California Lobbying Expenditures Surge to Record $540 Million

Categories: California Business NewsCalifornia ConstructionCalifornia EducationCalifornia HealthcareCalifornia ManufacturingCalifornia NewsCalifornia Real Estate

The California State Capitol, a hub of political discussions and lobbying efforts.

News Summary

California has recorded a historic $540 million in lobbying expenditures for 2024, a 10% increase from the previous year. This surge is driven by major corporations and special legislative sessions. Significant spenders include the Western States Petroleum Association and tech giant Google, highlighting the growing influence of corporate money in state legislation. With this record spending, transparency in lobbying remains a concern as companies influence public policy through substantial financial efforts.

California has recorded a staggering $540 million in lobbying expenditures for 2024, marking the highest amount ever spent to influence state legislation. This represents more than a 10% increase from the $485 million spent in 2023, according to data recently filed with the California Secretary of State and reviewed by CalMatters. This surge in spending is largely driven by aggressive lobbying efforts from major corporations, including tech giants like Google and various oil companies.

Factors contributing to this increase include special legislative sessions that saw intense lobbying by various industries vying for favorable policies. California’s full-time Legislature and its status as one of the world’s largest economies make it a prime target for lobbying efforts. In fact, an economics analysis suggests that spending over $500 million on lobbying reflects California’s significant economic stature when compared to federal lobbying expenditures.

Among the significant contributors to this record sum, the Western States Petroleum Association reported spending over $17.3 million in 2024, more than doubling its expenditures from the previous year. A substantial portion of this spending—over $10 million—was dedicated to advocating against gas price regulations during the summer months. Another major player, PacifiCorp, incurred lobbying expenses exceeding $13.4 million, marking a 30-fold increase compared to its average spending over the past twenty years.

Utilities also played a significant role, with Pacific Gas & Electric investing nearly $3.6 million in lobbying efforts. The utility was able to influence around two-thirds of the 45 bills on which it publicly took a stance. Meanwhile, tech titan Google notably ramped up its lobbying spending, surpassing the total of its combined spending from the past two decades. In 2024 alone, Google accounted for nearly $7 million of the reported $7.4 million lobbying expenditures by the Computer & Communications Industry Association.

On the labor side, only two unions, the Service Employees International Union and the California Teachers Association, exceeded $1 million in lobbying expenses. The SEIU reported spending nearly $3.4 million, while the Teachers Association spent over $3.1 million, with both unions achieving success on about 70% of the bills they supported.

Transparency in lobbying remains a concern, as organizations engaging lobbyists are only required to disclose their expenditures in quarterly reports to the California Secretary of State. Recent analyses indicate that corporate lobbying efforts have approximately a 60% success rate, although this percentage may not accurately account for efforts that take multiple legislative cycles to yield results.

While the total lobbying expenses are compiled from the quarterly reports submitted by various organizations, the current legal framework in California does not mandate the disclosure of the specific offices or staff members that meet with lobbyists. This lack of transparency complicates the evaluation of lobbying dynamics and effectiveness.

The complexities of tracking lobbying expenses are further aggravated by overlapping activities, and the lengthy timeframes required to effectuate significant legislative changes can create challenges in understanding the full impact of lobbying expenditures. Additionally, the data on lobbying expenses sometimes includes funding given to industry groups for lobbying efforts, which can result in double reporting.

Overall, the record spending on lobbying in California underscores the increasing influence corporations have over public policy, further highlighting the ongoing interplay between money and legislation in the state. As lobbying expenses continue to rise, understanding the implications and intentions behind these expenditures will remain crucial for evaluating California’s policy-making landscape.