The Republican Party of Minnesota was in rough financial shape nearly halfway through the year, having about $54 in its federal campaign account and about $336,000 in debt at the end of May.
The low cash balance raised eyebrows and alarm among state GOP activists who feared the party wasn't rebounding from being swept by Democrats in last year's election.
But the party's top leader says fundraising has picked up now that Republicans can point to the results of the recent legislative session and make the argument that Democrats overreached. A financial report filed with the Federal Election Commission on Thursday showed the Minnesota GOP had close to $200,000 in its federal campaign account at the end of June — along with about $361,000 in debt.
"It has improved markedly since people have looked at the results of the last legislative session," Minnesota GOP Chair David Hann said of the party's fundraising. "[Democrats] said they were going to return the surplus. They said they were going to cut taxes. ... None of it got done."
The GOP, which hasn't won a statewide race since 2006, will need all the cash it can get as it heads into a presidential election year in which U.S. Democratic Sen. Amy Klobuchar's seat and control of the state House of Representatives will also be up for grabs. Its counterpart, the Minnesota DFL Party, reported having about $781,000 in its federal campaign account at the end of June and no debt.
"The next few months for the Republican Party in Minnesota … are going to be the most important that they have in front of them," said Michael Brodkorb, former deputy chair of the Minnesota GOP. "They have to raise money. They have to figure out their direction."
Hann said the party's low cash balance wasn't as bleak as it looked. Political parties raise money so they can spend it, not hold onto it in their accounts, and that's what the state GOP has been doing to set its candidates up for success next year, he said.
The party is focusing its efforts on winning back control of the state House of Representatives and trying to flip the Second Congressional District seat held by Democratic U.S. Rep. Angie Craig, Hann said. While millions in outside spending poured into Craig's race last year, she has a large fundraising lead against her challengers so far this year and has shown a consistent ability to maintain a seat coveted by Republicans.
"This is a very evenly divided state and Republicans are going to be a majority party by 2026," Hann predicted.
Minnesota DFL Party Chair Ken Martin said he thinks Republicans will continue to lag in fundraising if they support candidates who make inflammatory statements and push fringe theories.
"They've taken such extreme positions that even Republicans who used to donate aren't donating anymore," Martin said. "It's sad to see this once-strong Republican Party in this state that's just been decimated. But to be honest with you, the reality is it's not surprising to me."
Unpaid bills
The Minnesota GOP's federal campaign account filing through the end of May drew national attention when it showed just $53.81 on hand.
The party's state campaign account was also low on money at the end of last year, having reported just $8,047 in cash on hand and about $76,000 in unpaid bills. By comparison, the Minnesota DFL's state campaign account showed a healthy balance of about $869,000 at the end of last year, with some $149,000 in debt.
The GOP's state campaign account debt includes an unpaid bill for last year's Republican state convention. The party still owes the Mayo Civic Center in Rochester more than $20,000 for the event.
Hann said he's confident the party will pay off all its debt by the end of this year.
"We are in the process of doing that," he said.
Filings show a number of other state Republican parties in the Midwest have healthier federal campaign account balances than the Minnesota GOP.
The Illinois Republican Party boasted close to $413,000 in cash on hand without any debt through the end of last month, while the Wisconsin GOP filing shows around $940,000 in cash with no debt. In North Dakota, the state GOP reported nearly $169,000 in its federal account at the end of last month, and also didn't have any debt.
Minnesota's Republican Party has faced setbacks and scandal over the past decade, including two years ago when former state GOP Chair Jennifer Carnahan was forced out amid allegations that she created a toxic workplace and engaged in retaliation.
Earlier this year, the Minnesota GOP took a hit when it was fined more than $100,000 by the Federal Election Commission for violations involving the 2018 and 2020 election cycles.
The state party took out a $100,000 loan earlier this year from Alliance Bank. Federal records show it has paid back $6,200 on the loan so far.
"Past leadership didn't put us in the greatest position to succeed long-term," said Dustin Grage, a Republican strategist. "And that's a tough hill to have to overcome."
Former Republican state Rep. Kelly Fenton said the party has been in worse positions in the past and recovered.
Fenton served as deputy chair of the state party in the aftermath of the 2010 election. She said the GOP spent a lot of cash that year on the gubernatorial race between Republican Tom Emmer and Democrat Mark Dayton, which Dayton ultimately won after a recount.
"It was a group effort just to uncover what the total of the debt was and to put the plan in to move the party forward," Fenton said of the work after that race. "What the party is dealing with right now, this is minimal compared to what it was back in 2011, 2012."
She said the party needs to be disciplined in its messaging heading into next year, and she urged party officials to home in on kitchen-table issues that appeal to a broad swath of Minnesotans.
"Democrats are making it more expensive to order packages from Amazon. It's more expensive to buy gas, to run a boat, to purchase a new car and tabs," Fenton said, making reference to fee and tax increases approved by the DFL-controlled Legislature. "The cost to do business in Minnesota is skyrocketing."
