Time for the Governor to re-engage and resolve "Duf's Debt"

It's the fall of 2006, and the midst of a very intense General Election here in California... a decision was made by Governor Arnold Schwarzenegger, his campaign manager Steve Schmidt, and then State-GOP Chairman Duf Sundheim. You see, while the Governor's re-election campaign was going well but the Victory Program was rapidly running out of money heading into the final month. Then came the big decision -- to literally "bet the bank" and have the State GOP take out a THREE MILLION DOLLAR LOAN thus providing the necessary injection of cash into the CRP coffers to run a full campaign to the end.

Chairman Sundheim brought this plan to his board and convinced them to go along, creating what is now referred to as "Duf's Debt." At my very first Board of Directors meeting, the "new" Board was told that it had to approve the terms of Duf's Debt (this promissory note to a major donor, complete with interest payments). Of course, there was really no choice, since after the election, the CRP was running on fumes and Duf's Debt was a whopping $3 million. We could approve of the loan, or go into default -- no real choice there!

Fast forward to present time. Imagine my surprise when I heard that there were now "issues" with the arrangements that had been made by the Governor and his team, and the former CRP Chairman -- Duf's Debt, in fact, might not be paid.The timing, of course, is quite curious. After all, Senator John McCain has only recently become the presumptive nominee, and conversations are underway in earnest to bring together a coordinated Victory Program within the CRP to work towards a McCain California victory later this year. A matter that was originally going to be cleaned up shortly after the Governor's Inauguration, is now presenting a huge road-block to moving forward with plans for a successful 2008. It is hard to convince donors to give money when they think it may go to pay old bills, not go towards current and future programs.

Governor Schwarzenegger publicly committed to the CRP membership in a high-profile speech at a convention that this debt would be resolved. It would appear that the Governor is going to need to re-engage in the process, and help his Party resolve Duf's Debt. After all, I am sure that the last thing that Arnold would intend is for the deficit from the effort to re-elect him to now negatively impact Senator McCain's efforts to keep the Presidency in Republican hands.

The Austrian and Duf stiff the CAGOP and, apparently, McCain. Thought McCain and the Austrian were Fellow Travelers?

From my perspective it couldn't have happened to a nicer group. Or ... is this story just a cover because corporate California, outside the OC, is refusing to give anymore dough to the CAGOP?

Interesting little article and even more interesting comments. It sure looks like there are folks trying to hang this around Nehring’s neck and oust him. Also seems like a few would like to send Fleishman with him. I got a real chuckle when Maviglio weighed in, LOL. I also get riled everytime I think about the millions Schmidt&Co poured into electing Arnold (while defeating the eminent domain measure—and taking McClintock out at the same time).

But I sat here absolutely scratching my head at the comments by Bob Evans trying to figure out what issue (or what candidate) in recent years generated such anti-religion sentiment. He literally sounds like he’s blowin’ a gasket with his rants. Other than the $6 billion dollar boondoggle on stem-cell research, which most should have opposed for fiscal reasons alone, I can’t think of any huge “social issues” that have dominated the party. And his calling the party “far right wing” is simply laughable. The party that endorsed mega-borrowing and massive gambling expansion is “far right”? Seems to me like the leadership is infested with liberals or non-ideological crooks.

But I sat here absolutely scratching my head at the comments by Bob Evans trying to figure out what issue (or what candidate) in recent years generated such anti-religion sentiment.

Evans is not atypical as socially liberal Republicans go. His anger is not directed at an elected official, or past nominee, but in general, at all social conservatives on the CAGOP board.

The hot button, but absolutely unmentionable, topic for social liberals in the CAGOP is illegal immigration. They want to expand their big tent and know that any discussion of traditional views regarding the rule of law will simply alienate Mexicans in California. Without strong recruiting among Mexicans, substantially the consequences of illegal immigration into California, the party will wither as the monster that Reagan created in 1986 slowly smothers his beloved state.

The reader is left with the impression that Evans sincerely believes that a controlling majority of the CAGOP board is against the nomination of John McCain and working to thwart McCain's campaign efforts in California by cutting off the supply of money to McCain (RNC).

LOL. Well, I'm sure that his god-hating rants are sure to attract swarms of new Republicans from the largely Catholic Mexican community. What a dope! (A community, BTW, where there are also a large number of people that are sick and tired with illegal aliens who haven't had to run through the hoops they ran through to be here legally!)

Well thank goodness many on the board are realists. While McCain got 42% of the primary voters, that was only 19% of registered Republicans -- and only 6% of the states' registered voters. They could pour $50 million into California, alone, and it still won't motivate people to show up to vote for the guy. If they cut their losses now and put whatever resources they have into Congressional races I think they will actually get some support -- and some may actually throw McCain a bone in the process. JMHO.

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