Maria Cino "A Path to Victory In 2012" (Dec.-Jan. 2010)

Maria Cino for RNC Chairman
[December 2010-January 2011]

A Path to Victory In 2012
A Path To Victory In 2012 is a series of action plan drafts developed by Maria Cino in consultation with Members of the Republican National Committee to illustrate how she would lead as Chairman of the RNC and address several of our most significant challenges to be better positioned to support Republican victories in two years.
Saving the Republican National Convention
Restoring Accountability
Securing Financial Strength
Reinvigorating Voter Programs
Renew Our Technology Advantage

Saving the Republican National Convention

Once every four years, Republicans come together at our Republican National Convention to choose our Presidential nominee, recommit to our conservative values, and construct the rules by which our party will operate for the next four years.

It’s a grand, inspiring spectacle of democracy in action where, as one united party, we proudly showcase our spirit and principles to millions of Americans nationwide.

I was proud to have the honor of serving as President and Chief Executive Officer of the Committee on Arrangements (COA) for the 2008 Republican National Convention. In preparing for and managing that special event, I made sure the Committee on Arrangements was intricately involved in planning decisions, that Republicans received value for every dollar spent, that we maximized every media opportunity, and produced a Convention that was enjoyable for all RNC Members, delegates and guests, and gave our nominee the momentum necessary, as he emerged from Minneapolis-St. Paul, to run a competitive campaign.

The reviews from RNC Members were clear: We succeeded on all fronts. And, we closed the books on the 2008 Republican National Convention, after the routine, mandatory Federal Election Commission audit, successfully under budget and with a surplus.

Where We Stand Now

Recent news reports indicate that preparations for our 2012 Republican National Convention are far, far off track; in fact, we are in crisis.

Through September, its lead manager had already spent almost $640,000 in Federal Election Commission (FEC) provided dollars, the most important funding the COA has; $640,000 is eighteen times the amount the 2008 Convention had paid out at the same point.

In addition having no Convention experience, the current “RNC liaison to the Convention” added her sister and son to the payroll. Some of the extravagant expenses include spending tens of thousands of dollars on the rental of a luxurious waterfront home where the “RNC liaison to the Convention” is now living.

Because of FEC limits, this money is gone and cannot be replaced. Decisions made on the 4th floor of the RNC by current and recent leadership have already seriously limited our next Presidential nominee’s opportunity to maximize the largest media week our Party has during the 2012 election cycle to give voters our vision for America’s future.

What We Must Do Now

Action needs to be taken immediately to save the 2012 Republican National Convention. As RNC Chairman, I would take the following actions:

• Replace the current “RNC liaison to the Convention” immediately with a qualified, experienced Convention Manager.

• Immediately convene an Emergency COA Budget Committee of specially appointed RNC Members to issue a “State of the COA Report” after conducting an extensive audit that will:

Review the final site city agreement;
Review all spending to date, and FEC filings;
Interview all current staff to assess their background/capabilities, compensation, and whether they should be retained;
Review and assess all COA contracts, COA policies and procedures, and official COA documents.

•    The Emergency COA Budget Committee would present a “State of the COA Report” to the full RNC Membership within 30 days and provide recommendations for fixing what is broken.

•    Meet as soon as possible with the 2012 Tampa Host Committee and update them on the change in leadership and plans moving forward. Weekly coordination meetings would begin as soon as the new COA Convention Manager is in place.

•    Passage of a COA amendment stating no relative of RNC or COA senior staff may be employed in a paid COA staff position.

Our Long-Term Convention Focus

I truly understand that the partnership between COA Members and COA staff is crucial. Working hand-in-hand with COA Chair Jo Ann Davidson during my time as President & CEO of the 2008 Convention, our senior leadership team ensured COA Members had regular briefings and input into major planning decisions. To ensure that our 2012 Convention also succeeds in its mission to showcase our Republican ideas, values and vision to the American people, we need to expand RNC Member input. To accomplish this, I would continue to expand COA Member involvement as follows:

•    A broader series of meetings and conference calls with COA and RNC Members where COA staff provides updates and receives input. These would include project timelines, updates and progress reports to COA and RNC Members from COA staff, to allow full access for Members to ascertain Convention progress.

•    Creation of a COA Budget Committee, after the appropriate actions by the Emergency COA Budget Committee, with oversight of expenditures and continual budget updates from COA staff to track expenditures.

•    Reorganize COA subcommittees to more closely fit the organization of the COA, ensuring adequate subcommittee oversight of staff activity while eliminating duplication.

