremes partisan to place before America just like the dolt Bush and the last eight years, was it Bush as puppet or his Party in Congress that did the damage to our country, answer both but the Congress could have stopped him.

If Dems put Obama out as their Party puppet John McCain will be elected President Period.

[hawksprings]

HUNDREDS of bills?
Hillary hasn''t been paying HUNDREDS of bills for MONTHS?!?!?!

Gosh, I wonder what would happen if I tried that?

[mocaleo-2]

CBS%u2019s support of OBAMA is scarier then FOX%u2019s support of Bush

THEY KICKED ME OFF FOR 2-MONTHS & NOW THEY CUT MOST MY POST

[mocaleo-2]

Let%u2019s start talking about campaign funding & spending reform!
CBS would die

These networks spend 90% of candidates the money

How much does Clinton owe CBS?

How much has her & Obama spent with CBS?

[mikeant50]

CBS%u2019s support of OBAMA is scarier then FOX%u2019s support of Bush

THEY KICKED ME OFF FOR 2-MONTHS & NOW THEY CUT MOST MY POST

Posted by mocaleo-2

------------------------------------------------------
Have you tried the Fox News Website? They seem to be campaigning for Hillary lately. The Clintons have given more interviews to Fox than John McCain.

[DCropp]

How can anyone presidential candidate get away with this?

I just read another story claiming Hillary''s campaign has unpaid employee health insurance bills dating back to 2007.

If Hillary treats her supporters like this, what is she going to do the 99.9% of Americans she has never met?

[blkpresident]

ddgabes,

In response to your assertion that ALL three candidates "stink": Well, perhaps you misspoke(a la "lil'' Hillary). Maybe what you meant to say was at least two stink.

[blkpresident]

Pensacola88,

You wrote,"few of us can bounce back like the Clintons" Well, after PA. votes next month I hope Lil'' Hillary bounces all the way back to her lonely kitchen stove in NY. It''s time to unleash the Obama shuffle on OLD man McCain.

[mocaleo-2]

I was an Edward supporter when he dropped out I could not handle the media support of OBAMA. (Obama was my 2nd to Edwards) I feel Obama is getting a free ride. As this goes on I find myself furious with old allies. (NBC, Chris Matthews, Russet & CNN & CBS) These guys are not good at covering the tracks they leave.

I can watch FOX for this type fair & balance

[smashwl7]

Have you tried the Fox News Website? They seem to be campaigning for Hillary lately. The Clintons have given more interviews to Fox than John McCain.


--------------------------------------------------------------------------------

Posted by mikeant50


Has anyone notice that if you give interviews or campaign on FOX News you are bound to loose your election bid. Maybe they should call it the death network. Network for Loosers, American misfits and want to be''s.

[stn_sage]

mocaleo-2 - If CBS kicked you off for 2-months and now is forced to trim your posts---I have to conclude it''s for good reason! CBS is one of the few posting sites that exercises EXTREME tolerance toward posters!
I haven''t seen all your posts, but some of them must be worse than those I''ve seen.

[whitepicks2]

Serves her right for lending Spitzer all her loose cash.

[smashwl7]

If all the networks realize that there ratings would go up when they are positive on Obama this race would be over. I hear Fox News ratings have droped thru the roof since the keep the Rev Wright story in the light. They need to fire there producer and Karl Rove, since he works for Fox now.

[ramos937]

I am a small businessman. A long time ago, I learned never ever to extend credit to a political candidate. With them, I work on a COD basis. On the other hand, now and then, I do find a candidate I do want to support. To that candidate, to a certain extent, I will contribute in-kind services.

Any businessman that does business with a political candidate other than this way is just asking for trouble.

[rowdytexan2]

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

[stn_sage]

Geez, let''s see. After the last three weeks or so of daily attack-dog style politics, the exagerations of experience, the death-defying entrance into Bosnia dodging sniper bullets, the race-baiting, and now we find out she''s ALSO fiscally irresponsible!

Yeah---her against McCain, that would be interesting! Would anybody bother to come out and vote!?
A better question, for WHOM? Which one?!

[smashwl7]

CBS does a great job they are the only ones with guts to take on the Hill, Bill team. No other netwok has the guts to do it. ABC, MSNBC and FOX are so scared of the Clinton back lash they will not stand up to them.

[aldon61]

Let''s summarize. She can''t pay her bills yet she wants to run our economy. She is supposed to be for the little people, yet these are the ones she is stiffing. This has been going on for months. Now then, does she have a conscience? This lady is coldly indiffernet to anybody or anything that is not to her best interests. She is absolutely dead last in this 3 horse race, and that is right where she belongs. Dishonest, liar, phony and poor business manager, just the qualifications the american people are looking for in their president..give me a break lady, GET OUT NOW!

[rowdytexan2]

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. And of course Obama found these two, and propagandized it. Good grief. He''s desperate!

[smashwl7]

Maybe Obama can give her a loan from his campaign money. Or maybe he pay her bills with the condition she gets out of the campaign.

[rowdytexan2]

Posted by smashwl7 at 11:59 AM : Mar 31, 2008

Actually CBS is days late, lol This has been out for two or three days.

