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RNC boss inherits $23 million debt

Priebus
Philip Elliott Associated Press
Priebus

WASHINGTON – Newly elected Republican National Committee Chairman Reince Priebus took the job with $23 million in debt and cut a third of the staff he inherited from his predecessor, the controversial and gaffe-prone Michael Steele.

In year-end federal finance reports on Monday, the GOP central committee showed that $2 million of its debt came during Steele’s final two weeks as he sought to keep hold of his chairmanship. The Democratic National Committee, meanwhile, reported a continued fraction of that debt but had enough cash in the bank to pay off the loans immediately.

“While the year-end FEC report reveals the Republican National Committee is $21 million in debt, I believe it is best to get out all the facts as we know them associated with our financial position,” Priebus said. “To date, the committee has approximately $23 million in debt: $15 million in loans and $8 million owed to vendors.”

Priebus, a former Steele ally who unseated him, campaigned for the chairmanship promising to get the RNC’s finances in order heading into the 2012 presidential elections. With Republicans hoping to limit President Barack Obama to a single term, committee staffers are overhauling the operation that is expected to have millions in donor dollars and a national campaign-in-waiting ready to hand the eventual nominee, as well as help other Republicans running for office.

“I am excited about these first steps, but recognize we have a long way to go to build the world-class political organization necessary to defeat President Obama. I will accept nothing less,” said Priebus, a former Wisconsin GOP chairman.

The RNC brought in almost $105 million last year – including the loans – mainly through low-dollar donors and direct-mail solicitations. But Priebus said the costs were too high: 64 cents of every dollar raised went to fundraising.

“We have our work cut out for us, but I am confident we will succeed in turning around the RNC through hard work, transparency and honesty with our hardworking grassroots activists and donors,” Priebus said.