Filings show NDP ended 2018 in rough financial shape

Heading into an election year, the federal New Democratic Partyfell deeper into a financial hole in 2018, hitting a low the party hasn't seen inat least 17 years.

Elections Canada posted the party's annual financial return online on Thursday, showing theNDPfinished last year with assets worth$4.7 million and liabilities totalling $9.2 million, leaving the party with negative net assets of $4.5 million.

That put the partydeeper in the red than it wasin2017, when the NDP's balance sheet showed negative net assets of $3.1 million which was the party's worst recordedfinancial standing for any fiscal year since before 2001,the earliest year for which party records are posted on Elections Canada website.

The party also spent more money than it had coming in, running a $1.4 million operating deficit in 2018. That's largely on par with 2017. The NDP also had less cash in the bank almost $155,000 in 2018 compared tomore than $378,000 in 2017.

The party has said the 2018 balance sheet doesn't include the value of the JackLaytonbuilding it owns in downtown Ottawa. The building and the land it sits on were appraised last yearat close to $8 million, according to the filings.

"With the dramatic increase in the value of the building, we were able to securitize our loan," said spokesperson Melanie Richer in a statement to CBC News.

Karl Blanger, the former principal secretary to pastNDPleader TomMulcair, said the building is an asset because the party can borrow against it to fund the campaign. Still, he said the party's finances could have an impact on its campaign.

"It's going to be difficult for theNDPto run a full campaign this time around," he said. "I think they know that and are taking steps to address it, but clearly more needs to be done and time is running out."

The NDP has been struggling as well to nominate a full slate of candidates. Richer said that the party had nominated 184 candidates as of Wednesday night and was on track to have 271 nominated by the end of next week.

Impact on campaign

TheNDPhas said it plans to run a more targeted campaign with a leaner staff complement, moretimetravelling by bus and fewer days on a plane.

PartyleaderJagmeetSingh told journalists at an announcement about student debt in Toronto Thursdaymorning that his party is running a full campaign and is still chartering a plane.

"We're going to have buses, we're going to have planes, we're going to be able to get across thiscountry," he said.

The financial returns also show theNDP'sdonations and contributions are up slightly year over year, from roughly $5,144,000 in 2017 to around $5,226,000 in 2018.

Compared to other three main parties thatfiled their returns earlier this summer,the NDP was in rough financial shape.

Conservatives had net assets of $5.1 million in 2018, an operating surplus of $3.6 millionand $9.9 million in cash last year. The Liberals followed with $1.7 million in net assets and an operating surplus of just over $4,000. The Greens ended the year with $1.2 million in net assets and $1.1 million in the bank.

Office expenses cut in half

The party cut its office expenses roughly in half compared to 2017, whena leadership race imposed additional costs, but recently increased staff salaries and benefits by almost $165,000 year over year. Fundraising expenses also went up by close to $330,000 and travel and hospitality by more than $228,000.

The party carried over debt from the 2015 election, said Belanger. That happens for most parties after an election, but this time around the party had trouble paying it off, he added.

As a way to save money, theNDPstarted phasingout its contract with a call centre in 2018 that handled fundraising, according to NDPNational Director Melissa Bruno.A team now does fundraising calls in-house, saving the party about half of the cost of the initial contract, she said .

TheNDPalso overhauled its fundraising system last year, inauguratingevents called "Jagmeetand Greets" at supporters' homes.The party cut back on its mail fundraising program and now only targets people by mail who donated that way in the past, said Bruno.

Bruno said the party has turned itsfinancial situation around this year. Fundraising is up compared to the past fewyears and is comparable to Jack Layton's team between 2008-2011, Bruno said. The first and second quarter numbers total $2.63 million, an increase over the last three years, said Richer.

"We have been consistently beating our projections since the beginning of the year, some months by almost 60 per cent," Richer said in a statement.

BelangersaidtheNDPshould try to use this election to get out of the red.

"The key for them is to use the campaign to raise as much money as possible, in order to not end up at the end of the campaign with a debt that is out of control," he said.