THE NATION - McCain is slipping in money race - He cuts staff and thinks of taking federal funds after failing to equal even his disappointing first-quarter take.
Sen. John McCain disclosed Monday that he raised $11.2 million in the second quarter of 2007 -- significantly shy of what he raised in the first 90 days of the year -- setting off a round of staff cuts and fueling perceptions of a troubled campaign.
The Arizona Republican, once thought to be the front-runner for the GOP presidential nomination, also is considering use of federal matching funds -- a step that no other top-tier candidate in either party has taken.
Although a quarterly tally of $11.2 million would have been eye-popping in past elections, it falls far short of expectations. The campaign had anticipated being able to raise $100 million this year, but through the first six months, it remains just under $25 million.
McCain reacted by cutting his staff for the second time. He ended the first half of the year with $2 million in the bank -- about enough to air television ads for maybe two weeks in the early voting states of Iowa, New Hampshire and South Carolina.
His aides did not disclose his level of debt. McCain had $1.8 million in unpaid bills earlier this year.
McCain probably has fallen even further behind other top Republicans in the money race, though former New York Mayor Rudolph W. Giuliani and former Massachusetts Gov. Mitt Romney have not yet disclosed their second-quarter totals. Former Tennessee Sen. Fred Thompson won't have to disclose what he has raised until mid-October, assuming he announces his candidacy in mid-July as expected.
Democratic contenders Sens. Barack Obama of Illinois and Hillary Rodham Clinton of New York raised $32.5 million and $27 million respectively in the second quarter.
McCain raised a disappointing $13 million in the first 90 days of the year, prompting him to shake up his fundraising operation. The latest shake-up was more dramatic as he laid off some campaign aides and cut salaries for others.
"We confronted reality and we dealt with it in the best way that we could so that we could move forward," McCain campaign manager Terry Nelson said in a conference call with reporters.
Although Nelson would not confirm the depth of the cuts, others familiar with the McCain operation said roughly 50 staffers were being let go. McCain once had 150 paid staffers.
Nelson also disclosed that McCain was contemplating taking federal matching funds to help pay for his presidential quest. No other major candidate is considering accepting matching funds. Indeed, taking the funds could be viewed as a sign of weakness.
