Although the Republican Party of Texas State Convention has historically helped generate revenue for the Party, the most recent convention resulted in a significant financial loss.
The Party’s Treasurer’s Report, distributed to members of the State Republican Executive Committee in advance of their meeting this past weekend, included alarming financial data related to the convention.
According to the Treasurer’s Report, the convention generated $1,841,063 in revenue but cost $2,223,667, resulting in a loss of $382,614. The convention was initially expected to raise $100,000 for the Party.
The revenue generated by the convention exceeded the initial projection of $1.7 million and the projection of nearly $1.8 million that was provided to members of the State Republican Executive Committee at their pre-convention meeting on May 22.
Expenses, however, far exceeded projections. The convention was initially expected to cost $1.6 million, with that estimate jumping to over $1.8 million immediately before the convention. The total cost for the convention came in at $2,223,667. This represents a 39% increase over what the convention was initially projected to cost and a 21% increase over the cost estimate provided to members of the State Republican Executive Committee at their pre-convention meeting.
While state convention expenses may be paid from the Party’s corporate and state accounts, those accounts have been largely depleted. This forced the Party to dip into its federal account to cover some convention-related expenses that the Party’s other accounts could not cover.
This is notable as the Party can raise unlimited funds into its state and corporate accounts. However, donations to its federal account are subject to strict limitations. While donations to its federal account are the hardest to raise due to the contribution limits, only funds from the federal account may be used in connection with federal races such as Donald Trump’s campaign for President, Ted Cruz’s campaign for the United States Senate, and Congressional races.
As of June 30, 2024, the Republican Party of Texas reported cash on hand of just $45,462.77 in its state account and $9,567.99 in its corporate account.
Expenditures made by the Republican Party of Texas out of its federal account related to the 2024 state convention include a $282,495.78 expenditure to the Grand Hyatt San Antonio for facility rental on June 28, 2024, and a $207,237.67 expenditure to Pixl Productions for event production services May 1, 2024.
In 2022, the Party spent far less out of its federal account for convention-related expenses. That year, convention expenditures paid from its federal account included $147,207.23 to the Hilton Americas hotel and $42,928.11 to Pixl Productions.
By contrast, a review of campaign finance reports filed by the Texas Democratic Party did not identify any convention-related expenditures from its federal account.
The Texas Voice has extensively reported on the financial and organizational woes facing the Republican Party of Texas. Last month, we reported that the Party had 44.8% less cash on hand—amounting to almost $1.9 million—going into the 2024 general election than it had going into the 2020 general election. Additionally, the party currently operates with a staff of six employees, down nearly 90% from the same time during the 2020 presidential election cycle.
