Spending on Albany lobbying sets record at $331M after pandemic dip
The total spent for lobbying in Albany in 2022 surpassed the state record or $298 million, which was set in 2019, the year before the COVID-19 pandemic hit. Credit: AP/Hans Pennink
ALBANY — After a pandemic dip, lobbying in Albany has rebounded bigger than ever.
The amount of money spent on lobbying New York state lawmakers hit an all-time high in 2022 — $331 million — according to a report released Monday by the state ethics commission.
That marks a 13% increase over 2021 and easily surpassed any pre-pandemic totals, the commission said.
It wasn’t just total spending. Everything went up: the number of lobbyists; the number of clients paying lobbyists; advertising spending, and the number of lobbyist-related “social events.”
The top issues included health care, the state budget, real estate and housing laws, economic development and education. The competition for three downstate casino licenses also spurred about $6 million in lobbying spending.
The top spenders were many of the same interest groups that spend the most on lobbying in New York year in, year out.
1199/SEIU, the giant health care union, led all spending with $5.7 million. A related entity, 1199/SEIU United Healthcare Workers East, separately spent $2.3 million and ranked fourth on the 2022 list.
Rounding out the top five were the Greater New York Hospital Association ($3.5 million), gambling company Genting ($2.5 million) and AARP ($2.3 million).
The total spent in 2022 surpassed the state record of $298 million, which was set in 2019, the year before the COVID-19 pandemic hit. That lobbying has bounced back is no surprise to watchdog groups.
“Had the number went down, folks like us would have suspected it was because of bad reporting,” said John Kaehny, executive director of Reinvent Albany, a group that monitors lobbying, ethics, subsidies and other issues.
The reason for the lobbying rise is simple, he said: It often influences state spending and lawmaking.
“It’s an incredibly good investment for special interests. With a million dollars in lobbying, it can turn into tens of millions of dollars of tax breaks or government spending,” Kaehny said.
Health care and education are annually the two biggest shares of the state budget, which runs about $229 billion. So it’s no surprise that, when the ethics commission broke down lobbying by topic, the state budget ranked No. 1 with 769 clients hiring lobbyists on their behalf.
That was followed by real estate (743), economic development (404) and education (298).
Making an appearance in the top 10 spenders was an entity called Homeowners for an Affordable New York LLC, which spent $1.4 million. It is an alliance that includes the New York State Association of Realtors, the Small Property Owners of New York and the influential Real Estate Board of New York.
The group has been fighting to block the so-called “Good Cause Eviction” bill, which would make it harder to evict tenants. Besides lobbying lawmakers, the group also launched a phone campaign of directly calling city households and urging them to oppose the bill, as reported by The City, an online news platform.
The Good Cause bill, supported by a raft of tenants’ groups and Democratic lawmakers, has been the subject of bitter fights since the pandemic but hasn’t gained legislative approval.
The $6 million that companies seeking to land one of three downstate casino license spent on lobbying and advertising was a small share (2%) of overall lobbying, perhaps smaller than watchdogs might have expected, Kaehny said.
Then again, the official bidding period for the licenses didn’t open until January 2023, and spending for this calendar year could be much higher than 2022. The lobbying totals also won't reflect funds companies are spending to build "good will" with potential host communities.
Further, a closer look shows one company accounted for almost half the industry’s total: Genting, which operates Resorts World at Aqueduct Racetrack, spent $2.5 million. And the company hired eight different lobbying firms.
That’s not too unusual in the battle for the licenses, where casino companies often have more than one lobbying firm and some firms hired more than one lobbyist.
Other gambling companies that spent on lobbying included MGM, which operates gambling at Yonkers Raceway ($567,000); Seminole Hard Rock Entertainment, which is partnering with Mets owner Steve Cohen for a potential bid near Citi Field ($495,000), and Las Vegas Sands, which is eyeing a bid at the old Nassau Coliseum ($397,000).
Spending on advertising grew to nearly $18 million in 2022, from $14 million.
Spending on lobbyist-backed social events grew dramatically, from $400,000 to $1.1 million, “likely due to an easing of COVID-19 restrictions,” the commission said.
The number of registered lobbyists jumped from about 5,700 to more than 6,100. And the number of clients hiring lobbyists grew 11%, totaling 5,040.