[smashwl7]

Romeny used 40 million of his own money, maybe Hillary can step up with her own cash.

[smashwl7]

Can njot wait to see her taxes that is going to be real.

[jockh]

It''s hard to pay the bills when you''re dodging sniper fire!!!

[smashwl7]

I wonder if the people who are supporting her, are still going to donate money. Even though she is going to blow it or mis-spend it on pastries and food.

[smashwl7]

She has a lot of pant suits alot of differnt colors. She could buy some J. Craig or Slim Fast. She does have some junk in her trunk.

[jockh]

It''s hard to pay the bills when you''re dodging sniper fire!!!

Looks like Hillarys experience in dodging bullets in Bosnia will come in useful. She will need to make an evasive maneuver and run to the car when the debt collectors come calling !!!

[smashwl7]

They need to fast and quit eating so much that is were the money is going to Mc a D''s

[fl_vet]

The question is why Obama scared of competing in the primaries?

He dows not want Florida and Michigan to weigh in. He wants to shutdown the process.

It shows he is a weak general election candidate.

His racist, anti-american pastor will take down Obama in every primary starting Pennsylvania.

Of course, he does not want to compete because he knows he will lose now on.

[smashwl7]

That food bill has to cost some big bucks to those women that are always on the stage with her. They could save so money if they quit eating so much.

[fl_vet]

11.March 31st, 2008 9:13 am You missed a big one from Washington Post on Sunday:

Obama embellished or overstate about the Kennedy%u2019s role in helping his father go abroad to study:

%u201D Addressing civil rights activists in Selma, Ala., a year ago, Sen. Barack Obama traced his %u201Cvery existence%u201D to the generosity of the Kennedy family, which he said paid for his Kenyan father to travel to America on a student scholarship and thus meet his Kansan mother.

The Camelot connection has become part of the mythology surrounding Obama%u2019s bid for the Democratic presidential nomination. After Caroline Kennedy endorsed his candidacy in January, Newsweek commentator Jonathan Alter reported that she had been struck by the extraordinary way in which %u201Chistory replays itself%u201D and by how %u201Ctwo generations of two families %u2014 separated by distance, culture and wealth %u2014 can intersect in strange and wonderful ways.%u201D


http://www.washingtonpost.com/wp-dyn/content/article/20 08/03/29/AR2008032902031.html

%u2014 Posted by Elizabeth

[smashwl7]

Obama will count them as soon as she drops out, then they wil be counted.

[smashwl7]

He was not born when that happen someone told him the story. He did not duck sniper fire though that came from Hillary''s own mouth.

[jockh]

It''s hard to pay the bills when you''re dodging sniper fire!!!

Looks like Hillarys experience in dodging bullets in Bosnia will come in useful. She will need to make an evasive maneuver and run with her head down to the car when the debt collectors come calling !!!

[smashwl7]

I wonder if the people who are supporting her, are still going to donate money. Even though she is going to blow it or mis-spend it on pastries and food.

[whitepicks2]

Some of her bills tell the story (one-time expenses)

Enterprise Rent-A-Car - $171,675
Hertz - $46,319
Bellagio hotel - $25,478
A-Plus valet parking - $918
Donuts - $1433
Subway - $2500
Hyvee supermarket - $96,079

Keep feeding the hog. A fool and his money are soon parted.

[notopennshut]

Perhaps time to call it a day.

[sssnowman-2009]

If she cannot run her campaign finances, how will she be able to run the American economy? This concerns me more than her lying about Bosnia and Nafta. She has moved forward with a failed strategy, she has not been able to win caucuses where loyalty and passion are important so she has ignored them. She has told the people of Wisconsin, Minnesota, Missouri, Colorado, Virginia, Iowa, Georgia, Washington, Maine, Connecticut etc... that their states are not important and the only states that are important are the one''s she has won. She has ran out of money and has had to lend her campaign money which suggests she cannot balance a budget, and that borrow and spend may be her way to address our economy. She has been arrogant and has ignored her competition at her own expense, bad practice in a global economy, as we have poured billions into an ill conceived war, our competitors are pouring billions into infrastructure, education etc... costing us jobs and economic growth. She has attacked a fellow democrat to get ahead and has shown she will do anything legal or not, ethical or not to win, sounds a bit like the Bush administration.

The campaign she has run indicates her ability to lead, and frankly she has made a mess of it. Because of this and here mendacity, I do not believe she should be president.

[jockh]

It''s hard to pay the bills when you''re dodging sniper fire!!!

Looks like Hillarys experience in dodging bullets in Bosnia will come in useful. She will need to make an evasive maneuver and run with her head down to the car when the debt collectors come calling !!!
Judging by the size of her pant suits and the size of the other women on stage with her at rallies they are spending far too much on cakes and pastries. Just look at the breakdown on how much she has spent on donuts !!!

[mcvet]

Senator Clinton has waged a great champaign... she has excited Millions of new voters and created an excitement rarely seen in today''s politic''s but the time has come for her to accept the obvious. She can''t just go on running up debt and not paying her bills. It''s time to accept the will of the people and move on.

[docadams3]

Given the lack of executive experience of any of the candidates, managing their campaigns is probably the clearest indicator of who would be the better executive.