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 In the world of Jeb Bush, the campaign for the 2016 Republican
presidential nomination has at times been a whirl of private planes
and high-end affairs, according to the federal filings of Bush’s
campaign and his Super PAC, Right to Rise, which can raise unlimited
funds for Bush as long as it does not coordinate directly with him.
It is not unusual for U.S. presidential candidates to fly private or
even sometimes stay in luxury hotels. But some disgruntled donors
say they are unhappy with Bush's large outlays, which also include
big spending on staff and tens of millions of dollars in ad buys.
Eleven of 16 major donors contacted by Reuters questioned whether it
was money well spent, especially given how the one-time frontrunner
has stumbled badly in the polls and is now facing questions about
whether he should withdraw from the race.
(Graphic on Bush spending vs performance in polls
http://tmsnrt.rs/1SKC4O1)
In contrast to Bush, Senator Ted Cruz, who is running second in
national polls of Republican voters, favors cheaper accommodation
options like Holiday Inn and often flies on budget carriers,
campaign finance filings through the third quarter show.
 Several members of the Bush camp vigorously rejected the donor
critiques. Bush spokeswoman Kristy Campbell said, “We are running a
national campaign that is competing everywhere and we have made
investments that have allowed us to do what serious campaigns must
do to be competitive in the primary and general elections."
Ad-tracking firm SMG Delta says Bush's campaign and Right to Rise
have spent $82 million on ads, significantly more than the three
leading candidates in the Republican race: Donald Trump ($5
million); Senator Ted Cruz ($11 million) and Senator Marco Rubio
($49 million). The tracking firm’s data is more up to date than what
has been reported so far in the federal filings.
"There is no return on investment on the Bush ad buys, zero,” said
one high-dollar donor who asked not to be named, pointing to how the
ads have done little, at least so far, to lift Bush in the polls or
dent his opponents.
On Sunday, donors will learn just how much Bush has spent from his
$100 million-plus warchest. That's when Republican and Democratic
candidates and their Super PACs release their latest campaign
finance reports. What is known so far is that Bush and Right to Rise
spent at least $82 million, both in operating expenditures through
the third quarter of 2015 and on ad spending through this month.
The campaign finance reports also show that between June 2015, when
Bush formally announced his candidacy, and September, the Bush
campaign spent $1.2 million on private planes versus the roughly
$700,000 spent during the same period by Democratic frontrunner
Hillary Clinton.
Cruz spent $158,000 on private planes, and Rubio $293,300. Trump
flies around the country in his own Boeing 757.
MONEY DOES NOT EQUAL SUCCESS
The former Florida governor's spending pattern illustrates the
limits of campaign donations: Even in an era when candidates can
receive unlimited sums from wealthy donors, money doesn't guarantee
success.
“They are burning money,” said a second major donor, who, like all
the other high-dollar donors interviewed, asked not be named for
fear of displeasing the Bush family.
“Look, this is not the election cycle to be spending like a
silver-spoon Establishment candidate," said a third donor. "It just
doesn’t look right,” the donor said, referring to the way income
inequality has emerged as a key theme in the 2016 election.
Ambassador Jeanne Phillips, a member of the Right to Rise governance
committee, laughed off the criticism.
“I’ve known Jeb for 30 years, so the idea that Jeb would allow
anyone around him to be frivolous with money is hilarious, it’s
ridiculous. The man is the most conservative, fiscally responsible
person I’ve ever worked with.”
[to top of second column] |
Bush’s campaign committee paid for all lodging on the campaign trail
and the vast majority of private air charter, while Right To Rise
paid for nearly all the known ad spending.
Money donated by both large and small donors kept the Bush camp
traveling in style. There were stays at luxury hotels including the
Wilshire in Beverly Hills, the Viceroy in Florida, the St. Regis in
Dana Point, California, and the W in Stamford, Connecticut, the
campaign finance filings show.
The filings do not offer a complete picture. It is not clear for
example, how many nights were spent at each of the hotels or indeed
whether it was Bush himself who stayed or staff members.
Bush isn’t the only candidate spending at high-end hotels, but it’s
a high proportion of his overall hotel spending. He spent
$125,000,or 70 percent of his total hotel spending between June and
September on hotels defined as luxury or "upper upscale" luxury
hotels by STR Global, which tracks supply and demand data in the
hotel industry.
Cruz and Rubio each spent less on luxury hotels and a smaller
proportion of their overall lodging expenses on them, at roughly 56
percent and 61 percent, respectively, federal filings through the
third quarter show. Trump flies home nearly every night so he can
sleep in his own bed.
POSH VENUES
Bush also spent more than $400,000 on renting facilities and
catering at posh venues, including the Union League Club and the
upscale beachfront 1 Hotel South Beach in Miami, where the campaign
spent $60,000 last year. Rubio and Cruz spent roughly $265,000 and
$185,000 respectively.
Bush defenders said the spending on high-end venues was simply how
the donor world operated.
"If you can hold an event at a fancy hotel and raise millions, then
it's well worth holding it at a swanky hotel” said Charlie Spies,
counsel for Right to Rise.
Spies said Right to Rise had negotiated "below market" rates with
vendors and consultants, including an overall compensation cap for
staff.
Nevertheless the Bush camp has spent more on staff and consultants
than any of the leading candidates. Starting roughly in the spring,
Bush paid out about $8 million. Cruz spent just $2 million; Rubio,
just under $2 million; and Trump, $1.7 million.
Overall, Trump, Cruz, and Rubio have spent a small fraction of the
$82 million Bush has reported paying out. Cruz spent $18.5 million
and Rubio outlayed $32 million, according to the filings made so
far.
Bush is certainly not the only candidate to spend big on the trail.
Wisconsin Governor Scott Walker, for instance, ran an expensive
campaign and burned through nearly $10 million before quitting after
three months.
Bush's prospects were far brighter last summer. Trump had yet to
join the race and Bush was making headlines for the size of his
warchest. His Super PAC had just cracked its goal of raising more
than $100 million in just six months — an unprecedented haul in
American politics.
To celebrate, Jeb’s parents and family welcomed their large network
of well-heeled donors to their oceanside compound in Kennebunkport,
Maine, where attendees were treated to rides in private trolley
cars, lobster rolls and group photos with the sprawling Bush clan.
(Editing by Paul Thomasch and Ross Colvin)
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