ROANOKE TIMES
Copyright (c) 1995, Roanoke Times
DATE: Friday, December 1, 1995 TAG: 9512260009
SECTION: NATL/INTL PAGE: A8 EDITION: METRO
DATELINE: WASHINGTON
SOURCE: ASSOCIATED PRESS
For the first time, a cash shortage will keep the government from giving presidential candidates all the federal campaign dollars they are entitled to in January - just as campaigns enter the most expensive portion of the primary season.
Campaign officials estimate they may get as little as 60 percent of the federal matching funds they are due when the Federal Election Commission sends out the first checks Jan. 2.
The FEC says it will make good on the unpaid portion as soon as more tax dollars flow in early next year. In the meantime, campaigns expect to borrow the missing money from banks, using the government's guarantee as collateral.
That means most of the candidates should have access to the money they expected for the primary crush, although there could delays in bank paperwork and the added expense of loan interest.
``We've already got our loan papers ready to go to the bank,'' said Scott McKenzie, treasurer for GOP hopeful Pat Buchanan. ``Whenever you've got to go to the bank and borrow money, it's a headache. I'd much rather be receiving the full amount.''
Under post-Watergate changes, taxpayers have helped defray the cost of presidential campaigns. The money comes from taxpayers who mark the check-off box on their tax returns to designate that $3 go to the Presidential Election Campaign Fund.
The money provides a dollar-for-dollar match for the first $250 each private contributor gives to a qualified candidate during the primaries.And in the general election, the government pays the entire campaign costs for each major-party nominee - estimated this year at $60 million each.
Since the system took effect in 1976, the fund has always had enough money to pay the primary candidates.
The shortfall this time is not the result of a drop-off in taxpayer checkoffs. It stems in part from a procedural change in 1991 that requires the agency to first set aside tax dollars for the general election and party conventions before payments are made for the primaries.
In addition, nearly all major primaries are scheduled this year between February and April, earlier than in the past. That means campaigns have done earlier fund-raising that qualifies for matching funds.
The FEC estimates that about $23 million will be available for the January payments. The GOP candidates still in the race say they are seeking at least $25.5 million as their first installment.
And President Clinton plans to apply for at least $9 million, further depleting the pot, although he faces no primary challenge.
``We still have to get on the ballot in all 50 states, and we have to set up campaigns in all 50 states,'' Clinton spokeswoman Ann Lewis said. ``None of that comes easily, and none of that comes for free.''
LENGTH: Medium: 59 lines KEYWORDS: POLITICSby CNB