Readers aware of the recent Libertarian National Committee decision to attempt to borrow against its assets may wonder what the financial issues are. Why does the LNC need the money? The LNC Financial report for May, covering through the end of April, makes matters clear. The LNC faces serious financial difficulties.
The LNC had a budget for this year totally 2.47 million.
For the first third of the year, LNC income fell nearly 30% short of budget. LNC income was $510,000 of the budgeted $710,000, a shortage of $210,000. In contrast, the 2020 budget had $520,000 as income to date. January-April 2022 income thus roughly matches the January-April income from two years back.
The LNC did trim its spending, relative to budget, for the first four months of this year. The LNC spent $105,000 for fundraising and $523,000 for other operating expenses, a total of $628,000, leading to a deficit of $118,000 so far this year. Major spending cuts so far this year, spending relative to the budget, include $53,000 for compensation, $30,000 for candidates, campaigns, and initiatives, $15,000 for administrative costs, and $11,000 for membership fundraising.
Unfortunately, those cuts have still led to a budget deficit for the first third of the year of $118,000. Having noted that income so far this year roughly matches 2020, when the budget was approximately in balance, once asks where spending has been increased relative to 2020. Compensation is up $63,000, candidate/campaign/initiative spending is up $42,000, and ballot access is up $58,000.