Romney's cash lead fueled by own fortune

WASHINGTON -- Presidential contender Mitt Romney has retained his fundraising edge over his Republican rivals, despite a slightly larger haul by Rudy Giuliani in the past three months, figures released Thursday show.

Romney's lead is based, in part, on the substantial loans he's made to his campaign, including $8.5 million from July through September. The third-quarter loan represents virtually all the cash Romney has on hand to fight for his party's nomination.

"Without his personal funds, he would be broke today," said Jennifer Steen, a political scientist at Boston College, who studies self-financed candidates.

Romney, who is worth $190 million to $250 million, is not the first candidate to help fund his own campaign. Texas billionaire Ross Perot and publisher Steve Forbes each pumped millions into their unsuccessful presidential bids.

Unlike other wealthy candidates who rely on their own financing, Romney has spent considerable time and effort to court individual donors to build his organizational strength on the ground in early voting states.

The strategy could be working: The former Massachusetts governor leads all state polls in Iowa, which holds the first caucuses in the 2008 race. In New Hampshire, home to the first primary, Romney is either first or tied for the lead, but his share has slipped in recent weeks.

By comparison, Romney is ranked fourth in most national polls and is well behind Giuliani, who is at the top.

The fundraising figures released Thursday by each campaign show Romney collected $10 million from July through September, not including the money he loaned himself. Giuliani raised $11 million, and former Tennessee senator Fred Thompson collected $9.3 million. Arizona Sen. John McCain said he raised $6 million.

Among the leading GOP contenders, Romney is the only one to put his own money into the campaign. McCain, whose campaign has struggled financially, has said he would not tap the fortune of his wife, Cindy, an heiress to a major beer distributor. Giuliani spokeswoman Maria Comella said the former New York City mayor does not plan to self-finance his campaign.

"We're very proud of the fact that real donors have contributed to our campaign," she said.

Romney also has outspent his rivals. He has spent at least $20 million more than Giuliani, who is second in the overall GOP fundraising race.

Since January, Romney has pumped about $8 million into TV ads — far more than any GOP or Democratic candidate, said Evan Tracey, chief operating officer of the Campaign Media Analysis Group of TNS Media Intelligence.

Romney spokesman Kevin Madden said Romney needed to use his own money to boost his name recognition. Romney's own money also accounts for a bigger share of his campaign war chest. The loans represent about half of his receipts for the summer compared with about 10% of his total raised from January through March.

Madden said Romney's decision to loan himself money would not hurt him. "Voters don't sit around the kitchen table and talk about how each campaign is financing their efforts," he said. "They are motivated by a message and vision about where you want to take the country."

Despite Romney's growing reliance on his personal wealth, fundraising experts said the strategy could work. Massachusetts Sen. John Kerry mortgaged his family's Boston home and loaned himself more than $6 million — a move that helped him win the 2004 Iowa caucuses.

Steve Roberts, a Republican National Committee member in Iowa, said Romney has done more than just spend money there. He "has traveled across the state, and he's worked the small town hall meetings," said Roberts, who is not affiliated with any campaign. "He has paid his dues on the ground here."

Rich Bond, a former Republican National Committee chairman and a McCain supporter, said Romney's decision to partly fund his own campaign was a smart one. McCain "has been running a campaign on a shoestring," Bond said, "and Romney has been able to produce money at the snap of a wire transfer."