Former RNC official: Steele struck a deal with Michigan GOP to increase fundraising numbers, possibly to circumvent federal funding limits

Out of the 28 donors across the country who in December contributed to the RNC $30,400 — or the maximum amount that can be contributed to the committee under law — all but five had Michigan addresses.

The arrangement was not discussed with the committee’s finance director or the political director, the official said, other than Steele’s office saying, “‘this is happening, prepare your budgets accordingly.’”

“It angered people mostly that the chairman’s office would say, ‘this is happening,’ almost, ‘deal with it.’ They were not consulted on whether Michigan was worthy of that money,” the official said of both the committee’s political and finance departments upon hearing the deal was arranged without their consent.

“People were not happy about it. The department heads in the know were not happy about it.”

Hoff said she is unaware of any specific December fundraising events that could’ve also explained the large donations from Michigan donors. She did, however, say that, “many large donors at year-end make decisions on where to invest to make change happen.”

“Following Chairman Steele’s visit to Michigan in the summer as well as major GOP victories in Virginia, New Jersey and the state special senate election in Michigan, people were excited to help turn the tide and are looking for the RNC to make a big difference in Michigan this November,” Hoff said by email.

But while a competitive governor’s election is set for November, neither of the state’s senators is up for election in 2010. Asked the reason why Michigan received the most money of the states, Hoff said in an email that it is because the state GOP began their victory program “earlier than any other state in the country.” She did not return additional inquiries into the specifics of the money spent.

Michigan’s August primaries are later than other states, and the funds came when all eyes were on another election in another state. When $250,000 was disbursed to Michigan in January — the same month of the competitive Massachusetts senate special election — the Massachusetts GOP only received $42,000.

UPDATE: The RNC announced its fundraising numbers for March 2010 on Wednesday, claiming to have raised $11.4 million, a record high for a mid-cycle March. The RNC has $11.3 million cash-on-hand and no debt, according to a release.

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