Politico's Vogel: "McCain qualifies for public funds" - updated version

The Politico’s Kenneth Vogel has an updated version of his story on Senator McCain’s qualification for public funds. Here’s the text:

McCain qualifies for public funds
By: Kenneth P. Vogel
August 28, 2007 05:49 PM EST

John McCain on Tuesday became the first 2008 presidential candidate to
qualify for taxpayer dollars for the primary election. McCain’s application and qualification for the funds is likely to be interpreted by opponents as a desperate move, even though it does not lock him into the public financing system. Jill Hazelbaker, a spokeswoman for McCain, said: “This isn’t a sign of desperation — it’s a sign of prudence and should be interpreted as such.”

McCain has lagged behind the Republican front-runners in the polls and in fundraising. Participating in the public financing system would allow him in the coming months to get an infusion of loans by borrowing against the promise of taxpayer dollars.

But the system is a trade-off, since it would also cap at about $50 million the amount of cash his campaign can spend during the primary — a limitation that would go into
effect immediately. The leading contenders for the nomination will likely quickly eclipse that level of spending, potentially putting McCain at a distinct disadvantage in early states.

McCain, a senator from Arizona once considered the leading candidate for the GOP presidential nomination, spent $22 million in the first six months of the year, according to a report he filed in July with the Federal Election Commission. It showed he brought in $25 million, and racked up $2 million in debt.

Compare that to the GOP field leaders: Former New York City Mayor Rudy Giuliani since January has raised $33 million and spent $17 million. And this year, former Massachusetts Gov. Mitt Romney spent $31 million and raised $35 million from supporters , though he has also loaned his campaign $9 million.

The matching public funds would be provided starting in January, but McCain could use the FEC certificate promising the funds as collateral for loans before then.
Even if the campaign opted not to borrow against the funds, a source close to the campaign predicted the Jan. 1 start of the matching funds would be “just when it will be most useful to him in early primaries.”

“It looks increasingly unlikely that most other Republican candidates will raise significantly more than McCain by then,” the source said. “So having these funds available at a crucial time gives McCain an important option. Whether he decides to use that option depends on his other fundraising for the rest of the year.” The maximum amount a candidate could receive is currently estimated to be about $21 million. McCain spokeswoman Hazelbaker also pointed out that last week former commerce secretary and top fundraiser Robert Mosbacher joined the campaign as general co-chairman, which she called “evidence of the fact that we continue to attract well-respected leaders to assist in our effort.”

McCain applied to receive the funds Aug. 10, and the FEC announced Tuesday that he qualified. In order to qualify for the program, candidates must raise $100,000 by collecting $5,000 in 20 different states in amounts no greater than $250 from any individual contributor.

You can read the full text of the original article here. You can contact Campaignia at publisher@campaignia.org.