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Washington Lobbying Sets Record in 2007
By Kevin Drawbaugh
Reuters
Thursday 10 April 2008
Washington - Corporations, unions and other interests spent a record-setting
$2.79 billion in 2007 on lobbying Washington officials for favorable policies,
said a study from a watchdog group released on Thursday.
The Center for Responsive Politics said spending in 2007 eclipsed the previous
record in 2006 by $200 million, with health care interests, Wall Street, the
real estate industry and insurers among the biggest spenders.
"Lobbying seems to be a recession-proof industry. In some respects, interests
seek even more from our government when the economy slows," said Sheila
Krumholz, executive director of the 25-year-old group that analyzes data on
money in politics.
The latest figures show a year of typical growth for K Street, the nickname
often applied to the capital's booming influence industry, but there were notable
changes, too.
For instance, the U.S. Chamber of Commerce remained the nation's single-largest
spender, with $52.8 million expended in 2007 on in-house and outside lobbyists.
But that was down 27 percent from last year, the center said.
Sharply higher spending was seen on other fronts, with private equity firm
Blackstone Group LP ramping up its expenditures 477 percent to $5.4 million.
The private equity industry successfully halted an effort in Congress recently
to raise taxes on the profits of its senior partners.
The National Education Association, the largest U.S. teacher's union, spent
$9.2 million last year - up 464 percent - amid efforts to reauthorize the
No Child Left Behind act.
Factors Behind Increase
Lobbying spending grows because fees are up, more groups see lobbying as important
and more expenses are being disclosed as rules tighten, said Lane Kneedler,
a partner at the law firm of Reed Smith in its Richmond, Virginia office.
Kneedler, who teaches a government ethics seminar at the University of Virginia
Law School, added that lobbying by "special interests" is sometimes
unfairly maligned.
"What some people consider to be a 'special interest' is probably what
other people believe to be their legitimate vehicle for voicing their view,"
he said.
Drug and health care product companies spent $227 million on lobbyists last
year, up 25 percent over 2006 and more than any other industry group, with insurers
second at $138 million.
Next came electric utilities at $113 million, computer and Internet companies
at $111 million, and hospital and nursing home companies at $90.5 million, said
the center.
Securities and investment firms spent $87 million, raising its expenditure
by 40 percent over 2006, the center said.
Corporations that spent heavily on lobbying included General Electric, Exxon
Mobil, AT&T, General Motors, Verizon, Northrop Grumman, Boeing and Lockheed
Martin.
Among K Street's many firms, Patton Boggs reported the highest revenue from
registered lobbying for the fifth consecutive year, at $41.9 million, the center
said.
The firm's top clients included private equity firm Cerberus Capital Management,
candy and pet food maker Mars Inc, drugmakers Bristol Myers Squibb and Roche
Holding AG, as well as an association that represents trial lawyers.
On the level of lobbying expenditure overall, the center said: "The amount
of money spent on federal lobbying has increased about eight percent annually
since the late 1990s, making last year's growth typical."
The center said it based its study on public disclosures available through
the Senate Office of Public Records. The study was released first to Reuters
and then posted on the center's Web site at www.opensecrets.org.
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Reporting by Kevin Drawbaugh; Editing by Andre Grenon
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