Cash-strapped Perry campaign no longer paying SC staff

After weeks of sub-par fundraising, the presidential campaign of former Texas Gov. Rick Perry has stopped paying its staff in South Carolina.

Three aides in the Palmetto State are continuing to work for Perry in a "volunteer capacity," but others have left amid the financial issues, said Katon Dawson, the campaign's South Carolina director.

"We're going to work just as hard this week as we did the week before, and we look forward to helping the governor get the nomination," said Dawson, who added he expects the campaign to "refocus on pay somewhere in September."

Strategists Walter Whetsell and Le Frye also are remaining with the campaign, Dawson said.

The development is a blow to Perry's long-shot comeback effort after a failed 2012 run. Already, the campaign had been dealing with fundraising trouble and polling numbers so low that the former governor was relegated to the second-tier stage at the GOP's first debate last week.

Perry spokeswoman Lucy Nashed downplayed the move in a statement.

"As the campaign moves along, tough decisions have to be made in respect to both monetary and time-related resources," she said. "Governor Perry remains committed to competing in the early states and will continue to have a strong presence in Iowa, New Hampshire and South Carolina."

Dawson acknowledged that Perry has struggled to raise money in a crowded Republican primary field, saying the campaign "focused more on the FOX Debate more than fundraising."

Still, he expressed optimism about Perry's prospects, particularly in South Carolina, where Perry is expected to go Thursday for a packed day of four campaign events.

"I'm still going to pick up the governor on Thursday, and I'm excited to do it," Dawson said, adding, "the governor is doing well here."

The news of the suspension in pay was first reported by the National Journal on Monday.