California Republican Party - Chairman Ron Nehring's Final Report


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Chairman Ron Nehring's final report to the California Republican Party, highlighting accomplishments from 2009 - 2011.

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California Republican Party - Chairman Ron Nehring's Final Report

  1. 1. Chairman’s Report Ron Nehring Chairman, California Republican Party 1
  2. 2. What can the CRP’s leadership directly control? External Factors Internal Factors • • • • • • • • Nomination of candidates Candidate campaigns Candidate messaging Legislation Finances Management Personnel Programs 2
  3. 3. What We Accomplished Together: FINANCES 3
  4. 4. CRP: Out of Debt End of cycle financial position, 2006 vs. 2008 vs. 2010 $484,160.18 Dec. 2006 $427,297.38 Dec. 2008 Dec. 2010 $(4,147,772.68) 4
  5. 5. California Republican Party: $73.8 million raised by the team Thank you to the entire finance team 2007 - 2011: • • • • • • Finance Chairmen Francis, Tellefsen, Krvaric, Miller Team Cal Chairmen Russo, Lyons Assembly Leaders Plescia, Villines, Blakeslee, Garrick, Conway Senate Leaders Ackerman, Hollingsworth, Dutton Finance Director Molly Parnell and her team Executive Director Brent Lowder 5
  6. 6. New Financial Controls and Practices.  Spending against Available Funds, not Cash on Hand.  Purchase orders. Expenditures approved internally only after ED approved a purchase order. Checks against available funds and budget.  Vendors mandated to provide final invoices by Nov 20.  Dual signatures on all party accounts.  Complete revision of personnel manual, practices, reducing costs.  Rapid downsizing of staff following election. Sustainable trajectory.  Funding the reserve ongoing, not at the end. 6
  7. 7. Candidate Campaigns • Startup. • Responsible for electing ONE candidate. • Candidate is in charge. • Terminates on Election Day. Party Committees • Ongoing entities. • Responsible for supporting multiple candidates. • Democracy. • Still has bills to pay in December, etc. 7
  8. 8. What We Accomplished Together: PROGRAMS 8
  9. 9. Networks: Coalition Building & 26 Coalition-specific Networks 23,595 Members Retained Fiorina + Whitman Voter Network Tags
  10. 10. Networks Coalition ID Flags 37 74 370 African American Coalition Agriculture Coalition Asian American Coalition 2,891 Business Coalition 3,794 600 345 Educators Coalition GenM Coalition Healthcare Coalition 399 430 Jewish Coalition 611 463 21 462 916 4 7,177 1 Latinos Coalition Local Elected Official Coalition National Elected Official Coalition Nurses Coalition Public Safety Coalition Seniors Coalition Veterans Coalition Youth Coalition Leadership Coalition
  11. 11. • 760+ candidates, staff and activists trained. • 10 campaign schools Grassroots Organization, Technology and Social Media, Message, Volunteer Recruitment, Voter Contact and Fundraising • Two Campaign Management Colleges Sacramento: August 14 – 15 Orange County: August 28 – 29
  12. 12. Voter Registration 1988-2010 9,000,000 8,000,000 7,052,386 7,000,000 7,410,914 7,219,635 7,387,504 6,671,747 7,683,495 7,620,240 6,989,006 7,134,601 6,825,400 7,120,425 6,727,908 6,000,000 5,745,518 5,704,536 5,436,314 5,428,052 5,361,875 5,406,127 5,290,202 5,593,555 5,472,391 5,314,912 5,485,492 5,388,895 5,000,000 4,192,544 4,303,768 3,672,886 4,000,000 3,087,214 3,089,174 3,236,059 2,570,035 2,665,267 3,000,000 2,000,000 2,097,004 2,031,758 1,546,378 1,516,078 1,000,000 0 1988 1990 1992 1994 1996 1998 DEM REP 2000 OTHER 2002 2004 2006 2008 2010
  13. 13. Voter Registration 327,426+ New Republicans Registered in California in 2010 CRP Direct w/ Local Control 15 County Committees participated 33 Vendors contracted at local level 8 Vendors contracted at state level Independent Expenditure 31 GOP Counties 27 DEM Counties 4 of 7 largest are DEM $3.62 million $12.12 average per registration
  14. 14. Sacramento Region Total Registrations: 56,153 Bounty: 18,006 Rest of State: 1,002 Central Valley Region Total Registrations: 23,778 Bay Area Region Total Registrations: 30,561 Inland Empire Total Registrations: 55,398 San Luis Obispo County Total Registrations: 5,337 Los Angeles Region Total Registrations: 58,471 Orange County Total Registrations: 16,176 San Diego Region Total Registrations: 34,108 CRP Registration Totals: 298,990 527 Registration Totals: 28,436 Overall GOP Registration Totals: 327,426
  15. 15. Turnout by Party Affiliation 70.0% 60.0% 50.0% REP 65.7% DEM 40.0% 30.0% 60.1% 61.1% 48.7% DTS OTHER 20.0% 10.0% 0.0% 22
  16. 16. Voter Turnout: Statewide Precinct Operations & Contact 3,396,636 Grassroots Voter Contacts 2,926,666 Phone Calls 469,970 Door Knocks 530,000 Walk Pieces Delivered 59 County Customized Versions 5,000+ Precinct Rep. Database 2 Statewide Precinct Walks 42 Counties Activated 900 Candidates Endorsed 675 for Local Office 60% Local Win Rate 18.9 million mail pieces 1.5 million target voters
  18. 18. Groundhog Day • Risk: Beginning the next cycle with weakness: – Financially crippled. – Lack of accumulated assets from 2010 – Dissipation of accumulated knowledge • This happens to state parties over and over again.
  19. 19. State Party • Ongoing entity. The party cannot shut down on Election Day. It needs to function, has bills to pay. • Responsible for supporting multiple candidates. Tendency for statewide candidates to expect party to be only about them, to the exclusion of Congressional, state legislative, local candidates. • Democracy. Political parties are not dictatorships, like candidate campaigns. Rules, process are important. • Still has bills to pay in December. Much tougher to raise money after Election Day, yet party will have financial needs
