Debt-Limit Debate May Cost Obama's Re-Election Campaign Millions

WASHINGTON (The Blaze/AP) -- The elongated and often contentious debate in Washington over the nation's debt has had a hefty price tag for President Barack Obama's re-election campaign.

Officials expect to raise tens of millions of dollars less this summer than it did in the spring because negotiations over the nation's debt limit forced Obama to cancel several fundraisers.

Obama's campaign said Wednesday it canceled or postponed 10 fundraisers involving the president, Vice President Joe Biden and White House chief of staff Bill Daley in the past month because of the debt talks, scrubbing events in California, New York and elsewhere.

Only weeks after the president's campaign reported collecting a combined $86 million with the Democratic National Committee, Obama's team is trying to lower expectations about its fundraising juggernaut while signaling to its army of volunteers and activists that they need to fill the void. Obama is coming off a bruising battle with congressional Republicans over raising the government's debt ceiling and is expected to face a formidable challenge from Republicans in 2012 against the backdrop of a weakened economy.

"We're going to raise significantly less in the third quarter than we did in the second quarter," said Jim Messina, Obama's campaign manager. "We will not be able to replace all of these events just because of his busy schedule. We always knew that he had his job and we had to do this around his schedule, and the truth is we just have to deal with canceling a month's worth of events."

Political fundraising operations typically slow down in the summer because many donors are on vacation and high-dollar events don't usually resume until after Labor Day. During his first presidential campaign, Obama raised about $21 million in the summer of 2007, compared with about $33 million in the spring of that year.

Messina said the campaign had not yet set a revised goal for the current fundraising period ending Sept. 30 but would urge "grass-roots fundraisers" to step up their efforts in the weeks ahead. The campaign has emphasized its large donor base - more than 550,000 people gave money during the spring - and it plans to lean heavily on small donors in August and September.

"We're going to be very aggressive in trying to find ways to engage the grass roots," Messina said. "We always said ... they're the biggest piece of this and they own the campaign and we're about to give them an even tougher assignment."

Obama signed legislation on Tuesday to raise the debt limit and avoid a government default, but the negotiations kept him in the Washington area for the past month. Obama's last fundraiser was in Philadelphia on June 30.

The campaign said the debt talks required Obama to cancel two fundraisers in Southern California and events in Northern California, Seattle, New York and Washington, D.C. Biden had to skip fundraisers in Atlanta, Nashville, Tenn., and Dallas, while Daley canceled an event in the nation's capital. Obama's fundraiser in New York at the home of film mogul Harvey Weinstein is expected to be rescheduled for this month, while Biden's events are being rescheduled for the fall.

Obama is keeping his schedule on Wednesday, attending two fundraisers in Chicago to celebrate his 50th birthday, including a concert with Chicago natives Herbie Hancock and Jennifer Hudson and the Chicago rock band OK Go. Obama turns 50 on Thursday. Interestingly, it seems Obama will likely be the youngest contender in the 2012 race (pending others jump into the ring later on). Bloomberg has more on the birthday celebration and its benefits to the campaign:

The concert and dinner for more than 1,000 donors will be at the Aragon Entertainment Center, a Spanish-style concert hall on the city’s north side that can accommodate up to 4,500 people. Ticket prices range from $50 to the legal maximum of $35,800.

The money will go to the Obama Victory Fund 2012, a joint Obama campaign and Democratic National Committee fund, according to a Democratic official who wasn’t authorized to discuss the event and spoke on condition of anonymity. Obama’s campaign can accept $5,000 of each $35,800 contribution.

Republicans have accused the president of emphasizing campaign money over governing, criticizing plans for the lavish birthday party.

"With 9.2 percent unemployment, he could work on creating jobs, but I suppose the White House is thinking he should stick to the part of his job he really likes," Republican National Committee spokeswoman Kirsten Kukowski said.

As part of Obama's birthday events, Democratic officials and campaign aides are fanning out across the country for fundraisers: former White House press secretary Robert Gibbs and deputy campaign manager Jen O'Malley Dillon will be in Boston, White House adviser David Plouffe will be in Tampa, Fla., New York Gov. Andrew Cuomo will headline a New York City event and Obama campaign adviser David Axelrod will be in Los Angeles. Other events with Democratic surrogates will be held in Austin, Texas; Oakland, Calif.; and Washington, D.C.

Besides the birthday fundraisers, the campaign is planning hundreds of house parties around the country and has asked supporters to recruit 50 new supporters for the president's birthday.