Taxpayer-funded lobbying

From Sunshine Review

Public entities, including counties, cities, state schools, and public facilities that lobby use money received from taxes for their lobbying activities.

Lobbying can be explicit, such as membership in taxpayer-funded lobbying associations, or advocacy before a legislative body. The practice can be more subtle, such as school districts hosting legislators for a breakfast to create favorable relationships with legislators. ^[1]

[edit] Taxpayer-funded lobbying associations

Taxpayer-funded lobbying associations (TFLAs) are groups that use funds that come directly or indirectly from taxpayers for political lobbying purposes. Local entities—cities, counties, school district—use taxpayer funds to pay dues to belong to a group such as the New Jersey State League of Municipalities. That association then pays money directly to lobbyists to lobby for or against particular pieces of legislation.

A piece of legislation came to the Alaskan legislature floor for the 2008 ballot that would eliminate taxpayer-funded lobbying donations to election campaigns, but it failed. As of July 31, 2009, supporters of the bill have resurrected it and are trying to have it passed so it applies to the 2010 ballot.

[edit] Federal lobbying

State governments, local governments, public universities, transportation authorities, and public water utilities spent $138.1 million in 2007.^[2]

When local and state-based governments send lobbyists to Washington, D.C., they are typically lobbying for earmarks. Examples include:

• Huntsville, Alabama, with a population of 170,000, paid lobbyists $100,000 for their services. In FY 2008, Huntsville received $4,742,824 in earmarks.

From 1998 to 2007, federal lobbying expenditures by local governments saw an increase of 240.9% to $138.1 million in 2007.^[2] Over the entire 1998 through first-half 2008 period, taxpayer-funded lobbying totaled a staggering $1.09 billion.^[2] Local governments spent another $77.8 million on lobbying in the first half of 2008. ^[2]

[edit] President Obama

On Jan. 14, 2009, Peter Wallsten of the LA Times reported Obama's intentions to capitalize on his presidential campaign's "vast network" by hiring "an army of full-time organizers" to lobby for his agenda.^[3]

The millions devoted to this grass-roots network have been deemed the "country's most potent political machine." In light of controversial debates concerning economic and healthcare reform, the network would be tapped to pressure lawmakers, especially uncertain democrats, to help pass the president's legislative favorites.^[3]

The centralized system would depart from the "Democratic tradition of relying more on muscular state and local party organizations" and instead operate through the Democratic National Committee. The organization is rumored to have an annual budget of up to $75 million in privately raised funds to carryout Obama's mission.^[3]

[edit] Cities and states

Cities and states spent $84.1 million on federal lobbying in 2008.^[4] This is as compared to $76 million in 2007 and $72 million in 2006. ^[5]

[edit] Public schools

Lobbying by public school entities reached $102 million in 2008, up $10 million from 2007. ^[5]

[edit] Stimulus package

See also: American Recovery and Reinvestment Plan

Money received through the American Recovery and Reinvestment Plan, or the stimulus package, by private entities has been spent to lobby.^{[6] [7]} The eight large banks that first received bailout funds back in October spent more than $12.4 million in the first half of 2009,^[8] and more than $20 million if including car companies. ^[9] Some examples include:

Bank of America Corp.: Received $45 billion, spent $800,000 in the April-June quarter on lobbying, (up from $660,000 in the first quarter). ^[10]

Citigroup Inc.: Got $45 billion in bailout funds, upped its lobbying spending to $1.7 million in the second quarter (from nearly $1.3 million in the January-March period). ^[10]

JPMorgan Chase: Repayed $25 billion it received. It spent nearly $1.8 million on lobbying in the latest quarter (up from $1.3 million in the first quarter).^[10]

Goldman Sachs Group Inc.: Goldman pared back its lobbying outlays in the quarter to $630,000 (from $670,000 in the first quarter).^[10]

Morgan Stanley:' Lobbying expenditures jumped to $830,000 (from $540,000 in the first three months of the year). ^[10]

General Motors: Spent about $2.8 million on lobbying Congress and the federal government (about the same as in the first quarter).^[10]

[edit] Criticisms

Taxpayer-funded lobbying is seen as unnecessary, as local governments already have effective lobbyists in senators and representatives. ^{[11] [12]}

Phil Kerpen of Americans for Prosperity wrote a paper in December 2008, arguing that although taxpayer-funded lobbying goes largely unnoticed, it hinders limited government and pro-growth policies:

"Taxpayer-funded groups descend on Washington and state capitals every time legislation to limit the size, cost, and intrusiveness of government is under consideration."^[13]

According to the report, taxpayer-funded lobbying totaled $1.09 billion between 1998 and through the first-half 2008. ^[13]

Peggy Venable, also of Americans for Prosperity, argues that government should not be in the business of providing funding to give voice to points of view that may not represent the views of the majority of the taxpayers. This removes the neutrality from the state, allows and breeds abuse, and protects public officials by "allowing them to hide behind the lobbying activities of organizations and other lobby-hired guns". ^[14]

[edit] Disclosing lobbying activities

There are many obstacle to tracking taxpayer-funded lobbying. Available data is not coded to reflect whether entities are public, and many non-profit organizations that hire lobbyists receive taxpayer funding. ^{[13] [15]}

Reporting includes only lobbying expenditures that are subject to disclosure. However, while private lobbyists have a limit of $50 for gifts to the Senate (and the practice is banned in the House), public entities are exempt and can gift without any limit or disclosure. Therefore, these activities are impossible to measure. ^[13]

In Texas, the House of Representatives produced a report on ethical matters and taxpayer-funded lobbying in 2006. The report found that there were glaring flaws in the disclosure and tracking of the spending of taxpayer funds. While not coming out explicitly against such activities, the House Committees recommended open, full, and consistent disclosure of lobbying expenditures to be strictly enforced in order to fix the obvious inadequacies in the system. See Disclosure concerns in Texas

[edit] See also

• Get started on the project page
• Taxpayer-funded lobbying on Ballotpedia

[edit] External links

• Taxpayer-Funded Lobbying: Runaway Government Growth

[edit] References

	v • d • e Lists of taxpayer-funded lobbying associations
By type	National organizations Cities • Counties • Schools • Police • Universities
By state	Alabama • Alaska • Arizona • Arkansas • California • Colorado • Connecticut • Delaware • Florida • Georgia • Hawaii • Idaho • Illinois • Indiana • Iowa • Kansas • Kentucky • Louisiana • Maine • Maryland • Massachusetts • Michigan • Minnesota • Mississippi • Missouri • Montana • Nebraska • Nevada • New Hampshire • New Jersey • New Mexico • New York • North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania • Rhode Island • South Carolina • South Dakota • Tennessee • Texas • Utah • Vermont • Virginia • Washington • West Virginia • Wisconsin • Wyoming •