State Republican Party Blames Sacramento Downsizing On Lack Of Donations

SACRAMENTO (CBS13) - In this economy, even the California Republican Party is struggling.

The executive director told CBS13, they are several hundred thousand dollars in debt and they're not paying some of their bills.

The state Republican Party isn't hiding their financial troubles. They say it's not from mismanagement, but a tough fund raising climate.

"It's a tough time. The fundraising environment, it's not an easy one out there," said Brent Lowder, executive director of the California Republican Party.

That's the reason the California Republican Party gives for being nearly $300,000 in the red.

"Is there financial difficulty? Yes. Is it financial peril? No," said Lowder.

Lowder denies reports they're shutting down their Sacramento office.

"Not true, we are downsizing the office here in Sacramento," said Lowder.

The party has already cut three positions in Sacramento, and Lowder says all their outstanding bills will be paid by the end of the year.

But the state Republican Party's fundraising troubles remain.

Lowder says donors are giving their money elsewhere, whether it be to Super PACs or directly to campaigns.

Mitt Romney has made several trips to California, racking up millions of dollars.

"He's raising that for his campaign, and frankly we like that because we want him to have the resources to defeat the president in November," said Lowder.

Democrats blame their rivals' money troubles on mismanagement and say their lack of cash will cost them big time come November.

"This is where the grassroots effort really needs the state party to support them, and if they have no money it's going to give democrats the possibility of winning two-thirds in both the houses," said Steven Maviglio, a Democratic strategist.

But Lowder says his party raised good money in July and will fight hard to win the upcoming elections.

"It's tough, but I think we're doing fine. We're forging ahead, and adapting the new reality to see if we can maximize our opportunities for the fall campaign," said Lowder.

CBS13's Ben Sosenko spoke to Dan Lundgren's congressional campaign manager who said the state Republican money trouble will not impact their race, which is expected to be a tight one.