•    Better coordination between COA Members and staff, the RNC Political Staff and COA Delegate Services to ensure consistent delegate communication.

Finally

With more RNC Member input and oversight, it is very likely that the 2012 Republican National Convention would not have been able to squander vital resources. The next RNC Chairman must rely on the RNC Membership to capture and understand exactly what has transpired to date, recommend actions to overcome past mistakes, and provide their expertise for a full recovery of our national showcase.
These reforms should be enshrined within the RNC rules.

Restoring Accountability

As RNC Members, you devote great time and effort in service of the Republican Party, and take your responsibilities very seriously. You know the RNC is the steward of our party’s reputation and of donor contributions, large and small. Your foremost interest is ensuring the RNC successfully carries out its unique and crucial role supporting state parties and Republican candidates in every election cycle.

Over these past two years, many Members have learned through media reports information that was not only surprising, but also distressing.

If elected as RNC Chairman, I will ensure that Members, including Members leading specific committees, have full knowledge of and input into RNC operations, long before they reach the news media. The Chairman and all RNC staff will be accountable first and foremost to Members of the RNC. I venture that if a similar commitment to transparency and accountability had been in place, the RNC would not be more than $20 million in debt as we enter the critical 2012 election cycle.

I can make this commitment to you because my record shows I have always operated with absolute transparency during my decades of political and government leadership. Throughout my senior positions at the U.S. Department of Transportation, the NRCC and the RNC, I have developed and implemented programs and budgets effectively, with the highest integrity, and – most importantly - as a collaboration among equals.

What We Must Do

As RNC Chairman, I would take immediate action to instill the collaboration and accountability necessary to reassure RNC Members and party donors that we are worthy stewards of the party and its resources. Upon taking office I would:

Immediately conduct a SPECIAL AUDIT to assess the RNC’s financial situation. With the final Audit results, I would hold four regional meetings at airport hotels, inviting all RNC Members in each region to hear the findings and, together, discuss plans for moving forward.

Thereafter, I would hold monthly Executive Committee conference calls to update Members on the state of RNC affairs.

In conjunction with a reinvigorated RNC Budget Committee, I propose creating a two-year budget cycle so that RNC fundraising and budget plans match the federal election cycle. This will improve our overall planning and allow us to better match fundraising goals with projected resource requirements. The Budget Committee will receive timely, accurate and transparent financial information and have, at minimum, quarterly meetings.

Invest in hiring a professional CFO to restore our financial credibility with Members, donors and vendors. The RNC is a large corporation and a professional CFO will ensure that, as we renegotiate and payoff the tremendous debt our Party faces, the terms and conditions are both reasonable and feasible. A CFO will also bring the expertise needed to update and modernize accounting systems, the necessary backbone for financial reporting and accountability.

We must improve contract management. To do that, I will ask the Budget Committee to set a threshold level for “major contracts.” Then, they can oversee a competitive bidding process and approve those contracts of a large magnitude. This should also include line of credit and borrowing agreements.

As I have done throughout my career, I will identify and recruit only the most talented professionals and build a successful, cohesive team. We will be accountable to RNC Members first and last, and will deliver the highest results while adhering to the highest ethical standards.

Finally

As Chairman, I will work with you to continually search for and find the most effective, efficient ways to spend our money and leverage our resources. To win the White House, a Senate Majority and expand our House Majority we need a lean, organized and tight operation. President Obama will raise a billion dollars. We need an effort that is similarly effective and focused, that’s why I will ensure that RNC Members are fully informed and briefed on the actions of the committee.

Under my chairmanship, the RNC will become a professional organization, accountable to the Members of the RNC, with constant collaboration to ensure election victories and success.

Securing Financial Strength

I
In the words of Ronald Reagan, “Status quo...is Latin for ‘the mess we’re in.’”

The candidates for RNC Chairman know our financial status quo, and all promise to raise the funds needed to pay down our crippling debt and prepare for the 2012 elections. I offer more than promises: I offer definitive, proven proposals for how I will work with you to do it.

In 1993, when I became Executive Director of the National Republican Congressional Committee (NRCC), the NRCC had record debt of nearly $5 million. Republicans were the Minority Party in the U.S. House, and we had just lost the White House for the first time in 12 years. The NRCC had stopped prospecting its direct mail donors months earlier and had very poor terms on a line of credit. The plan outlined below is how I righted that ship and reflects the lessons I learned from the experience.

