Sanders' spending surges in Iowa

Bernie Sanders more than quadrupled his spending in Iowa during the third quarter, pouring almost a half-million dollars into the state.

He still falls short of U.S. Sen. Ted Cruz, a Texas Republican, and former Secretary of State Hillary Clinton in terms of total spending this cycle, but Sanders' third-quarter spending represents a surge for him as he continues to challenge Clinton for front-runner status in the race for the Democratic nomination.

“The second quarter was when we actually started the campaign,” said Robert Becker, Iowa campaign director for Sanders, a Vermont U.S. senator. “So we’ve gone from the first of June, I think we had three organizers on the ground here and one office. Now we’ve got I think 73 people on the ground and 21 field offices. So it’s a natural progression of the growth of the campaign.”

Clinton boasts a similar Iowa footprint in numbers of staff and offices, plus 100 part-time "fall fellows."

In the second quarter (April through June), Sanders’ campaign spent just $106,448, compared with $477,115 in the most recent quarter (July through September). That’s according to a Des Moines Register analysis of itemized reports that campaigns filed with the Federal Election Commission.

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Jessica Vandenberg, an Iowa-based Democratic operative, said it’s helpful to look at how campaigns are spending their money — not just at how much.

“You have to have staff,” she said. “Sometimes that’s actually what helps you win at the end of the day."

Staff members are needed on the ground in Iowa to help identify potential supporters and persuade them to turn out on caucus night, she said.

"You have to have people willing to show up," Vandenberg said.

Sanders has spent a total of $583,563 in Iowa for the duration of his campaign. That includes more than $125,000 on payroll, about $83,000 on rent and about $10,000 on lodging and hotels.

The growth in spending coincided with a slow rise in the polls. The most recent Des Moines Register/Bloomberg Politics Iowa Poll showed the gap between Sanders and Clinton at 7 percentage points, with Clinton at 48 percent and Sanders at 41 percent. Sanders was up 6 points from an August Iowa Poll. (The Real Clear Politics rolling average of polls in Iowa shows a much wider spread of 24 points.)

The other big factor affecting the money landscape this cycle is spending by outside groups.

Sanders claims he is one of the only candidates without support from a super PAC, which can raise and spend unlimited amounts of money on behalf of candidates. But one group that is unaffiliated with Sanders, the National Nurses United for Patient Protection, has spent $569,169 supporting him, according to the Sunlight Foundation, which tracks money in politics.

So far, the largest super PAC supporting Clinton, Priorities USA Action, has spent little on her behalf,  just $357,170 nationally and $53,872 in Iowa. The majority of that went toward a series of television ads.

But Priorities USA has a big war chest waiting if it thinks she needs it: $15.7 million raised in the first half of the year alone, and much more since, according to news reports.

“I mean again, when you look at the framing of this," Becker said, "we’re talking an opponent that ran statewide here eight years ago, who started her campaign here four months before we did, that outpaced us money-wise throughout the summer, has virtually all of the Democratic sort of establishment support, multiple super PACs doing her bidding. And it’s been us, our organizers and Bernie Sanders.”

Other spenders

Close behind Sanders in third-quarter spending in Iowa was Cruz, who spent $457,866. Combined with the previous quarter’s expenditures, Cruz is the top overall spender in Iowa, dishing out about $1.2 million here.

The large majority of that, more than $1 million, has gone to a call center in Brooklyn, Ia., for fundraising phone calls. Another $57,000 went to consulting services and $15,000 to hotel costs.

Clinton’s campaign has spent a total of $813,716 in Iowa, according to the filings. However, those filings give a limited picture. They do not appear to include staff payroll or television ad buys.

Dave Nagle, a former Democratic U.S. congressman from Iowa, observed that in this state, it’s not just about spending. You have to spend to establish a solid organization, he said, but that in itself isn’t enough to win.

He cited Republicans Bobby Jindal, governor of Louisiana, and Scott Walker, governor of Wisconsin, who both benefited from super PAC spending but have quit the race.

“Both of them dropped the dollars and didn't move the numbers. And they’re out," he said. "That kind of proves the worth of Iowa and New Hampshire. We’re all worried about the impact of Citizens United, and it turns out that in Iowa and New Hampshire, it’s still a lot about shoe leather.”

Citizens United was the 2010 U.S. Supreme Court ruling that allows corporations and unions to spend unlimited amounts urging the election or defeat of candidates.

Two of this cycle's top-polling Republicans have spent relatively little in Iowa from their own campaign funds. Businessman Donald Trump has spent $289,320, and former neurosurgeon Ben Carson, $164,460.  Both men — Trump in particular — have benefited from free television exposure as a result of their front-runner status this fall.

“The Sanders campaign is correct that they have to make money to establish that they’re viable for a national campaign. And they’ve done that,” Nagle said. “And you have to spend money on resources, and they’ve done that. But the final chapter on this one — and on the other side — won’t be written until you get to two, three weeks out (from the caucus).”