McCain’s campaign ponders accepting matching funds

A second consecutive disappointing fundraising quarter is leading the campaign of Sen. John McCain (R-Ariz.) to consider accepting federal matching funds in the primary, campaign manager Terry Nelson told reporters Monday.

{mosads} “Incorrect assumptions,” unpopular political stances and a tough fundraising environment were responsible for McCain’s second-quarter total of $11.2 million, the campaign said. That total is below an already disappointing first quarter, in which the senator raised $13.6 million.

What’s more, McCain only has $2 million cash on hand.

Perhaps more painfully, reports came out just before a conference call Monday with reporters that the McCain campaign will lay off about 50 staff members.

Nelson said during the conference call that the campaign incorrectly assumed it would be able to raise $100 million for the primary. Thus far, McCain has raised only $24 million and spent most of it.

The campaign declined to say what its new target for the year is.

Nelson said he will work for free for the next “few months,” going off the payroll but continuing on as a volunteer.

“We confronted reality, and we’ve dealt with it the best we could,” Nelson said, adding that the campaign still would have the resources necessary to win the early states and the Republican nomination. “We feel good about the decisions we made today. The decisions we made today were not easy. They were tough decisions.”

One of the senator’s rival, former Massachusetts Gov. Mitt Romney, who turned heads with his first-quarter rake of more than $21 million, said last week he doesn’t expect to do quite as well for the second quarter.

Giuliani raised $14.7 million in the first quarter, but reported a total of more than $16 million in receipts and more than $18 million for the cycle. The former mayor's campaign reported almost $12 million cash on hand. There have not been a lot of clues offered as to how well Giuliani will do this quarter.