DNC unfazed over convention budget

WASHINGTON --Mayor Thomas M. Menino may be concerned that Boston will fall short of its $49.5 million budget for the 2004 Democratic National Convention, but the Democratic National Committee is confident it will end up with the necessary money.

Menino, the convention's host mayor, said last week that financially ailing state and local governments may not be able to provide their expected $17.5 million share of the overall cost.

But a committee spokesman said yesterday that much of that money is already accounted for by contributions from other sources.

Of the possible shortfall, $10 million alone is budgeted for security, the bulk of which Democrats expect will ultimately be paid by the federal government.

"Who knows what the actual cost for the security will be," said DNC spokesman Michael Meehan. "The burden will fall to the Homeland Security Department, the state, and the city to cover that cost."

Meehan said he expects the event to be designated a "national security event," which would shift most of the cost to the federal government.

At the 2002 Winter Olympic Games in Salt Lake City, which were operated under that designation, the US Treasury paid $250 million of the $310 million security bill.

Another $3.95 million in the potential shortfall would cover insurance, a cost that has already been shifted to private revenue sources.

When the Democrats picked Boston as convention host, they cited the city's landing pledges for $20 million from private companies as a key element. Since then, companies have pledged an additional $2 million, which will be tapped for insurance. The source of the remaining $1.95 million for insurance has yet to be identified.

The city is also budgeting $12 million in private, in-kind contributions for services such as telecommunications.

That leaves the government contribution to the budget about $5.5 million out of balance, 16 months before the gavel falls on July 26, 2004. Party officials say they are not concerned about closing the gap, even after having found themselves millions short just weeks before their 2000 convention in Los Angeles.

Underpinning much of the committee's confidence is the fact that the Republican National Committee also will stage its convention in the same economic circumstances. Any federal money that President Bush helps win for his party will have to be matched for the Democrats, they say. The Republican convention will be held in August 2004 in New York.

"These are two events that have to happen," Meehan said. "They have to be secure, and a lot of people want them to come off right, so we're confident the money will be there."