Campaigns feud over public-funding issue

WASHINGTON, June 20 (UPI) -- John McCain's campaign denied a comment by Sen. Barack Obama's camp that the two sides discussed whether the Arizona senator would take public campaign funds.

Obama, the likely Democratic presidential nominee, announced Thursday he would forgo public funding, becoming the first presidential candidate to do so since the system was created in 1976.

Bob Bauer, counsel for the Obama campaign, said he and McCain's counsel talked about public funding during a discussion of joint town hall appearances in June, CNN reported.

"I asked him to address a (series) of issues of concern to the Obama campaign -- the McCain campaign's active raising and spending of private money since February for a general election campaign ... ," Bauer said in a statement. "He gave me his perspectives ... and it was clear to me that these offered no basis for any further exchange."

McCain spokeswoman Jill Hazelbaker said Bauer "never negotiated with Potter about public financing."

McCain, the presumptive Republican nominee, blasted the Illinois senator's decision, saying it "should be disturbing to all Americans."

He said his campaign may opt out as well, CNN reported.

"We'll have to re-evaluate in light of his decision," McCain said on a tour of flood-ravaged Iowa Thursday. He said he was favoring taking public money.