Michigan GOP in Turmoil: Financial Crisis and Internal Conflict Take Center Stage
The Mackinac Republican Leadership Conference in Michigan is renowned for attracting influential GOP figures It serves as a platform for wealthy donors to engage with presidential candidates, who deliver captivating speeches to enthusiastic crowds, all while vying for a victory in the conference's influential straw poll
The Mackinac Republican Leadership Conference attracts top GOP figures to Michigan, with wealthy donors mingling with presidential hopefuls who deliver passionate speeches to enthusiastic crowds in pursuit of victory in the conference's straw poll.
As a major fundraiser for the Michigan Republican Party, the event supports efforts to mobilize voters and bolster Republican campaigns across the state.
This year's conference was noticeably unique. The lone presidential candidate in attendance was Vivek Ramaswamy, who had been polling in the single digits. The roster of speakers featured Kari Lake, who had previously run for Arizona governor but was unsuccessful; Zuby, a British rapper known for occasional appearances on Fox News; and conservative provocateur Dinesh DSouza, who ultimately did not make an appearance.
Actor Jim Caviezel, known for promoting QAnon conspiracy theories and for his role as Jesus in "The Passion of the Christ," was the main attraction of the event. He was paid $110,000 for a 25-minute speech. However, according to Warren Carpenter, a former district chair and active party member, the event was "a disaster."
The situation was a symbol of underlying issues within the Michigan state party. A CNN investigation of records and discussions with over 20 present and past party members indicates that the Republican Party in this crucial swing state is experiencing financial difficulties, internal conflict, and demands for new leadership, all less than a year before the 2024 presidential election.
Kristina Karamo, a former community college professor with little political experience, took on the role of state party leader in February. She had previously promoted far-right election conspiracy theories and pledged to reduce the party's dependence on wealthy donors. However, some pro-Trump party members who supported Karamo's election now criticize her leadership. They claim that her administration is undermining the party by failing to raise funds and causing division among party members.
Several state committee members of the party signed a petition requesting a meeting at the end of the month to discuss the removal of Karamo and some of her deputies.
"If I had known that Kristina Karamo would turn out to be such a tyrannical and incompetent leader, I would not have worked so hard to get her elected. For that, I apologize," wrote Dawn Beattie, a state committee member, in an email to fellow Republicans last month, which was obtained by CNN.
The party's finances are in a dire state, generating negative headlines in local outlets including The Detroit News for months. A recent report commissioned by Carpenter, a former party district chair, and shared with CNN, concluded that Karamo had pushed the organization to "the brink of bankruptcy." Internal records suggest the party had a net income of just $71,000 between March and November and had more than $600,000 in debt as of last month.
Warren Carpenter
CNN
Karamo, who did not respond to CNN's requests for comment, has stated that she is "course correcting" the party. She argues that when she assumed leadership, the party had hundreds of thousands of dollars in debt and had lost multiple prior elections under old leadership, despite having millions of dollars on hand. However, political consultants argue that effective state parties, which organize voting drives and local efforts, are often essential to winning close elections. For example, former President Donald Trump won Michigan in 2016 but lost to Joe Biden in 2020. A recent CNN poll shows that Trump has 50% support in the state, compared to Biden's 40%.
"You need a state party that is functioning at its best, and then you need a formidable candidate who can secure a victory," stated Doug Heye, a GOP strategist and former communications director for the Republican National Committee. "If there are any problems with either of these factors, it could be a deciding factor in a race."
A source connected to the Trump campaign described the current Michigan GOP as chaotic and showed no allegiance to Karamo, mentioning that most potential replacements were also supportive of Trump.
The real deal
Despite a Republican-led Michigan Senate investigation concluding the following year that there was "no evidence" of widespread fraud in the 2020 election, Karamo continued to assert her claims of having witnessed fraud while serving as a poll challenger, thus gaining political clout in Michigan.
She made appearances at MAGA rallies and made an unsuccessful bid for Michigan's secretary of state in 2022, making false claims such as asserting that "authoritarians" within the US believe that they can manipulate battleground election systems in order to dominate America. She continued her political ambitions by running for chair of the Michigan Republican Party, emphasizing election reform and a commitment to opposing the party's major contributors.
"According to her, we are expected to follow their orders in order to receive their financial support, which ultimately leads to the destruction of the country at a slower pace compared to the Democrats," she stated during a debate with other Michigan GOP chair candidates in January as she proposed a plan to shift towards seeking donations from small business owners and promoting local activism.
Following three rounds of voting at an 11-hour party convention in February, Karamo was voted as the chair. Her election marked a historic moment with both the Michigan Republican Party and the Michigan Democratic Party being chaired by Black women.
Many conservatives in the state celebrated Karamos ascent as a breath of fresh air.
"She seemed like the real deal," Mark Forton, the chairman of the Macomb County Republican Party, told CNN.
Since her election, the party has faced financial troubles and internal conflict. The previous budget chair stated in a June statement that the party's spending was leading them towards bankruptcy, and attempts to impose spending limits were resisted by Chair Karamo and her group of supporters.
