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[Print] =20 [Email] &nbs= p; =20

The Obama era brings boom times for lobbyists

By: Timothy=20 P. Carney
Examiner Columnist
03/17/09 7:39=20 PM

Early numbers suggest that the first quarter of 2009 has seen = lobbying in the=20 nation=E2=80=99s capital spike by nearly 22 percent over last year, = which would be the=20 largest ever increase in lobbying activity =E2=80=94 and a strong = indication that=20 President Barack Obama has helped usher in a Golden Era for K = Street.

Between Jan. 1 and March 16 this year, the Senate Office of Public = Records=20 received 1,381 new lobbying registrations, which include new lobbying = firms, new=20 clients at existing firms, and businesses hiring their first lobbyists. = This is=20 the largest batch of new registrations since 1999, the first year these = records=20 were kept, and a 21.7 percent increase over last year.

If you subtract the lobbying accounts that have been terminated, you = get a=20 net gain in active lobbying accounts this year of 1,252, which = represents a=20 surge of 13.5 percent over last year=E2=80=99s growth of 1,103 net = lobbying accounts in=20 the same period.

The number of active lobbying accounts is not the only measure of = lobbying=20 activity =E2=80=94 dollars spent is probably the most important number, = but=20 first-quarter figures on that won=E2=80=99t be available until late = April. The first=20 quarter, of course, has two weeks remaining, and 76 days is a small = sample size,=20 but the bump in new registrations is significant enough to support = anecdotal=20 evidence that Obama=E2=80=99s ambitious agenda and breakneck pace are a = major boon to=20 the very industry he ran against.

The $787 billion stimulus bill, which was the largest spending bill = in U.S.=20 history, and the $410 billion fiscal year 2009 omnibus spending bill, = which was=20 larded with 8,750 earmarks, attracted thousands of lobbyists in search = of pet=20 programs and earmarks. This column reported on dozens of town, city, = county and=20 state governments or government agencies hiring new lobbyists this = winter =E2=80=94 an=20 effort to grab a share of the trillion dollars in spending on the = table.

Obama doesn=E2=80=99t deserve full responsibility, however. From 1999 = to 2007,=20 federal lobbying spending grew by an average rate of 8 percent a year. = From 2007=20 to 2008, the amount of lobbying accelerated, with spending growing by a = record=20 14 percent, even with the recession and the election putting a damper on = fourth-quarter lobbying activity. If lobbying spending grew by 14 = percent last=20 year with flat growth in net new accounts in the spring, what will this = spring=E2=80=99s=20 boom in new accounts yield?

Reading through the new registrations, three growth sectors seem to = be=20 driving the lobbying boom: municipalities, alternative energy and = Democratic=20 firms picking up corporate clients.

Towns, cities, counties and states (some as small as Cordova, Alaska, = population 2,251) bought into K Street this year, mostly seeking = stimulus=20 funding. Will these local governments terminate their lobbyists this = year, or =E2=80=94=20 as often occurs =E2=80=94 will they continue seeking favors now that = they=E2=80=99ve got a taste=20 of Washington largess? If the latter occurs, the Obama lobbying boom = will be of=20 unprecedented magnitude.

With calls for green energy and energy independence, companies big = and small=20 have come to Washington. Appropriations bills, the stimulus, energy = bills, and=20 cap-and-trade proposals don=E2=80=99t uniformly support alternative = energy technologies,=20 which is why you have companies like Hydro Green Energy and = biodegradable=20 product maker Perf hiring new lobbyists to hit Capitol Hill and the = executive=20 branch, making sure that their product is one of the winners picked by=20 policymakers.

The Democratic lobbying boom, to some extent, comes at the expense of = Republican lobbyists (reflected a bit in a spike in terminations). A = small=20 sample of Democratic lobbying success: Former House Minority = Leader=20 Richard Gephardt, D-Mo., has landed five new clients already this year,=20 including Visa and the biggest fish of them all =E2=80=94 the U.S. = Chamber of Commerce,=20 which spends more on U.S. lobbying than any other organization or = company.

Some observers who have noted this trend have been surprised, with = the Hill=20 newspaper in January calling it =E2=80=9Cironic, given the = president=E2=80=99s rhetoric and=20 immediate strictures against lobbying.=E2=80=9D But it=E2=80=99s not = surprising. Giving power to=20 government gives more influence to lobbyists, thus increasing the demand = for=20 them. Obama cannot simultaneously increase government and curb = lobbyists.

The numbers are bearing this = out.

Reader Comments

All=20 comments on this page are subject to our Terms of Use and do not = necessarily=20 reflect the views of the Examiner or its staff.

mtm

Mar 17, 2009

I think it is not technically the expansion of government, but the = speed of=20 the expansion and the morals of those expanding it. One could grow the=20 government without tempting an orgy of new lobbies into existence, but = it would=20 require a degree of moral seriousness not currently known in Washington = DC. The=20 "need to get a bill passed now...ahem...for America!" rhetoric = encourages=20 reckless and feckless pork-barreling. What if Obama said and followed = through on=20 this intention: "I will veto the bill that stinks of lobbying. Do not = tempt me.=20 The economy is too important. Etc." It is in no way likely, but slow and = morally=20 serious--the two go hand-in-hand, could, in another time, grow = government=20 without growing lobbies. That is, does power always corrupt? A seeming = quibble,=20 but not for Mr. Carney, I'll wager.

mensareject

Mar 18, 2009

I don't understand the figures. I recall seeing a 60 Minutes program = circa=20 1999 that focused on Lobbyist numbers increases during the Clinton = years. It was=20 something like 5,000 in 1993 and doubled to 10,000 by 1999. Don't know-- = but=20 would guess it doubled again during the Bush years. 20,000?

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The Obama era brings boom times for lobbyists

By: Timothy=20 P. Carney
Examiner Columnist
03/17/09 7:39=20 PM

more from Timothy P. Carney

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Sports

Jets=20 trade with Detroit, select Iowa RB Shonn Greene to start 2nd round of = NFL=20 draft

Economy

Offic= ials says=20 Obama to lift US restrictions on family travel and remittances to = Cuba

Entertainment

NBC's=20 'Celebrity Apprentice' picked up for another round in Spring = 2010

The Obama era brings boom times for lobbyists

By: Timothy=20 P. CarneyExaminer Columnist03/17/09 7:39=20 PM

more from Timothy P. Carney

Reader Comments

Post a comment

Sports

Jets=20 trade with Detroit, select Iowa RB Shonn Greene to start 2nd round of = NFL=20 draft

Economy

Offic= ials says=20 Obama to lift US restrictions on family travel and remittances to = Cuba

Entertainment

NBC's=20 'Celebrity Apprentice' picked up for another round in Spring = 2010

By: Timothy=20 P. Carney
Examiner Columnist
03/17/09 7:39=20 PM