What recession? Funds flow for Senate races

By Jeremy Pelofsky

WASHINGTON (Reuters) - The recession shadowing the United States and draining Americans' savings has hardly dented efforts by Senate candidates to raise cash for the 2010 elections, and Democrats appear ahead early in the game.

Several Democratic candidates have raised more than $1 million in the first three months of 2009, while available data shows only two Republicans crossing that threshold: Senator Arlen Specter of Pennsylvania, who faces a potentially tough re-election, and Ohio Senate hopeful Rob Portman.

While the 2010 mid-year election is 17 months away, the races are moving into high gear to suck up money as quickly as possible for a battle both sides expect to be a referendum on President Barack Obama's expansive agenda.

"Do I see Republicans raising less than Democrats, sure, because they're in the minority," said Jennifer Duffy, who tracks Senate races at the non-partisan Cook Political Report. "It's a combination of being in the minority and the economy."

Direct comparisons to previous election cycles are difficult due to changed fundraising rules. But the high cost of campaigns shows no sign of ebbing and, since Democrats control the White House and both chambers in Congress, more money is flowing their direction.

"Being the majority party has its perks and having an easier time raising money is one of them," Duffy said.

Republicans have 19 seats to defend in 2010, including Ohio, Pennsylvania, and Florida, all of which voted for Obama in 2008. Democrats have 17 to defend including that of Senate Majority Leader Harry Reid of Nevada, a key Republican target.

Reid raised $2.2 million during the first quarter and has a $5 million-plus war chest, making him a formidable opponent. Obama is going to help him raise money next month at an event in Las Vegas.

"Anyone considering running against Senator Reid should know that we will be armed and ready to run an aggressive campaign," said Brandon Hall, his campaign manager.

Democrats, who control 58 seats in the Senate now, are eager to expand their majority to 60, which would prevent Republicans from using procedural hurdles to slow or stop Obama's agenda.

OHIO, ARKANSAS IN PLAY

Another Democrat considered potentially vulnerable is Senator Blanche Lincoln from Arkansas, a state that backed Republican presidential hopeful John McCain in 2008.

She raised $1.7 million -- Vice President Joe Biden helped raise $1 million of that amount -- and has $2.3 million in the bank. A Republican challenger has yet to emerge, but several including former U.S. attorney Tim Griffin are weighing a bid.

In the contest for Ohio's open Senate seat, Portman had a promising start, raising $1.7 million. But he will likely face questions about pushing free trade pacts as President George W. Bush's trade negotiator as well as questions about huge deficits when he served as Bush's budget director.

"This will come up again and again and again," Duffy said. "I think Ohio is a really competitive race."