Unlike the other candidates running for Chairman, I have faced dire financial situations before, and many of the systems and programs implemented at the NRCC in 1993 are still working well to this day. You might also recall the historic 1994 victory that was a direct result of our NRCC plans in the 1994 cycle.

The RNC’s ever-growing loss of major donors has been a consistent, disturbing theme over the last two years. As a result, the RNC has become increasingly dependent on small dollar, direct mail contributions, nearly doubling the cost of every dollar raised. In 2008, it cost 40 cents to raise $1.00; in 2010, it cost between 70 and 80 cents.

If the RNC is to pay off its debt and prepare for the 2012 campaign, we must reverse this trend and lower our fundraising costs. We must win back our major donors by restoring their confidence and give them reasons to once again support the RNC.

What We Must Do

I know that a majority of the RNC Chairman’s time should be spent fundraising. This doesn’t mean showing up for RNC events and making speeches; it means being on the phone daily, and traveling as needed, to reconnect, rebuild and expand relationships with major donors.

I have raised tens of millions of dollars for the party, candidates and committees in my career, and have close relationships with major donors. I have the vision and experience to develop and implement effective plans that will restore the RNC to its historic position as a respected, effective organization that helps candidates win elections. Chief among those plans are my ideas for rebuilding our financial strength through robust fundraising, efficient finance operations, and a realistic debt retirement plan.

REBUILD AND REINVIGORATE FUNDRAISING

Two National Finance Co-Chairmen

Appoint National Finance Co-Chairmen---two high-profile, aggressive fundraisers who will work hand-in-glove with my fundraising efforts as Chairman and with the RNC National Finance Committee;
I will appoint Finance Co-Chairs who not only will have an understanding of what is needed to regain the trust of our lapsed donors, they will also bring a fresh approach to attract new donors;
The Finance Co-Chairs must also be neutral in the upcoming 2012 Presidential election cycle.

Regional/State Finance Chairmen

Develop and recruit six Regional Finance Chairmen to cover the entire country and work closely with state and regional leaders;
Each Regional Chair will be responsible for recruiting a specific number of new major donors and raising a specific donor amount. Each will be expected to assist in building an infrastructure that can reach into the greater donor community;
We will set 2011 goals based on traditional Republican giving by state in a Presidential cycle.

RNC Finance Department

Restructure and reorganize the Finance Department to ensure that the right people are in the right jobs, reduce consulting fees and commissions;
Appoint a professional, proven Finance Director to work directly with the RNC Chairman, Finance Co-Chairmen and Regional Chairmen, and oversee program directors;
Appoint one director to oversee all donor programs, with limited staff assistants to assist with maintenance of donor groups, until programs grow to justify additional program directors/staff;
Use fundraising consultants only when absolutely necessary to assist the Regional Co-Chairs in meeting their goals.

Major Donor Programs

The major donor programs’ structure needs to be refreshed and rebuilt so we return at least to past levels, when 20 percent of RNC funds came from major donors at an average cost of 40 percent. Compare that to current levels where major donors contribute only 10 percent at an average fundraising cost of 80 percent.
I will personally and immediately reach out to every lapsed major donor to enlist his or her support in helping to rebuild the RNC.
Concurrently, I will work with the RNC Finance Co-Chairmen and Regional Chairmen to identify and reach out to a new, expanding major donor pool who will be solicited to take part in rebuilding the RNC.

Direct Mail, Phone and e-campaigns

The RNC’s cost of fundraising has skyrocketed due to reliance on the high cost methods of direct mail and phone campaigns. My first priority will be to review and re-establish a three-bid process for all fundraising vendors. We need to make sure our vendors are working with us to cut costs.
Clean up our lists to eliminate duplicates and update records. It is a waste of money to spend postage on potential donors who have passed away or have moved. This is a simple concept but it will take hard work to clean a list of this size.
Prospect and build to increase donor base. We have rarely had a more opportune time to turn persuadable voters into donors. Assess cost-benefit of direct mail, recognizing its high cost due to attrition and the need to continually invest in new donor prospecting.
Transform the Chairman’s Advisory Board and President’s Club low dollar donor programs into a mail-only program, raising money around special circumstances or events (i.e. inauguration, convention, gala events, etc.).
Better coordination is critical for all of our direct mail, phone and social media/e- campaigns. I will institute weekly meetings to discuss approaches for the next three weeks ahead to save costs and ensure appropriate timing between direct mail, phone call and e-campaigns. Currently, there are expensive, duplicative efforts.
We also need to target donors appropriately. For example, major donors are generally older and respond better to mail, but direct mail to younger donors, for example those under age 45, may be a wasted expense because this group responds better, or only, to e-mail.
The use of technology is the future of fundraising for the RNC. I will make it a priority to utilize all forms of technology to reach every potential donor. To that end, I will institute a special program to solicit ideas and potential programs from the brightest minds in the country to try cutting edge technologies in fundraising.

