Convention budget overruns pose new woes

The price tag for FleetCenter construction and event production for the Democratic National Convention could be as much as 40 percent higher than originally budgeted, forcing the party and local organizers to consider cutting back on spending or asking presidential candidate John F. Kerry to help close the gap.

David Passafaro -- chairman of Boston 2004, the convention host committee -- confirmed that contractors are submitting final cost estimates that are higher than budgeted in the contract between his group and the Democratic National Committee.

Passafaro and another convention organizer said that Democratic Party officials will have to chose whether to try to raise more money or to trim some of the production and construction plans. "We have to decide what we want to buy," said Passafaro, a former top aide to Mayor Thomas M. Menino.

"We're looking at the scope of work and at the cost side," said the host committee chairman, who would not disclose the extent of the cost overruns.

One convention organizer said that the production figure, originally pegged at $5.9 million, has exceeded $8 million and that the construction cost estimates, once pegged at $7.2 million, now top $10 million.

Passafaro insisted that the final budget is not complete and that no game plan has been developed for finding the funds or cutting back on construction and production plans for the FleetCenter. He would not comment on the options, including whether the committee will ask Kerry to pick up the tab.

Another Boston 2004 official who spoke on condition of anonymity said that local organizers feel they have met their obligations and that the decisions on what to do about the cost overruns will be up to the national party and to the Kerry campaign.

A final determination on the extra costs will not be made until May 24.

That official said the committee has informed the Kerry campaign of the potential problem. ''Clearly modifications have to be made in the program, but that is not up to the host committee," said the committee member.

The Kerry campaign did not respond to an inquiry about the budget problems.

Peggy Wilhide, a spokeswoman in Boston for the Democratic National Convention Committee, confirmed that organizers are getting figures from contractors that exceed the current budget. But she said those figures are under review, and she would not comment on steps to deal with the overruns.

One cost overrun is the media pavilion that will be constructed on a lot abutting the FleetCenter, Wilhide said.

Estimated to cost $1.5 million, the pavilion will be two stories high, have hard walls and ceilings, a roof of canvas, and enclose about 100,000 square feet. It will be removed at the end of the four-day event.

The production costs cover staging, technical equipment, telecommunications, and video displays inside the FleetCenter. The construction costs cover erection of temporary structures within the FleetCenter, plus the media pavilion. The construction is being managed by Shawmut Design and Construction.

The host committee is also facing a $4.6 million shortfall in fund-raising to meet its $49.5 million budget; $10 million of the total is to be in-kind contributions.

But Boston 2004 officials say they are confident they can raise those funds.

"As we get close to the event, people from around the country are more focused, and . . . we are confident we will make our goal," Passafaro said.

The unexpected higher costs for the production and construction could add another hurdle.

However, convention shortfalls are not unusual. Two months before the 2000 Democratic convention in Los Angeles, Al Gore appointed Terry McAuliffe, a proven Democratic fund-raiser, as chairman of the event, to help plug a $7 million budget hole. McAuliffe is now the chairman of the Democratic National Committee in Washington, D.C.