Lundergan to consider $500,000 bank loan

I don't get this. After all the fundraisers last year in every district, the party needs a loan? I was critical of Lundergan from the start. But he's the chair and I accept that. The fact is, no one wants to give money to the party while Lundergan is chair. Given his past, I understand that.

The Kentucky Democratic Party is working on taking out a half-million-dollar bank loan to boost its finances before the November election.

But many members of the party's state central committee -- the governing body that must approve any such transaction -- have been hesitant to give their blessing until they know exactly how that money would be used.

Committee members were being polled by phone yesterday.

"I have not cast my vote yet," said Steve Gold, committee member from Henderson. "I have a couple of calls in to folks on the finance committee to find out more about it. Obviously that's a lot of money."

Several others, including Betty Roth of Burlington, also said they wanted more information.

An infusion of $500,000 could help the party back its candidates as the Nov. 7 election nears. Much or all of that money could be paid back with proceeds from an Oct. 24 fund-raiser in Louisville, featuring former President Bill Clinton.

David O'Neil, chairman of the Fayette County Democratic Party, said many still have questions about how the loan process would work.

"I kind of understand the strategy for needing the money," said O'Neil, who sits on the central committee but does not vote. "But I would be curious to see the legality of a state party taking out a loan that might be signed for by one person."

For example, if the party defaults and that one person is liable, $500,000 is well more than the state contribution limit of $1,000, he said.

Democratic Party Chairman Jerry Lundergan wouldn't comment on the loan proposal.

"We don't discuss our internal affairs. Our strategy is in place, our plan is in place," he said.

When asked about the party's financial health, he said. "I think the party is doing very well -- financially sound."

Come May or June 2007, a new chairman or chairwoman will be in place.