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Democrats Trail GOP in House Funds
By KEVIN GALVIN Associated Press Writer
WASHINGTON (AP) -- The Democratic Congressional Campaign Committee trails its
GOP counterpart four-to-one in money it can spend directly on House candidates. And it
is being criticized for accepting a six-figure donation from an executive whose company is
under investigation.
Federal Election Commission records show the DCCC in August received $100,000 from
Bernard Schwartz, chief executive officer of Loral Corp. Congress and the Justice
Department are reviewing Loral's satellite dealings with China. The company has denied
any wrongdoing.
Republicans suggested Wednesday that the contribution be given back. But with House
elections just weeks away, the DCCC's bigger problem may be its lack of so-called hard
money, funds that can be spent directly on federal candidates.
The National Republican Congressional Committee reported it had $7.4 million in hard
money in the bank, compared with just $1.7 million the DCCC had at the end of August.
The DCCC, which started the year with hopes of trimming the Republicans' slim majority
in the House, shrugged off the gap by saying it is exceeding its own fund-raising goals. It
still can take out loans to fund activities up to Election Day.
''It's never been part of our strategic planning that we can outspend the Republicans,''
DCCC spokeswoman Olivia Morgan said. ''We just spend smarter and we have better
candidates.''
The DCCC's hard money accounts are lagging behind the committee's past performance.
In 1996, a presidential year, it had more than $4 million on hand at the end of August. In
1994, when Democrats lost control of Congress to the GOP, the committee had $3.6
million on hand to start September.
Republicans are trying to score political points with the DCCC financial standing, noting
the Democratic committee sent $460,000 in soft money to the home-state party of DCCC
Chairman Martin Frost.
NRCC spokeswoman Mary Crawford suggested Frost was worried about the strength of
his Republican challenger, Shawn Terry.
''Clearly Mr. Frost is worried about his own re-election with Shawn Terry nipping at his
heels,'' she said.
But Morgan said the transfers took place under the committee's ''Texas Fund,'' a
previously disclosed program under which money raised at certain Lone Star state events
are earmarked for the Lone Star state.
''This is a battleground plan we've been talking about for over a year,'' she said.
However, NRCC analysts who studied the Democratic documents filed with the FEC
contended that most of the money used for the Texas transfers came from sources outside
the state.
Rep. John Linder, R-Ga., the chairman of the NRCC, urged Frost to return the $100,000
from Schwartz because of the current inquiries into a federal waiver that allowed it to sell
sensitive satellite technology to China.
''The DCCC goes to people like Bernie Schwartz,'' Linder said. ''They took a $100,000
check from him on Aug. 14 and frankly, I think they ought to return it.''
AP-NY-09-23-98 1917EDT
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