The state Republican Party’s financial problems grew more dire in the final months of 2015, leaving the dominant political force in Georgia mired in hundreds of thousands of dollars in debt.
The Georgia GOP filed an end-of-the-year report showing it had $11,403 cash on hand and was $231,000 in debt — a startling revelation for a party that commanded millions just a few election cycles ago.
Election victors are usually in prime position to refill their campaign coffers — and then some — after the votes. And Georgia Republicans have notched a string of victories, sweeping every statewide office in both 2010 and 2014 while retaining big majorities in the General Assembly.
But the state GOP has been unable to capitalize on the wins, and the party’s bank account has steadily depleted over the past six years. The party, by contrast, had $2 million in the bank at the start of 2010, $844,000 in early 2012 and $425,000 in 2014.
The fundraising challenges factored into the re-election campaign of Athens businessman John Padgett, who was first picked by Republican activists to run the party in 2013. He won a narrow victory last year against a challenger who claimed the party had lost its edge.
Padgett has relied upon former U.S. Rep. Jack Kingston to help the party restock its bank account, and the Savannah Republican has organized events throughout the state featuring national figures and statewide leaders. But one of the biggest events — a planned "Second Amendment celebration" for October — was scrapped.
Party spokesman Ryan Mahoney said in a statement that Padgett and Kingston are working to “raise money and strengthen relationships with key donors throughout the state and country.” He said he’s confident the GOP will have the resources to support Republican U.S. Sen. Johnny Isakson, who is seeking a third term, and win back the White House.
One party insider blamed the big bills on campaign consultants who helped Padgett win his race.
“The party was very successful when it was focused on beating Democrats,” said Justin Tomczak, a Cobb County GOP leader. “Now it seems like it’s shifted toward a patronage system. They’re handing out checks to people who helped get the party chair in place.”
Republican consultant Todd Rehm said Kingston exceeded the party’s fundraising goals by bringing in more than $250,000 since he took charge of the GOP’s donor efforts.
“But there are structural issues at the party not being addressed and he hasn’t been given the leeway to do that,” Rehm said.
Others point to a lack of urgency. With no Democratic opposition yet to Isakson, House Republicans holding on to relatively safe seats and no all-out effort yet by Democratic front-runner Hillary Clinton to turn Georgia blue, they say there’s little incentive for donors to open up their wallets.
The state Democratic Party, which has recently suffered from its own fundraising problems, has not yet filed end-of-the-year disclosures. But in a state filing in July it reported some $180,000 in the bank and $2,100 in debt.
According to the end-of-the-year disclosure report, the state GOP owes money to a host of creditors, including roughly $60,000 in credit card debt to BB&T Financial and $6,300 in rent to ASI Properties.
The party also lists owing $6,000 to Dentons, the powerful law firm that includes Gov. Nathan Deal’s campaign lawyer, Randy Evans, and $35,000 to the law firm of the party’s general counsel, Anne Lewis.
The state party also listed $25,200 in deferred payments for communications consulting to Sugarcane Strategies, the company helmed by Mahoney, the party’s longtime spokesman.
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