Unkept money pledge troubles GOP convention hosts

The local committee hosting the Republican National Convention says it is disappointed the state didn't follow through on a promised financial guarantee.

In a May 21 letter obtained by the Associated Press, Jeff Larson, chief executive of the host committee, told Gov. Tim Pawlenty and legislative leaders the state's failure to offer financial backing in the event of a cash flow shortage "creates a serious risk of breach of our agreement with the RNC."

Larson asked state and local leaders to find an alternative way to fulfill the state's commitment.

As the host committee was trying to lure either the Democratic or GOP convention to St. Paul, it negotiated a package that included a state commitment to back the committee's fundraising with a letter of credit that would be executed if there's a cash flow shortage.

A bill authorizing a $39 million letter of credit in 2007 did not become law. And in the 2008 session, a smaller amount of $14 million wasn't approved.

Pawlenty spokesman Brian McClung said in an e-mail Friday that the governor had "repeatedly and directly" asked the Legislature to secure financial backing for the committee. "Those requests were rejected by DFL legislative leaders, including when the request was made during the final negotiations to close up the budget," McClung wrote. He added that the transaction was expected to have no effect on the state budget.

Through a spokesman, House Speaker Margaret Anderson Kelliher, DFL-Minneapolis, said that the line of credit was included in the House tax bill. "In the end, the House, Senate and governor's office could not reach an agreement on this issue."

Larson said the state's inaction isn't likely to have financial consequences for the convention; the previous two Republican National Conventions have had letters of credit that weren't drawn upon.

But he takes issue with the principle, writing in his letter: "Minnesotans are well known for honoring their commitments. It gives us grave cause for concern when the five highest-ranking public officials in our state are unable to make good on a commitment of this importance and significance."

Matt Burns, convention spokesman, said in an e-mail that the convention, set for Sept. 1 to Sept. 4, will be successful but it's unfortunate the state didn't meet its obligation.