John McCain vs.... Howard Dean?

Tuesday, February 26, 2008 | 4:03 PM

By William Rabbe

Yes, it is true, Howard Dean has stepped into the fray -- Rarrrrr -- and although he can support neither Democratic candidate, he is going after Sen. John McCain on a rather technical, but important issue that needs clarification: campaign finance. It may be complicated, but the gist is that McCain used a loan to finance his campaign while his coffers were deficient this past summer -- the question is: did he promise matching funds as collateral?

Federal matching funds are subsidies given to candidates in primary campaigns if they agree to limit their spending. Recently, due to the sheer amount of money necessary to wage a primary battle, candidates have opted out of this system to remain competitive, including Steve Forbes, George W. Bush, John Kerry and Howard Dean.

If McCain has already agreed to this system by promising his matching funds as collateral, then he's nearing (or surpassed ) his spending cap -- and that spells trouble. According to the Huffington Post, McCain has spent $49 Million of a potential $54 Million cap, leaving him only $5 million to spend over the next six months. Ouch! So what does McCain need to do to be competitive in the fund war? How does he overcome this obstacle?

Well for starters, his bank and his campaign both said that matching funds were not used to certify the bank loan. But the debate ensues...

The DNC, under Howard Dean, has taken an active role in disputing this and says the Arizona Senator is playing "fast and loose with the facts". The irony here is that Howard Dean has weighed in against McCain, but also declined matching funds himself in his run in 2004 -- and the McCain camp was quick to point this out. Yet, Dean has shown that the FEC (Federal Election Commission) gave him permission to decline his matching funds, and points out that McCain hasn't received such permission. So, McCain insists that FEC permission is not necessary -- but now, FEC Chairman David Mason has asked McCain to prove he has not used the promise of federal funds as collateral and also insists that FEC permission is necessary to withdraw from the system.

So, all eyes are now on the Federal Election Commission to make a determination. The only problem is that the FEC is in limbo, with four vacancies that need to be filled for a total six members -- you can't have a majority vote with just two people.

Another complication in an otherwise convoluted debate... Stay Tuned!