Special to NKyTribune
Lobbyists and the businesses and organizations that employ them spent $13.7 million in the first eight months of 2015, and lobbying spending is on track to break all records, even though this year’s General Assembly session was only half as long as the 60-day session held in even-numbered years.
The record for lobbying spending was set last year, when $18.4 million was spent. If spending continues at its current pace, at least $5 million could be spent in the last four months of the year, sending the 2015 total to an all-time high of $18.7 million.
Lobbying spending increased every year from 1993 until the 2008 market crash and subsequent recession. Spending went down in 2010 and 2011, then recovered in 2012 ($17.7 million), and has been back on an upward trend since then.
In the last two years, the number of businesses and organizations employing lobbyists has risen from 651 to 667, but the number of lobbyists has decreased from 604 to 563. This trend appears to indicate that, instead of sending their own employees to the State Capitol, more employers are contracting with one of the many lobbying firms which have opened or expanded in Frankfort.
The largest lobbying firms represent from 20 to 50 clients, and generally, each client pays from $2,000 to $6,000 a month for legislative lobbying services. The same firms may also lobby executive branch officials for additional compensation.
Top 10 spenders on lobbying this summer were: Altria ($77,329); Century Aluminum ($66,600); KY Chamber of Commerce ($63,912); KY Justice Assn. ($53,219); KY Hospital Assn. ($50,138); AT&T ($49,831); Molina Healthcare ($45,344); KY Medical Assn. ($41,154); Buffalo Trace Distillers ($40,000); and Hewlett-Packard ($40,000).
Also, Beam Suntory ($35,000); Humana ($35,640); SAS Institute ($34,000); Lifepoint Health ($33,597); Woodford Forward ($33,445); Kentucky Farm Bureau ($33,149); EQT ($32,596); AmeriHealth Caritas ($32,288); Kentucky Beer Wholesalers ($32,000); Anthem ($31,622); Amgen ($30,307); and KentuckyOne Health ($30,200).
A large component of lobbying in the summer months is sponsorship of events that are held in conjunction with national legislative conferences. This year, 17 lobbyists and 114 employers spent $19,695 on two events at the Southern Legislative Conference in Savannah, Georgia. All Kentucky Senators were invited to the SLC Senate Dinner at The Olde Pink House, and the next night, all members of the General Assembly were invited to Kentucky Night at The Brice Hotel.
At the National Conference of State Legislatures Legislative Summit in Seattle, Washington, 15 lobbyists and 88 employers combined to spend $19,111 on three events to which legislators were invited. On August 3, all House members were invited to a reception at the Motif Hotel, and all Senate members were invited to a dinner at the Metropolitan Grill. The next night, all members were invited to the Bluegrass Social at the Edgewater Hotel on the Seattle waterfront.
The American Legislative Exchange Council Annual Meeting in San Diego featured two events to which all Kentucky legislators were invited. On July 23, the ALEC Legislative Dinner was at Eddie V’s Prime Seafood restaurant, and on July 24, Kentucky Night was held at the Hotel del Coronado, the site of the meeting. A total of $5,368 was spent on the events by 51 employers and four lobbyists.
Another event during the recent reporting period was the Kentucky Derby Brunch, held on May 2 at the Brown and Williamson Club in Louisville. Led by AT&T ($5,000); Humana ($3,100); KentuckyOne Health ($2,022); and RAI Services ($2,022), 28 employers spent $15,656 on this Derby Day event to which all Kentucky legislators were invited.
On June 6, the Kentucky Distillers Association spent $2,000 on the Kentucky Bourbon Affair at Bowman Field in Louisville, and all legislators were invited.
On July 27, the Kentucky Chamber of Commerce spent $3,984 on a two-day Business Summit at the Marriott Hotel in Louisville, to which all legislators were invited.
On July 16, the Indiana/Kentucky/Ohio Regional Council of Carpenters spent $2,667 on an event at the group’s headquarters in Louisville to which all members of the Interim Joint Committees on Economic Development and Labor and Industry were invited.
On Aug. 27, the Kentucky Farm Bureau Federation spent $5,134 and invited all legislators to the Kentucky Country Ham Breakfast at the State Fair.
Ethics Reporter is a publication of the Kentucky Legislative Ethics Commission. It is reprinted with permission.