Carly Fiorina still owes debts from 2010 campaign POLITICS

California Republican Senate candidate Carly Fiorina addresses supporters in Irvine, Calif., Tuesday, Nov. 2, 2010. California Republican Senate candidate Carly Fiorina addresses supporters in Irvine, Calif., Tuesday, Nov. 2, 2010. Photo: Reed Saxon, AP Photo: Reed Saxon, AP Image 1 of / 1 Caption Close Carly Fiorina still owes debts from 2010 campaign 1 / 1 Back to Gallery

The campaign of Carly Fiorina, the millionaire former CEO who spearheads a national Republican senatorial fundraising campaign, owes nearly $500,000 to people who worked on her failed 2010 California Senate run.

Fiorina, who received a $21 million severance package when she was fired as Hewlett-Packard's CEO in 2005, has a combined net worth with her husband Frank of between $30 million and $120 million, according to financial disclosure statements filed in connection with her Senate run. She owns residences in Sausalito and Washington. Last month, she became a regular contributor on financial issues to the cable network CNBC.

But after contributing $5 million to her Senate campaign, the first-time candidate has not tapped her wealth to take care of unfinished political business in California.

Her campaign owes $492,606 to more than two dozen individuals and businesses, many of them California's top political and financial consultants, according to a Federal Election Commission document covering the most recent filing period, which ended March 31.

While political campaigns frequently have campaign debt that lingers after the votes have been counted, this debt has lingered longer than usual. A candidate often will hold fundraisers within six months, while the embers of the campaign are still glowing to potential donors.

But according to several people owed money, there has been little communication about how or when the debts will be paid.

That could bode poorly for the high-profile Fiorina, who was appointed last July as vice chairwoman of the National Republican Senatorial Committee, which recruits and raises money for Senate candidates. After she endorsed Mitt Romney in March, the presumed GOP presidential nominee said he looked forward to her counsel.

Argument revived

Fiorina's political opponents seized on the news to reprise the main argument made against her during the Senate campaign: More than 30,000 workers were laid off during her CEO tenure.

"This is someone who became rich laying off thousands of American workers and outsourcing jobs overseas," Matt Canter, a spokesman for Democratic Senatorial Campaign Committee. "Frankly, it's not the least bit surprising that national Republicans should make her the poster child for their agenda."

Among those owed money is a Sausalito political consulting firm run by the late Joe Shumate, a widely respected GOP consultant, who is owed $30,000.

When he died in October, Fiorina wrote that Shumate "was an integral and senior member of my team and I am honored to have been able to call Joe a trusted adviser and friend, and to have earned his respect and confidence." Those who attended Shumate's memorial service remarked how movingly Fiorina spoke of her friend.

Campaign manager Marty Wilson, who is owed $60,000 by the campaign and does not plan to waive his fees, said "there is a plan in place" to retire the debt. But no fundraisers are scheduled.

"Carly realizes that we're going to have to go out and raise this money, and fully intends to get that process under way," said Wilson, who was speaking for Fiorina as the campaign's manager. He blamed the delay on the recent primary campaign and other political activities.

$5 million in primary

Fiorina has no plans to write a check to clear the debt. If she hadn't invested $5 million of her own money in the 2010 GOP primary, Wilson and other analysts say, she may not have been able to vault over former South Bay Rep. Tom Campbell, who was leading in the polls.

"It's easy for somebody else to suggest how somebody spend their money," Wilson said. "But had she not spent that money, the primary could have easily gone the other way."

The reason for the outstanding debts is rooted in the last few weeks of the race. Incumbent Barbara Boxer was considered vulnerable, with less than 50 percent support in voter polls. On Oct. 20, RealClearPolitics.com, a nonpartisan website that averages major polls, said Boxer's lead was "down to a point."

Fiorina's team went for it, spending $2 million on TV ads. She lost by 10 points.

"It was a calculated move on our part - and when I say our, I mean me," Wilson said. When asked if Fiorina was in agreement with that plan, Wilson said, "Whether I got that granular with her to tell her what the debt situation was before we made the final media buy or not was, I don't recall."

Among those waiting to be paid are a political and communications consulting firm run by Beth Miller, which is owed $20,500, according to Federal Election Commission documents. Meridian-Pacific, one of California's most prominent political consulting firms, is owed $55,657.