Hillary Clinton’s presidential campaign removed dozens of staff from its payroll today as it prepared to operate on a “bare bones” basis.
Those retained will handle remaining press inquiries, continue debt-reduction fund-raising and handle myriad legal issues surrounding a campaign’s dying days.

Two sources familiar with the situation told The Bourbon Room that today is the last day most of those who remained on staff will receive a pay check. The vast majority of Clinton’s once-massive staff (more than 700 on payroll) were released from the campaign on June 15.

Most of those who remained will be paid through today. And no more.
“There was a wave of people let go on June 15 and there is a wave of people let go today,” said Clinton spokesman Mo Elleithee. “We are now getting down to the bare bones. The vast majority of our staff was removed from payroll on June 15.”

Another Clinton ally said the senator will keep her headquarters in Arlington, Virginia, and use it for remaining presidential campaign chores. With those almost entirely devoted to debt-reduction, the headquarters will also serve as home to her leadership PAC, HillPAC, and to lay the foundation for her senatorial re-election campaign in 2012.

In fact, Clinton is soon to revive HillPAC. She shut it down during the campaign against Obama to avoid the appearance of using the leadership PAC to dole out contributions to Democrats in early primary and caucus states.

Clinton did use HillPAC to finance some early presidential activities. Before the Iowa caucuses she accused Barack Obama of skirting campaign finance laws by sending contributions from his leadership PAC, Hopefund, to state and federal lawmakers in Iowa, New Hampshire and South Carolina.

HillPAC will be revived to assist Clinton in her efforts to raise money and contribute to other Democratic campaigns this year and in years to come — the very reason leadership PACs exist.

According to a May 31 report to the Federal Election Commission, HillPAC has $5,774 in the bank, a reflection of its many months of inactivity. So far this election cycle it has raised $186,896 and spent $212,125, eating into a previous cash-on-hand reserve of $31,005.

Clinton, according to two sources, has already decided to ask those who contributed to her general election presidential campaign consider “re-designating” those contributions to her campaign for re-election to the U.S. Senate in 2012.

Barack Obama and former President Bill Clinton talked by phone today.

Here’s the release from campaign spokesman Bill Burton:

“Senator Obama had a terrific conversation with President Clinton and is honored to have his support in this campaign.  He has always believed that Bill Clinton is one of this nation’s great leaders and most brilliant minds, and looks forward to seeing him on the campaign trail and receiving his counsel in the months to come.”

And here’s the release from Clinton Foundation Spokesman Matt McKenna:

“President Clinton had a very good conversation with Sen. Obama today. He renewed his offer to do whatever he can to ensure Sen. Obama is our next President.

“President Clinton continues to be impressed by Sen. Obama and the campaign he has run, and looks forward to campaigning for and with him in the months to come. The President believes that Senator Obama has been a great inspiration for millions of people around the country and he knows that he will bring the change America needs as our next President.”

This continues the studious courting of the Clintons by the Obama campaign. Obama’s speech in Unity, N.H., on Friday included a long pro-Hillary riff but also a good nod to the former president’s service and value on the campaign trail.

Earlier today, on MSNBC, chief Obama strategist David Axelrod said Obama and Clinton (Bill, not Hillary) could see each other as soon as this week.

The Obama campaign knows it needs to settle these waters, whether they are genuinely roiled or not. Yes, it’s true that the former president was a bit irked that he hadn’t heard from Obama. But its seems worth pointing that the onus could have been as much on Bill Clinton to congratulate Obama as upon Obama to kiss the metaphorical ring of the former president.

But the process of Unity, Level Two (or is that Level 42?) has now begun. Stay tuned.

From Obama Spokesman Bill Burton, a release on the second ad, a link and a script. In that order. Also a list of the 18 states where the ad will air.

Obama Campaign Releases second General Election Television Ad

30 Second Ad “Dignity” to Air in 18 States

CHICAGO, IL – The Obama campaign today announced the release of its second television advertisement for the general election.  The thirty second ad, entitled “Dignity,” will begin airing in eighteen states across the country today underscoring Senator Obama’s commitment to being an advocate for workers and children.

The spot highlights Senator Obama’s decision to bypass big money jobs and help lift neighborhoods stung by job loss. The ad illustrates Senator Obama’s record of working hard to move people from welfare to work, passing tax cuts for workers and providing healthcare for children.

The ad will air in Alaska, Colorado, Florida, Georgia, Iowa, Indiana, Michigan, Missouri, Montana, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Pennsylvania, Wisconsin, and Virginia.  

You can watch “Dignity” LINK

SCRIPT – “Dignity”

OBAMA:  I’m Barack Obama, and I approve this message.

Announcer: He worked his way through college and Harvard Law.

Turned down big money offers, and helped lift neighborhoods stung by job loss. Fought for workers’ rights.

He passed a law to move people from welfare to work, slashed the rolls by eighty percent.  Passed tax cuts for workers; health care for kids.

As president, he’ll end tax breaks for companies that export jobs, reward those that create jobs in America.

And never forget the dignity that comes from work.

Obama’s Communications Director, Robert Gibbs, informs The Bourbon Room that it is “nuts” and “ridiculous” for suggesting he didn’t work overtime to distance the campaign from Gen. Wesley Clark’s comments about John McCain.

“I said they weren’t our statements but the opinion instead of Clark – how is that not distance?”