  20. 20. We know… • Fundraising, particularly major donor fundraising, will slow to a crawl or stop altogether following Election Day. • In many cases, win or lose, the candidates are not going to be interested in, or capable of, raising money for the state party after the election. • Assets will fly away without a conscious effort to retain them. • The party will be called upon to support candidates in 2012. • Debt generates bad press, making fundraising even more difficult.
  21. 21. Advice for Future CRP Leaders Rule #1: You are the leaders at the table whose first responsibility is to the state party. • Everyone else has a different first priority. – – – – – Elected officials Candidates County chairs Donors Volunteer groups
  22. 22. Advice for Future CRP Leaders Rule #2: The Chairman must be responsible for approving state party expenditures.  Accomplished
  23. 23. Advice for Future CRP Leaders Rule #3: The state party staff must be accountable to the chairman. • Everybody needs a boss. • Management by committee does not work. • Nothing with two heads lives.
  24. 24. Advice for Future CRP Leaders Rule #4: Recognize the state party has responsibilities that go beyond this year’s candidates and elected officials. • The party has bills to pay in December, and you’re responsible for them. • Fundraising dries up after the election. • Debt is crippling. Real-time debt, future debt resulting from no reserve.
  25. 25. Advice for Future CRP Leaders Rule #5: Do not run the Republican Party the way Democrats run government. • • • • Map out the budget for 2013 before Election Day 2012. Do not set unrealistic fundraising expectations post-Election. Do not end in debt. Establish and fund a cash reserve to carry through postelection dry season.
  26. 26. Advice for Future CRP Leaders Rule #6: Consider every party activity to be an infrastructure-building exercise. • Fundraising. Build your list. Build your sustained giving programs. Enroll donors into donors clubs, anticipate renewals. • Political programs. Add tags to your voter file. Build volunteer lists. Mail and doorhangers should include reply devices. Archive all polling, research, plans. • Communications. Continually improve the media list. Expand the contact lists. • Administration. Retain computers, phones, hard assets.
  27. 27. The next three cycles can look like this… Start Finish …or this… Finish Start
  28. 28. What We Have Left to Do 35
  29. 29. What we have left to do: PERMANENTLY PROHIBIT MASSIVE LOANS/DEBT Amendment to 3.03(B)1: (1) Any proposed contract, transaction or other obligation which exceeds $100,000 in amount shall be subject to the prior express approval of the Board of Directors. (2) The Board of Directors is specifically prohibited from recognizing, authorizing or reauthorizing any loan or obligation, of any amount, entered into but not repaid during the previous term of the Board of Directors. This provision shall not apply to a mortgage taken for the purchase of a building or similar facility. (3) Any proposed contract, transaction or other obligation the performance of which extends beyond the term of office of the Chairman or Board of Directors shall be subject to the express prior approval of the Committee or the Executive Committee by a majority vote of the voting delegates present. However, the Committee and the Executive Committee are specifically prohibited from accepting any loan or other form of debt under this section. 36
  30. 30. What we have left to do: REQUIRE THE FUNDING OF A CASH RESERVE TO FUND THE PARTY AFTER ELECTION DAY (2) The budget shall provide for a transition fund sufficient to fund all operations of the committee from November 1 of the even-numbered year to March 1 of the following year to be spent after the end of the preceding fiscal year and before the adoption of the next biennial budget. The full amount of the transition fund shall be set aside and sequestered by October 1 of the even-numbered year. No expenditure of committee funds of any kind, from any account, shall be permitted after October 1 of the even-numbered year unless the transition fund has sufficient funds A MINIMUM OF $500,000 deposited within it as outlined by this section. This section may be waived only upon a 2/3rds recorded roll call vote of the Board of Directors. 37
  31. 31. What we have left to do: ALLOW THE CRP TO CONDUCT INDEPENDENT EXPENDITURES, JUST LIKE OTHER GROUPS Add new 2.06.02 (K) Independent Expenditures Committee. The Independent Expenditures Committee shall develop and implement plans to conduct independent expenditures in support of federal and state candidates endorsed by the Committee or in opposition to candidates opposed by the Committee. The Independent Expenditures Committee shall be composed of persons appointed by the Chairman who could legally participate in independent expenditure decisionmaking for the Committee in compliance with applicable federal and state laws governing such activities. The Federal and State Independent Expenditures Committee shall develop a budget for such activities, which budget shall be incorporated in the budget process of the Committee. The Chairman of the Committee shall report to the Chairman of the Committee and designated members of the Board of Directors who meet the same legal criteria for participation in decisionmaking of the Independent Expenditures Committee. 38
  32. 32. Final Thoughts 39
  33. 33. Thank You! 40