Focus on Taxpayer-Funded Lobbying Shifts to National Level

Decades of polling data consistently show taxpayers’ preference for smaller government and lower taxes. In recent elections, both parties laid claim to fiscal conservatism.

Americans for Prosperity Foundation has investigated how much in taxpayer dollars are being used to lobby in Washington, D.C., directly against taxpayer interests. While ordinary Americans are busy earning a living, taking care of their families and paying their taxes, their hard-earned tax dollars are being used to pay for lobbyists who are fighting for higher taxes and bigger government.

Taxpayer-funded lobbying is a largely unnoticed barrier to enacting pro-growth, limited government policies. Taxpayer-funded groups descend on Washington and state capitals every time legislation to limit the size, cost, and intrusiveness of government is under consideration.

Americans for Prosperity Policy Director Phil Kerpen investigates taxpayer-funded lobbying in a new policy paper Taxpayer-Funded Lobbying: Runaway Government Growth. The full study is available by clicking here.

Americans for Prosperity - Texas has been a leader in focusing on the inequity of taxpayer-funded lobbying. AFP is now leading a national movement to focus public attention on taxpayer-funded lobbying at the federal level.

The study found that the influence of lobbying by state and local governments and universities drives an enormous expansion of spending at the federal level. From 1998 to 2007, federal lobbying expenditures by local governments skyrocketed 240.9% and don’t appear to be slowing down:

For example, in the past 10 years the city of Houston spent more than $5 million on federal lobbying, and the city of San Antonio spent $2.7 million. Texas Tech University spent $4.57 million, Fort Worth spent $2.1 million and Dallas spent $2.08 million on federal lobbying in the same period.

“Taxpayer-funded lobbying is a large and growing epidemic,” said Peggy Venable, AFP state director. “Elected officials use your state and local tax dollars to lobby for higher federal spending, a process that pits tax spender against taxpayer and leads to a distorted legislative process.”

“Fortunately, Governor Perry has ended contracts with lobbyists in DC representing Texas government,” said Venable. “Gov. Perry is taking the lead. Our elected officials should work together in their constituents’ best interest, not hire lobbyists to do their job.”

Venable said it is a violation of taxpayers’ trust for a public entity to take taxpayer dollars and lobby against taxpayer interests.

Nationwide, state governments, local governments, public universities, transportation authorities, and public water utilities spent an astonishing $138.1 million on federal lobbying in 2007. They spent another $77.8 million on lobbying in the first half of 2008, the most recent data available. Over the entire 1998 through first-half 2008 period, taxpayer-funded lobbying totaled a staggering $1.09 billion.

It’s even worse on the state level. AFP calculated that in 2005, 541 local government entities spent $52.6 million on 1,618 lobbyists in Austin, to push for greater spending and higher taxes.

“The argument that ‘Everybody else is doing it’ is no excuse—it’s all the more reason to push for meaningful reform,” Venable said. “At the very least, it should be transparent and citizens should be able to find out how much is being spent by accessing information at the Texas Ethics Commission website where lobbyists file.”

In addition to commending Gov. Perry, Venable praised Harris County Commissioners for setting an example the rest of the state—and nation—should follow. Harris County pulled out of the Texas Association of Counties, a group notorious for using taxpayer dollars to fight against taxpayer protection legislation. At the time, Harris County officials cited opposition to the TAC’s positions which don’t represent the views of Harris County voters.

“That action represented an important turning point because it showed that, while we will continue to fight for reforms to curtail the process statewide and nationally, individual states, counties and cities can choose to ‘just say no’ to government lobbying,” Venable said.