Lobbying spending in Kentucky continues its upward trend, with almost $5 million spent on lobbying in the first two months of the 2016 General Assembly, a 12 percent increase over the same period in 2014 (the most recent 60-day budget session).
The number of businesses and organizations which are lobbying also climbed to a record high, as 696 employers registered to lobby, a five percent increase since 2014.
The uptick in lobbying spending may be partly attributed to the increased size of the state budget, compared with the two-year budget adopted in 2014. For example, House and Senate versions of the state’s budget for the next two years include $24.9 billion in federal funds, which is $4.1 billion or 16.5 percent more in federal funds than the last budget.
House and Senate versions of this session’s budget also include about $2 billion more in the General Fund than the budget adopted in 2014.
Most of the increase in federal funds is attributable to increased Medicaid benefits which are paid through state government to health care providers and managed care organizations. The 2014-16 budget included $12.1 billion in federal funds for Medicaid benefits, while this year’s House and Senate budget versions include $16.9 billion, a 28.5 percent increase in federal funds to pay providers for services covered by Medicaid.
In the first two months of 2016, lobbying spending by health care providers, health insurance companies, and other health-related businesses and organizations totaled about $1.26 million, which is 26 percent of all lobbying spending, and a 30 percent increase over health-related lobbying spending in the same period in 2014.
The biggest spending lobbying interests in the first half of the 2016 session were: Kentucky Chamber of Commerce ($71,456); Altria ($69,075); Kentucky Hospital Association ($65,799); Kentucky Retail Federation ($59,965); Kentucky Justice Association ($53,675); Marsy’s Law for All ($44,498); Kentucky Farm Bureau Federation ($37,822); Kentucky Bankers Association ($36,160); Kentucky League of Cities ($35,145); Norton Healthcare ($34,214); Anthem Inc. ($34,000); Kentucky Association of Electric Cooperatives ($31,931); Kentucky Association of School Administrators ($31,650); Home Builders Association of Kentucky ($30,677); and Humana Inc. ($29,767).
Complete reports of lobbying spending are available at the Legislative Ethics Commission’s website.
Lobbyists spend $114 on receptions, events
Lobbyists and their employers spent about $114,000 on receptions and events in the first two months of the 2016 General Assembly.
The most expensive event to which all legislators were invited was the Energy Reception at Frankfort’s Buffalo Trace Distillery, where six groups spent a total of $13,967. Sponsors were Coal Operators and Associates ($5,171); Duke Energy ($604); Kentucky Association of Electric Cooperatives ($1,813); Kentucky Coal Association ($5,171); Kentucky Power ($604); and LG&E and KU Energy ($604).
Other events at Buffalo Trace were a reception co-sponsored by Teamsters Local 89 ($6,000) and Kentucky State Building and Construction Trades Council ($2,000); and a chili dinner, sponsored by Kentucky Professional Fire Fighters ($2,117).
Events held at the Capital Plaza Hotel in Frankfort include: receptions sponsored by Family Resource and Youth Services Coalition of Kentucky ($7,785); Kentucky Cable Telecommunications Association ($4,378); Kentucky School Boards Association ($4,302); and Northern Kentucky Chamber of Commerce ($1,000); and a breakfast sponsored by Kentucky Rural Water Association ($4,069).
CSX ($2,474), Norfolk Southern ($2,474), and Paducah & Louisville Railway ($2,474) co-sponsored a $7,422 reception held on rail cars parked in downtown Frankfort; and Kentucky Chamber of Commerce spent $6,710 on a Chamber Day event at the Lexington Convention Center.
Several organizations sponsored luncheons in meeting rooms in the Capitol Annex. Those include: Kentucky Travel Industry Association ($5,200); Kentucky Justice Association ($4,937); Kentucky Society of Certified Public Accountants ($2,686); Kentucky Hospital Association ($1,677); Kentucky Optometric Association ($1,278); and Kentucky Dental Association ($1,085).
Ethics Reporter is a publication of the Kentucky Legislative Ethics Commission. It is reprinted with permission.