State GOP split as convention nears

San Francisco Chronicle ^ | 2/16/8 | Carla Marinucci

[SmithL]

The cash-strapped California Republican Party is facing deeply divisive political and financial problems in this critical election year - beginning with a $3 million loan from a furious contributor who was supposed to have been repaid on Friday.

The troubles of the GOP in the nation's most populous state - which backers of Sen. John McCain insist could be competitive in the fall presidential election - come at a crucial time. The California party convention is Feb. 22 in San Francisco, and conservatives and moderates will debate the platform and whether independent voters should be allowed to cast ballots in state GOP primaries.

But the most urgent concern for many Republicans is the appalling financial condition of the state party, which is now overdue on repaying a $3 million loan provided in 2005 by Larry Dodge, chief executive of the American Stirling Co. Although the party's finances have fluctuated in the past, such a large debt - combined with the robust fundraising of Democrats nationwide - has many California Republicans extremely concerned.

Some GOP officials say the loan is not the state party's responsibility, but is a matter for Republican Gov. Arnold Schwarzenegger to resolve.

"The understanding of the California Republican Party was that the loan would be repaid today - and if it isn't, that's concerning," Jon Fleischman, vice chair of the Southern California GOP, told The Chronicle on Friday.

... "The registration gap (with Democrats) is widening, contributions are drying up, key posts have been left open for a year, staff is being laid off and there is a never-ending string of reports which is causing long-term damage to the image of the party," Dodge wrote in the letter. "Immediate comprehensive action is required. The stakes are too high, the problems too deep, to do otherwise."

[Mojave]

Race for ‘08: Pair pledge $3 million to cover state GOP’s debt
By Shane Goldmacher - Bee Capitol Bureau
Published 12:00 am PDT Saturday, August 18, 2007

The California Republican Party has secured commitments for $3 million from two wealthy GOP patrons to help pay off the party’s remaining debts from the 2006 election.

The funds will come from Republican financiers Paul Folino and Larry Dodge, donors with close ties to Gov. Arnold Schwarzenegger. The party spent millions helping re-elect Schwarzenegger last year, including paying for television ads, and the governor had promised to help pay off those debts.

“I am doing great,” said Ron Nehring, the California Republican Party’s chairman. “I had a $3 million week this week. It’s a great development for our party and really helps us move into the fall and do what we need to do for the 2008 campaign.”

He credited the governor and his campaign team for securing the funds, saying the money “reflects the governor’s commitment to see the debt retired.”

http://www.sacbee.com/111/story/331935.html