Joint Fundraising Agreements and Efforts

Ask all 2012 Republican Presidential candidates to designate one giver/fundraiser to assist the RNC’s finance efforts. The RNC Finance Co-Chairmen will lead this group, with the goal of retiring RNC debt and fully funding the Presidential Trust account by the end of the presidential primaries. We cannot wait for a nominee to help raise Presidential Trust money; that will be too late.
Establish joint State Victory Accounts, and empower Congressional Leadership and Governors to raise money for the RNC and State Victory Programs.

IMPLEMENT A DEBT RETIREMENT PLAN
We must be realistic and creative. The key to cutting the debt while also attracting major donors to return to the RNC is to cut costs, streamline the operation, and show that the RNC is using a comprehensive approach to raising dollars at all levels. No one wants to donate to debt. We must prove to people that they are making an investment in the future of the Republican Party. The initial steps include:

Institute and live by a two-year budget, as I outlined in my Accountability Paper
Renegotiate loan and vendor debt to pay off 75 percent in 2011
Right size the RNC organization, reduce staff and maximize use of technology to reduce headcount and expenses
Limit the number of consultants and make all contracts incentive based
Explore opportunities to reduce costs by contracting for unique or specific services

We may also consider a new structure to maintain and manage our voter list. List maintenance currently costs between $10 and $20 million annually. Similar to what the DNC has done with its Catalist program, the RNC might consider a lease back arrangement with an outside 501(c)3. While we will never relinquish ownership of the list, we may achieve significant savings and free-up valuable hard dollars for other programs.

Finally

These are my recommendations and I welcome your thoughts and proposals; your commitment and experience means this a team effort. Together, we will take the essential steps to assure donors that we are serious about rebuilding strained relationships, and we are wholly focused on fixing what’s been broken.

Support State Parties and Reinvigorate Voter Programs

First, a few facts:

Between 2003 and 2004, the RNC registered 3.4 million new voters and brought them into the political process. President Bush won re-election by 3.5 million votes in 2004.
For the 2004 election, the RNC developed and implemented a 72-hour GOTV deployment program that sent over 6,000 volunteers to over 30 states during the critical final hours before Election Day.
In 2000, the RNC unleashed a grassroots Victory effort that won key states like Colorado, Florida, Missouri, Ohio and Virginia, and made the margin of difference in George W. Bush’s victory over Al Gore.

These facts have at least three things in common:

They represent the difference between victory and defeat.
They required effective nationwide planning, budgeting and implementation.
They were all efforts I led as RNC Deputy Chairman for Political Operations in 2000, and RNC Deputy Chairman in 2003-2004.

Like most of you, I have been concerned as much by what the RNC has not done during these past two years as by what it has done. There has not been an aggressive, nationwide voter registration program; and key state Victory Programs were either insufficiently funded or poorly executed.

Repeating this lack of strategic focus will cost us dearly in the future. While the 2012 primary season unfolds, the RNC must be building the grassroots infrastructure our nominee will need to mobilize his or her general election campaign against a well- funded, well-organized incumbent president. This is something only the RNC can do.

In my “Rebuilding our Financial Strength” paper, I outlined how to ensure the RNC has the money needed to win in 2012. Here, I propose that we should spend that money on programs that are the core of what the RNC should do every election: Party building and voter mobilization.

Our conservative philosophy holds that government closest to the people governs best. This holds true for our party structure as well. I have worked for and with the RNC and Republican candidates for thirty years and know we must rely on state leaders and state parties, because they are closest to the voters and know best how to win their states.

We can unite like-minded voters under the GOP banner, building alliances with grassroots movements that agree we must protect our country against tax-and-spend Democrats by electing fiscal conservatives to state and federal office.

What We Must Do

We haven’t a minute to lose and a lot of ground to recover. If elected Chairman, I will join with state party chairmen to begin this work immediately:

Consult and plan with state parties

Request state parties and territories to submit, in April 2011,18-month Victory Plans with their expected needs for the 2011/2012 cycle. Then we will work with state parties to develop monthly milestones. Our credo will be: No one shall fail.

Establish joint state Victory accounts to raise the money necessary to establish and fund successful state party Victory programs.

