News

Obama limits spending in June

Barack Obama cut back on his spending in June after securing the Democratic presidential nomination, building up his cash on hand as Republican John McCain outspent him with a heavy dose of TV advertising.

Unlike McCain, who spent more than he raised in June, Obama accumulated cash during the month, holding back on a ramped-up television campaign until July. Obama is now matching McCain's and the Republican Party's spending on advertising.

McCain reported his June fundraising in a monthly report filed Friday with the Federal Election Commission. Obama had until midnight Sunday to file his report.

But Obama's campaign announced last week that he raised $52 million in June, more than twice the nearly $21.5 million raised by McCain during the month. Obama reported having $72 million cash on hand to McCain's $27 million.

Besides raising his own money, Obama is also encouraging his major contributors to help former Democratic rival Hillary Clinton retire her campaign debt. On Sunday, Clinton reported having a $25.2 million debt at the end of June, including her own $13.2 million loan to the campaign. She reported raising $2.7 million from donors during the month.

While McCain reduced his cash on hand from May to June, Obama increased his by $29 million.

The different financial pictures reflect two distinct strategies by the campaigns. McCain plans to accept $84million in public funds for the fall presidential campaign, a move that prevents him from raising or spending any more money above that sum.

Obama has decided to the bypass the public finance system, the first major party presidential candidate in three decades to do so in the general election. That means Obama needs to build up his cash reserves going into the fall campaign, whereas McCain needs to deplete his.

  Comments