The Bourbon Room is ever-dedicated to taking note of complaints lodged against it. The Bourbon Room stands by its take on this matter. But it wanted to give all visitors access to Gibbs’s objections.

Obama campaign spokesman Bill Burton just sent around this e-mail:

“As he’s said many times before, Senator Obama honors and respects Senator McCain’s service, and of course he rejects yesterday’s statement by General Clark.”

Earlier today, on MSNBC’s “Morning Joe,” Obama Communications Director Robert Gibbs did not reject Clark’s comments.

“Those are the comments of Gen. Clark and they are not the comments of Barack Obama. We certainly honor the service and sacrifice and heroism of John McCain.”

Obviously, Gibbs did not embrace Clarks’ comments, but didn’t reject them or work overtime to distance the campaign from them. Burton has, clear evidence the campaign decided it had a problem on its hands.

Also, Democrats want to point out that Col. Bud Day, now on McCain’s “Truth Squad” was a member of the Swift Boat Veterans for Truth that McCain attacked during the 2004 campaign for airing “dishonest and dishonorable” attacks against Kerry that amounted to a “cheap stunt.”

As other money-watchers have also noticed, McCains’ accepted at least $61,000 in direct and bundled contributions this campaign from three top funders of the Swift Boat Veterans, among them Bob Perry, T. Boone Pickens and Harold Simmons.

Continuing on the McCain conference call, the typically reticent Sen. John Warner, R-Virginia, took issue with Gen. Clark’s comments that John McCain’s service on the Armed Services Committee in no way prepared him for the job of commander-in-chief.

“I made a rough calculation this morning that I was in the Oval Office with five presidents where matters of national security were discussed. John McCain was with me on one or two of those occasions. John has experience that Senator Obama simply does not have. John knows how to assess risk. Many, many times he has assessed risk.”

Warner specifically noted McCain “telling President Bush he needed to put more forces into the Iraq situation based on his assessment of the risk. On that, he turned out to be right.”

Swindle also said the “Truth Squad” is necessary because, according to his estimate, half of the country either wasn’t alive or has no real memory of the Vietnam War. He said McCain’s record must be conveyed to those who don’t know much about the war or McCain’s service in it, adding that Clark’s comments were a “horrible thing to do” and Obama — by not denouncing the remarks — is not running a “civil campaign.”

And in remarks sure to aggravate the situation, Swindle and Day both said Clark’s comments were way out of bounds but questions raised by the “Swift Boat Veterans for Truth” during the 2004 campaign against John Kerry were not.

Day said the criticisms of Kerry’s war record were factual while Clark’s assessment of McCain was inaccurate. Swindle said Kerry’s Vietnam record was a relevant issue in 2004 and the Swift Boat veterans poked legitimate holes in Kerry’s war-hero biography. The Kerry campaign regarded nearly all of the Swift Boat attacks as groundless lies and the perception that his campaign failed to adequately refute them has led Obama over and over to pledge that he will not be “Swift Boated” during this campaign.

Conference call on McCain “Truth Squad” just beginning and the roster has grown dramatically.

It now includes Sen. John Warner of Virginia, former chairman of the Armed Services Committee, Col. Robert “Bud” McFarland (former National Security Adviser to President Reagan), and retired Navy Admiral Leighton Smith.

Orson Swindle started off the call by describing Clark’s line of argument as “unworthy” that left him “pretty disappointed.”

Smith said McCain’s squadron was “large and difficult to command” and while it didn’t have a major combat role was nevertheless important as a maintenance and training squadron. He said it was “inconceivable” anyone could question McCain’s fitness as a commander-in-chief due to his leadership of his Navy squadron.

Col. Day said Hanoi was the most “heavily defended city in the world” and that McCain’s willingness to fly a mission over the city speaks to his heroism and war-time grit. He called Clark’s remarks “political shenanigans.”
developing….

Moments from now, three prisoners of war who endured as much and sometimes worse than Sen. John McCain while in Vietnamese captivity will appear on a conference call to announce they are part of an emerging “Truth Squad” to deal with any future attacks questioning McCain’s fitness as commander-in-chief.

The nominal reason is to respond to former NATO Supreme Allied Commander Wesley Clark’s dismissal on Face the Nation of McCain’s national security experience: “it’s a matter of understanding risk. It’s a matter of gauging your opponents and it’s a matter of being held accountable. John McCain’s never done any of that in his official positions.” And also, this: “That large squadron in the Navy that he commanded — that wasn’t a wartime squadron. He hasn’t been there and ordered the bombs to fall.” And who can forget this: “I don’t think riding in a fighter plane and getting shot down is a qualification to be president.”

Those on the conference call include Air Force Col. Bud Day (a Medal of Honor recipient), Marine Corps Lt. Col. Orson Swindle, and retired Navy Pilot Carl Smith, who the McCain campaign says served with McCain during Vietnam.

This response from McCain, though, is really not about defending McCain’s war record or national security credentials. What it is about is seeking to undermine Barack Obama’s image as a politician unique in his aversion to partisan attacks or brass-knuckle political dialogue. That’s the brand identity McCain is obsessed with and will make every effort to challenge and undercut.

This process will commence moments before Obama, in Independence, Mo., defines “patriotism” in his terms, trying to rise above and recalibrate how patriotism has been defined in the past couple of decades and how actions rather than words and symbols could and should mean more in the on-going evaluation of who is patriotic and why.