This story on Politico features a recent study of the finances of the state Democratic and state Republican Parties. It shows 15 major state party organizations have more debt than resources (8 state Democratic Parties and 7 Republican Parties). The McCain-Feingold law, which severely restricted donations to political parties, helped cause this situation. A bigger cause is that big money now flows to outside groups that make independent expenditures. Thanks to Rick Hasen for the link.