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od of reassessment and re-
trenchment.
Most pro-Israel PACS experi-
enced sharp declines in fund rais-
ing since the last election cycle.
Many groups reported a 20 to 25
percent drop in donations.
And that limited their ability
to play an active role in cam-
paigns around the country.
"There were a number of cam-
paigns where we felt that pro-Is-
rael candidates were in real
jeopardy of losing--but where we
simply didn't have the money to
get involved," said the director of
one major pro-Israel PAC. "It
was very frustrating, because
this was such a pivotal election
because of the very high
turnover."
And with the growing percep-
tion that peace in the Middle
East is a real possibility, most
pro-Israel politicos expect that
the fund-raising crunch will con-
tinue — and require a new round
of painful cutbacks.
"Basically, we all have to be-
come more sophisticated in how
we raise money," said Charles
Brooks, executive director of the
National PAC — the biggest pro-
Israel PAC. "And we have to be
more effective in educating peo-
ple about why it is still so vital
that we maintain a very strong
and active presence on Capitol
Hill."
The American Israel Public
Affairs Committee (AIPAC), the
chief pro-Israel lobby group, is
also thinking about a future with
declining revenues.
A number of sources indicat-
ed that AIPAC is beginning a
painful budget planning process
that could result in a new round
of cutbacks.
AIPAC president Steven
Grossman said that the budget
planning process for 1995 is still
in its earliest stages, and that "a
number of contingency plans are
being examined."
He also said that this year's
pledges by contributors are run-
ning slightly ahead of last year's
level — although whether those
pledges actually produce cash in
AIPAC's bank account won't be
known until the end of the year.
Unlike most political organi-
zations, AIPAC operates on a
cash basis, based on the actual
receipts from the previous year.
"It's a very conservative
method of budgeting," Mr. Gross-
man said. "But we think it's pru-
dent; we place a very high
priority on keeping our fiscal
house in order."