Implement Victory pilot programs in 2011 in Kentucky, Louisiana, Mississippi, New Jersey and Virginia for gubernatorial and state legislative races.

Provide necessary grassroots resources

Enhance and create state of the art Voter Vault with accurate, updated, valuable data.

Implement a dedicated nationwide voter registration effort, and expand the Party by bringing in new voters that share our values and beliefs.

Reinvigorate and update the 72-hour GOTV program, with enhanced absentee programs and newly developed early voter programs to match the new reality of “Election Days” that last for weeks.

Conduct national training and deploy a new generation of grassroots GOTV campaign and fundraising activists.

Institute more structure in field operations, with earlier ground efforts and additional volunteer and resource support.

Develop and implement solid coalition plans that educate and energize our traditional conservative base for Republican candidates in 2011 and 2012.

Finally

As RNC Committee Members and dedicated activists, you know, as I do, that winning campaigns comes down to grassroots resources and boots on the ground. The Democrats will be formidable and well organized in 2012, so it’s not the time for on-the- job national voter program training at the RNC. I have proven experience developing and leading state and national programs --- and leading them to win.

Reclaim and Renew our Technology Advantage

Not very long ago, our Grand Old Party could have also been called the Grand New Party --- because in the early years of the 21st Century the RNC was the undisputed leader in developing and using new technologies to identify, recruit and mobilize voters.

We have lost our edge. The Democratic Party is outperforming the Republican Party in online giving, social networking, and blogger outreach. The RNC must now incorporate the lessons from the Tea Parties and our Party’s best and brightest, which won in 2010 in part by embracing the Internet and using innovative new online tools and tactics.

To win back the White House and Senate in 2012, we have to surpass the Democrats’ use of technology. We have to talk to voters the way they talk to one another: online and on the air. We must not only reclaim the advantage we once held, we must renew our approach, our tactics and our tools.

Rather than offer a narrow, 2011 prescription, as RNC Chairman I will propose developing a long-term infrastructure that will encompass and adapt to new technology and tools in 2011, 2012 and beyond.
This is because we have to do more than catch up on social networking; we must prepare to engage a new generation of voters on mobile devices and social networks. All of our data and messaging must also apply to online advertising and new digital transmission opportunities as they emerge.

We have to act like any private sector corporation, which invests in research and development to build and retain a competitive edge. We have to leverage the RNC’s infrastructure and scope to develop and then deploy technology tools for use by our gubernatorial, presidential and congressional nominees, and by state parties in their Victory Plans, fundraising and GOTV efforts.

What We Must Do

The ultimate goal of all RNC technology investments is to convert our dollars and the efforts of volunteers and staff into real world results: Increased voter registration, turnout and election victories. To reach these goals, I will work with RNC Members on a three- fold proposal to invest, integrate, and innovate.

Invest

First and foremost, we must renew and expand Voter Vault with proper investment and updated architecture that reflects the latest technology.
An effective, overall technology infrastructure for the RNC requires long term planning, funding and management. The current process does not reflect the realities of the business world and best practices.
We should gather teams of contributors including RNC members, field operatives, state party staff, technology industry leaders, and a cross section of vendors to assess the current best industry practices and develop our roadmap for the future.
We will then create a deployment plan and budget to make that roadmap a reality.
To fully leverage our investments, we should then consider designating regional liaisons–a team of digital experts–to train, build and augment state party efforts.

Integrate

Our technology platform must be horizontally and vertically integrated.
Horizontal integration means eliminating stovepipes and ensuring that fundraising, political, strategy, and coalition operations across the RNC are working from the same data. We must emulate this basic best practice of top performing businesses.
We must also achieve vertical integration by ensuring the RNC’s technology platform reaches all states and territories – to put tools and data in the hands of everyone doing the Party’s work.

Innovate

The RNC’s technology expenditures should, to put it simply, get the best bang for the buck.
To that end, I will also propose creating a volunteer team of RNC members, field staff, state party staff and technology industry leaders to continually assess the end results of our technology efforts, to coordinate with state parties on technology needs and opportunities, and constantly seek new, more effective and efficient tools.
To ensure transparency and impartial advice, members of this team would be required to sign conflict of interest agreements.

Finally

Throughout my thirty years working in campaigns, at party committees or at the highest level of large, complex organizations, I have learned first hand that every year brings a new technology revolution. This is a hallmark of the creativity and entrepreneurship of our great country. The RNC must invest, participate and lead technology revolutions in voter and donor contact and outreach, to ensure we can elect the conservative leaders that will protect our families and reduce the size and scope of government.