California Hits Record $540 Million in Lobbying Expenditures

Categories: California Business NewsCalifornia News

The California State Capitol, where major lobbying activities take place.

News Summary

In 2024, California’s lobbying expenditures have reached an unprecedented $540 million, reflecting a more than 10% increase from the previous year. Major corporations, including Google and oil firms, have been the largest contributors, aiming to influence state legislation. The lobbying landscape reveals a significant disparity between corporate and labor group spending, with corporate interests dominating the scene. Despite the transparency of lobbying expenditures, challenges remain in tracking specific interactions between lobbyists and public officials. This record spending underscores the powerful influence of entrenched interests on policymaking in California.

California has reached a new milestone in lobbying expenditures, with corporations and interest groups spending over $540 million in 2024 to influence state governance, marking the highest amount recorded to date. This figure represents an increase of more than 10% compared to $485 million in 2023, according to data recently filed with the California Secretary of State and analyzed by CalMatters.

The dramatic rise in lobbying expenditure has been largely attributed to intensified efforts from major companies, including Google, oil firms, and utility companies, particularly during special legislative sessions. In a state with a full-time Legislature and one of the largest economies in the world, such significant lobbying spending has become commonplace.

As the largest economy at a state level, California’s lobbying expenditures are viewed as parallel to federal lobbying spending. An economist from UC Berkeley noted that the substantial investments in lobbying align with the state’s economic scale, suggesting that California’s policy-making process garners attention from well-funded corporate interests.

Among the top spenders in 2024, the Western States Petroleum Association reported more than $17.3 million dedicated to advocacy efforts, which is over double what it spent the previous year. Approximately $10 million of this expenditure was focused on lobbying against regulatory measures linked to gas prices, underscoring the association’s intentions to shape energy policy actively.

PacifiCorp, recognized as the largest non-oil spender, reported lobbying costs exceeding $13.4 million, which is 30 times its average spending over the past two decades. On the other hand, Pacific Gas & Electric allocated nearly $3.6 million on lobbying initiatives, achieving a significant influence on about two-thirds of the 45 bills it publicly engaged with.

Google’s engagement in lobbying activities saw a striking increase, with expenses in 2024 surpassing its cumulative lobbying costs from the last two decades. Notably, significant spending surged in the third quarter as the tech giant sought to contest regulations relating to media and artificial intelligence. Google contributed nearly $7 million to the Computer & Communications Industry Association, which reported total spending of roughly $7.4 million.

In contrast to corporate lobbying, only two labor groups—the Service Employees International Union and the California Teachers Association—reported spending over $1 million on lobbying activities. The SEIU accounted for nearly $3.4 million of the total, while the Teachers Association spent over $3.1 million. Both unions had a successful track record, accomplishing favorable outcomes on approximately 70% of the bills they supported.

Organizations seeking to influence legislation are required to disclose their lobbying expenditures in quarterly reports to the California Secretary of State. CalMatters consolidated these expenses through these directives to present a comprehensive view of lobbying efforts. The analysis observed that corporate lobbying achieved an approximate success rate of 60%; however, this figure may undervalue efforts that required multiple legislative cycles to realize success.

The transparency of lobbying activities in California faces challenges as current laws do not necessitate disclosure regarding which specific offices or legislative staff members meet with lobbyists. This lack of requirement reduces overall clarity about the interactions between lobbyists and public officials.

Furthermore, the reported lobbying expenditures may involve instances where organizations fund industry groups for lobbying, resulting in potential double counting of amounts. The complexities surrounding the tracking of lobbying spending are compounded by overlapping activities and lengthy timelines needed to advocate for legislative changes.

The soaring lobbying expenditures in California highlight entrenched interests seeking to shape significant policy outcomes in one of the world’s most influential economies.