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In 2024, California set a record for lobbying expenditures, surpassing $540 million, a 10% increase from the previous year. Major companies, including Google, significantly contributed to this surge, particularly during critical legislative sessions. Notable spenders include the Western States Petroleum Association and Pacific Gas & Electric. Despite increased investments from corporations, labor unions like SEIU and the California Teachers Association have also made their presence felt. The complexity of lobbying efforts and the lack of transparency continue to raise concerns over corporate influence in California politics.

California has set a record for lobbying expenditures in 2024, with corporations and interest groups spending over $540 million to influence state government decisions. This marks a significant increase of more than 10% compared to the $485 million spent in the previous year, according to data recently filed with the California Secretary of State and reviewed by CalMatters.

The surge in lobbying spending is largely attributed to intense efforts by major companies and organizations, including technology giant Google and energy firms, particularly during critical legislative sessions. In a state known for its full-time Legislature and vast economic influence, high levels of lobbying expenditure are considered typical.

Francesco Trebbi, an economics professor at UC Berkeley, notes that the $500 million figure aligns with the economic scale of California, especially when compared to federal lobbying efforts. Thomas Holyoke, a political science professor at Fresno State University, points out that such increasing spending may indicate a growing corporate influence and the significance of policy decisions in California.

Among the notable contributors to the lobbying expenses, the Western States Petroleum Association reported spending over $17.3 million on advocacy in 2024, more than double its expenditures from the prior year, largely for lobbying focused on gas price regulations. Additionally, PacifiCorp, the largest non-oil spender, reported lobbying expenses of over $13.4 million, a striking thirty-fold increase from its previous two-decade average.

Utilities have also shown increased lobbying involvement, with Pacific Gas & Electric expending nearly $3.6 million and successfully influencing approximately two-thirds of the 45 bills on which it took public positions. In the tech sector, Google’s lobbying expenses soared in 2024, surpassing the company’s combined lobbying expenditure over the past 20 years, particularly as it worked against new regulations concerning media and artificial intelligence. Google accounted for nearly $7 million of the Computer & Communications Industry Association’s overall reported spending of nearly $7.4 million.

On the labor side, only two unions—the Service Employees International Union and the California Teachers Association—reported lobbying expenditures exceeding $1 million. The SEIU spent close to $3.4 million, while the Teachers Association reported slightly more than $3.1 million. Both unions achieved success on about 70% of the bills for which they took positions.

Organizations that engage lobbyists are required to disclose their spending through quarterly reports to the California Secretary of State. CalMatters compiled these expenses comprehensively, revealing that corporate lobbying achievements had about a 60% success rate, though this figure likely undercounts ongoing efforts needing multiple legislative cycles to succeed. It’s essential to note that California law currently lacks requirements for disclosure regarding which specific offices or staff members meet with lobbyists, resulting in reduced transparency.

The analysis also indicates that the reported lobbying figures may include instances where organizations fund industry groups for lobbying purposes, potentially leading to double counting of certain expenses. This complexity highlights the challenges in tracking lobbying activities, which often involve overlapping initiatives and lengthy timelines for legislative change.

In summary, California’s lobbying spending reached an unprecedented high in 2024, fueled by significant investments from major corporations and advocacy groups that reflect the state’s economic stature and the intensity of its legislative activities.

California’s Lobbying Expenditures Surge to Record High in 2024

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Author: HERE Huntington Beach