Another budget committee member who resigned stated to Karamo that the party was on the verge of defaulting on the Line of Credit. It seems that this concern was valid, as Comerica Bank's lawyer sent a "Notice of Default" to the party last month for not paying interest on a principal amount of $509,009, according to records.
Karamo and local party leaders are now entangled in a feud of bitter conspiracy theories against each other. Some opponents claim that Karamo is involved in a malicious plot, while her supporters make similar allegations against her critics.
"Put simply, we've been betrayed. We are facing a group of individuals who are trying to undermine the MIGOP before the crucial 2024 election year. This is not a coincidence this year," Forton from Macomb County said in a statement with his vice chair, urging for Karamo's removal in November.
Ken Beyer
Ken Beyer, chair of the party's fourth district, stood up for Karamo and alleged that the party's establishment has consistently failed to back her since the start of her term. He also stated that he was informed by a source from the party's previous administration, whom he chose not to identify, that leadership permitted Karamo to become chair "because they believe they can cause her to fail sooner" than another candidate from the grassroots.
Beyer expressed to CNN, "It's as if they're causing Kristina to stumble and then pointing fingers, saying, 'Look, she fell.' They're the ones creating the problem and then pinning the blame on Kristina."
During a meeting in October, Karamo acknowledged, "Once again, this whole deep state thing is very real," as captured in a recording of the event.
Ron Weiser, the ex-chair of the Michigan GOP, explained to CNN why he believes that traditional donors have not been providing financial support to the party under Karamo's leadership. "Firstly, I don't believe she is making the effort to ask for donations, which is crucial. And secondly, even if she did, I don't think people would trust that their donations would be put to good use," Weiser stated. "We need a leader with proven experience, someone who can effectively manage the party and successfully raise the funds needed to support its operations."
Conference controversy
The annual Mackinac conference, held on an island in northern Michigan, has long been viewed as a significant driver of party morale and financial support by many longstanding state party members. This is due in part to the participation of high-profile figures, such as the attendance of five Republican presidential candidates, including Sen. Ted Cruz and former Florida Gov. Jeb Bush, in 2015.
"The Iowa State Fair is the closest thing to it, making it a jewel for our state," Carpenter noted. He described this year's event as a "disaster," citing reasons such as paid outside speakers like actor Caviezel, as presidential candidates traditionally give speeches for free or even help cover costs.
The disappointment of Ramaswamy being the only presidential candidate to attend this year was evident. Hassan Nehme, a current vice chair for the party, mentioned during a recorded panel after the conference that other presidential candidates expressed desires to attend, but Karamo and another colleague rejected those offers. "They wanted this conference to be different, so ... we weren't setting it up right," he said.
Karamo denied that her administration had not reached out to candidates during a separate meeting, calling the conference a "net benefit" but expressing a desire to have made more from it according to a recording. After the conference, a new controversy arose when a spreadsheet ranking potential volunteers as "Patriot" to "RINO" (Republican in name only) began circulating among party members.
In October, Karamo disavowed any involvement in the rankings and pointed to a "temporary volunteer" as the creator. In a recent interview, she criticized her critics as "me-firsters" and ridiculed the "RINO" faction of the party. State committee member Bree Moeggenberg, who was ranked a four, stated that the chart is indicative of a larger culture of division under Karamo's leadership.
"Moeggenberg expressed her frustration to CNN, stating, "She has disenfranchised us. She has alienated the RINOs and all sides of the establishment. She has even driven away grassroots support."
Joel Studebaker
CNN
Joel Studebaker, the deputy chief of staff for the party, admitted in an interview that fundraising has been a challenge. He stated that he believes the party has raised less than $1 million this year. When asked about the payment to actor Caviezel, he acknowledged, "Would I personally pay him $110,000? Probably not. I think it would be a lower number, but we were struggling to get speakers."
Despite this, Studebaker emphasized that Caviezel brought energy to the conference and spoke to a full audience. He likened the party's current state to a start-up organization, with his team dealing with debts and limited assets.
"We bring little political experience to the table, which we don't see as a negative. However, it does steepen the learning curve when it comes to politics," Studebaker stated. He also noted that Karamo's critics within the party are also accountable for its current condition.
"Everyone wants to blame Karamo. We have a mindset in this state, in this country, of top-down leadership. But the truth is, it's a discussion about all of us," he added.
Election on the line
"If they could cease their efforts to undermine us and redirect that energy towards assisting us with their expertise, we would be unstoppable," commented Beyer, the fourth district chair of the party, who participated in a CNN interview with Studebaker.
Election on the line
The Michigan Republican party is seen as crucial for winning the White House, providing voter outreach, donor support, and logistical help. According to Republican strategist Dennis Lennox, Michigan's shift towards battleground-leaning and Trump's support make it essential for Republicans to find a winning strategy in the state.
Karamo's critics argue that a change in leadership is needed to bring about necessary reforms. "It's not that I don't like her. What she's doing, however, is rather insidious," stated Andy Sebolt, chair of the party's second district and former chair of the state party's policy committee until his recent removal by Karamo after advocating for more transparency.
"We should have a fair opportunity to win electors for a Republican in Michigan. But with all this turmoil and division among other Republicans, that chance is slipping away," he stated.
Report contributions by Linh Tran and Kristen Holmes, CNN.
