McCain's Campaign To Report Debt On July 15

Sen. John McCain's presidential campaign is in debt, again. Campaign sources say that the balance sheet reported to the Federal Election Commission on July 15 will include debts of more than $1.5M, including $700,000 owed to an e-technology firm.

In the meantime, McCain plans an aggressive late-summer / early fall schedule of fundraisers to keep money flowing to the campaign. Sources said that about $1.5M per month will be allocated to all overhead costs -- staff salaries, field offices, equipment, travel -- and the rest will be saved for late-cycle television advertisements.

McCain advisers late yesterday dismissed speculation about the campaign's political plans, saying that McCain could continue to compete in Iowa, for now. The advisers did not deny reports that reducing his presence in Iowa was one option, although McCain's campaign chairman, Dave Roederer, told a reporter yesterday that he was "quite confident" McCain would mount an aggressive campaign in Iowa.

The advisers also said that McCain isn't ready to opt in to the federal primary matching fund system, just yet, preferring to wait for a few months to see if the campaign accumulates enough money. McCain's major donors were said to be outraged when former campaign manager Terry Nelson floated the matching fund possibiity during a conference call with reporters.

Finally, the campaign is bracing for the departues next week of more senior staff members.

A side note: McCain's Florida co-chair, State Sen. Bob Allen, was arrested this week on charges that he solicited an undercover police offcer for oral sex.