Last Minute $300,000 donation from the IBEW helps Democrats Break Even on Convention

Democrat event may see a $3m surplus
Host committee gets influx of donations

By Andrea Estes, Globe Staff | September 28, 2004

After months of hand-wringing over the possibility of a fund-raising shortfall, the Democratic National Convention host committee took in a flurry of 11th-hour donations that resulted in a surplus of several million dollars, according to financial reports due today.

The reports show Boston 2004 Inc. raised $54.4 million, with checks totaling about $12 million coming in since July 1, just three weeks before the convention began.

After it finishes paying some $51 million in expenses, Boston's host committee will probably end up with a surplus of up to $3 million, according to the report.

Julie Burns, executive director of Boston 2004, said the committee raised more than any other Democratic convention host committee.

"It's an unprecedented amount of money," said Burns. "We're very pleased that we didn't have to ask the city or the state to help fund this event in light of the difficult economic times and fiscal situation for the Commonwealth."

Burns said the committee has yet to decide what to do with the surplus. The extra won't go back to donors, she said, and the committee is barred by law from turning it over to political groups or for-profit organizations. The money could go back to the city of Boston in the form of a grant.

The host committee had until yesterday, 60 days after the convention, to publicly disclose its fund-raising and spending. The total cost of the convention has reached more than $100 million, according to the report, with half financed by private donations and half by the federal government. In addition to the $54.4 million in cash and in-kind donations collected by the host committee, the federal government paid security costs of $40 million. And the Democratic National Convention Committee had $14.9 million in federal funds to spend.

Raising enough money was a headache for Mayor Thomas M. Menino and the host committee he leads. Under the terms of the contract with the DNC, Boston 2004 was obligated to raise $39.5 million. When construction costs in June increased by $5 million, organizers said they would boost their fund-raising to $44.5 million. Any additional costs could have fallen to city taxpayers.

"It all came in at the end," Menino said yesterday. "People wanted to fulfill their commitment. There was also excitement about the Kerry-Edwards ticket. It made it easier to raise the resources."

Menino said he and US Senator Edward M. Kennedy solicited donations two years ago, but played only a minor role as the convention approached. "In the end it had a momentum of its own," he said. "People wanted to get involved."

DNC organizers, he said, proved the critics wrong.

"There were all kinds of accounts of disaster -- there would be thousands of arrests and financial disaster," Menino said. "We did what we said we'd be able to do: meet our obligations. The convention came off.

"We had only seven arrests, and we didn't have a financial disaster," he said. "We have a surplus. Everyone is proud."

Menino and Burns said they do not know how they will spend the extra money. "It's premature at this point to talk about that," said Burns, who added that the Federal Election Commission may audit the host committee's spending. Until the FEC OK's a final accounting, Boston 2004 can't release any money, she said.

Several last-minute donations came from labor unions, many of whose members played a role in the preparations.

New England's regional carpenters union gave more than $100,000 to Boston 2004, and local affiliates of the plumbers, roofers, and pipe fitters unions gave less than $50,000 apiece.

The city's last-minute settlements with unions also helped draw labor money, with at least $2.25 million flowing to the host committee from big national unions in July.

The Service Employees International Union donated $1 million to Boston 2004 on July 2, and the American Federation of Teachers gave $500,000 on July 9. The American Federation of State, County, and Municipal Employees gave $700,000 in two payments. The International Brotherhood of Electrical Workers gave $300,000 on July 12.

Among other contributors were the chairman of the Red Sox, John Henry, who gave $50,000 on July 14, and the team president, Thomas Werner, who gave $33,000. The Red Sox Foundation gave $100,000. Verizon gave more than $2 million in installments, ending with an $18,000 donation Aug. 12. John Hancock Financial Services Inc. gave a total of $2.12 million. The Morongo Band of Mission Indians of Cabazon, Calif., gave $100,000 on July 22.

The expenditures listed in the report include: $13 million to transform the FleetCenter for the extravaganza; $8.8 million for television production costs; $1.6 million on a media party; $2.4 million for event services, which included the Boston Pops concert on City Hall Plaza, a reception to thank volunteers, and the DNC's 2001 site visit; $3.5 million for the rental of the FleetCenter; and $2.4 million on computers.
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