State: Democrats face money struggle

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Democrats face money struggle

The state Democratic Party is making changes at the top to try to restore financial stability.

By LUCY MORGAN

TALLAHASSEE -- After losing control of the governor's office and the state Legislature over the past few years, Florida's Democratic Party is now struggling financially.

"We're not broke, but I wouldn't say we are in great financial shape," admitted Senate Minority Leader Buddy Dyer.

Party financial reports released this week show that the Democrats have spent about $2.7-million more than they have collected since September 1998. The reports also show the state Republican Party raised more and spent more than the Democrats by a huge margin.

Since January 1998, the GOP has collected $25.3-million in contributions and spent $21.3-million. During the same period Democrats collected $6.9-million and spent $5.4-million. Out of the total collected, $595,643 was funneled into Florida from the Democratic National Committee in Washington.

The totals mean that the Democrats -- who lost the governor's race last year -- are at a distinct disadvantage as they head into next year's campaigns to replace U.S. Sen. Connie Mack, elect state legislators and help Al Gore's campaign for the White House.

Charlie Whitehead, who headed the party in the 1980s, is expected to be selected Saturday to replace Democratic Party Chairman Mitch Ceasar. Several legislators say Ceasar was tossed out because he was not raising money to help the party.

"We had to stop the bleeding," said Rep. Lois Frankel, D-West Palm Beach. "When I get out of here (when the legislative session ends April 30), I'm going to spend every day raising money. Mitch saw heading the party as an opportunity to increase his lobbying business, not to raise money for us."

Attorney General Bob Butterworth, one of the state officials who helped push Ceasar out of the chairmanship, said he believes Whitehead will be able to "pull it together" and provide the fund-raising leadership the party needs.

Though some Democrats say the situation is critical, outgoing party chairman Ceasar insisted Wednesday that the party has enough money on hand to pay its bills.

The exact figure was hard to pin down Wednesday. Ceasar said he knows the party has more than $30,000 to $40,000 on hand. Executive Director Screven Watson insisted it is more than $100,000, an amount that would take care of the party's payroll and fixed expenses for about two months. Watson said he is reluctant to say how much the party has lest he let the Republican Party know too much.

Whitehead, a former Panama City car dealer slated to be elected party chairman, said he plans to make fund raising his first priority and is prepared to extend a personal loan to keep the doors open for the next six months, if the party needs it.

"Coming out of an election, the Democratic Party is really not in the ballgame with the Republicans in fund raising," Whitehead said. "It's normal to be low on cash at this time, but I've been told we might have spent down a little further than we should have."

Whitehead said he has heard rumors that financial problems date back "quite a while," but he has yet to take a look at enough records to draw a conclusion.

In addition to switching chairmen for the third time in a year, the Democratic Party recently dismissed Scott Falmlen, the executive director who ran day-to-day operations the past few years.

On his way out the door, Falmlen collected more than $43,000 in two installments: $38,754 paid Jan. 12 and $5,074 on Feb. 2, according to the party reports released this week.

Some party officials say they were unaware of the lump-sum payment and thought Falmlen was being paid in monthly installments as work was performed.

Ceasar initially directed a reporter to Watson to answer questions about the money that went to Falmlen. But Watson said the contract authorizing payment to Falmlen was signed by Caesar in December, more than a month before Watson took over as executive director.

Ceasar said he did not know about the lump-sum payment until he was asked about it by a Times reporter Wednesday. He acknowledged that he did authorize a contract with Falmlen to help with "technical issues" after his departure. Ceasar said he doesn't know who signed the check.

"I usually approve expenditures, but I don't sign them in person," Ceasar said. "I didn't know until today that he got one payment. I've got to get more information on that."

Jon Ausman, vice president of the state party, said the contract to pay Falmlen was never approved by the party's finance committee as required by internal rules. But Ausman thinks he knows who signed the check.

"Mitch Ceasar gave Scott permission to have a rubber stamp with his signature on it," Ausman said. "And Scott cut himself a check at a time when the party is not in the best of shape because of his (Falmlen's) poor stewardship. It's outrageous."

Falmlen could not be reached for comment Wednesday.

When the $38,000 check was written, the party had less than $120,000 in the bank, Ausman said. He said he's not sure what is left because the monthly financial reports that usually go out to members of the finance committee haven't been issued since January.

Ausman said other financial problems are surfacing daily. Among other things, he said, the party discovered thousands of dollars in unpaid credit card bills for people who were using party credit cards -- "staff members who weren't staff members. I never heard of some of these people."

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