ALBANY — After a pandemic dip, lobbying in Albany has rebounded bigger than ever.
The amount of money spent on lobbying New York state lawmakers hit an all-time high in 2022 — $331 million — according to a report released Monday by the state ethics commission.
That marks a 13% increase over 2021 and easily surpassed any pre-pandemic totals, the commission said.
It wasn’t just total spending. Everything went up: the number of lobbyists; the number of clients paying lobbyists; advertising spending, and the number of lobbyist-related “social events.”
WHAT TO KNOW
- The amount of money spent on lobbying New York state lawmakers hit an all-time high in 2022 — $331 million — according to the state ethics commission.
- That's a 13% increase over 2021 and top issues included health care, the state budget, real estate and housing laws, economic development and education.
- The competition for three downstate casino licenses also spurred about $6 million in lobbying spending.
The top issues included health care, the state budget, real estate and housing laws, economic development and education. The competition for three downstate casino licenses also spurred about $6 million in lobbying spending.
The top spenders were many of the same interest groups that spend the most on lobbying in New York year in, year out.
1199/SEIU, the giant health care union, led all spending with $5.7 million. A related entity, 1199/SEIU United Healthcare Workers East, separately spent $2.3 million and ranked fourth on the 2022 list.
Rounding out the top five were the Greater New York Hospital Association ($3.5 million), gambling company Genting ($2.5 million) and AARP ($2.3 million).
The total spent in 2022 surpassed the state record of $298 million, which was set in 2019, the year before the COVID-19 pandemic hit. That lobbying has bounced back is no surprise to watchdog groups.
“Had the number went down, folks like us would have suspected it was because of bad reporting,” said John Kaehny, executive director of Reinvent Albany, a group that monitors lobbying, ethics, subsidies and other issues.
The reason for the lobbying rise is simple, he said: It often influences state spending and lawmaking.
“It’s an incredibly good investment for special interests. With a million dollars in lobbying, it can turn into tens of millions of dollars of tax breaks or government spending,” Kaehny said.
Health care and education are annually the two biggest shares of the state budget, which runs about $229 billion. So it’s no surprise that, when the ethics commission broke down lobbying by topic, the state budget ranked No. 1 with 769 clients hiring lobbyists on their behalf.
That was followed by real estate (743), economic development (404) and education (298).
A surprise in Top 10
Making an appearance in the top 10 spenders was an entity called Homeowners for an Affordable New York LLC, which spent $1.4 million. It is an alliance that includes the New York State Association of Realtors, the Small Property Owners of New York and the influential Real Estate Board of New York.
The group has been fighting to block the so-called “Good Cause Eviction” bill, which would make it harder to evict tenants. Besides lobbying lawmakers, the group also launched a phone campaign of directly calling city households and urging them to oppose the bill, as reported by The City, an online news platform.
The Good Cause bill, supported by a raft of tenants’ groups and Democratic lawmakers, has been the subject of bitter fights since the pandemic but hasn’t gained legislative approval.
Casinos up, but small overall
The $6 million that companies seeking to land one of three downstate casino license spent on lobbying and advertising was a small share (2%) of overall lobbying, perhaps smaller than watchdogs might have expected, Kaehny said.
Then again, the official bidding period for the licenses didn’t open until January 2023, and spending for this calendar year could be much higher than 2022. The lobbying totals also won't reflect funds companies are spending to build "good will" with potential host communities.
Further, a closer look shows one company accounted for almost half the industry’s total: Genting, which operates Resorts World at Aqueduct Racetrack, spent $2.5 million. And the company hired eight different lobbying firms.
That’s not too unusual in the battle for the licenses, where casino companies often have more than one lobbying firm and some firms hired more than one lobbyist.
Other gambling companies that spent on lobbying included MGM, which operates gambling at Yonkers Raceway ($567,000); Seminole Hard Rock Entertainment, which is partnering with Mets owner Steve Cohen for a potential bid near Citi Field ($495,000), and Las Vegas Sands, which is eyeing a bid at the old Nassau Coliseum ($397,000).
Advertising and events
Spending on advertising grew to nearly $18 million in 2022, from $14 million.
Spending on lobbyist-backed social events grew dramatically, from $400,000 to $1.1 million, “likely due to an easing of COVID-19 restrictions,” the commission said.
The number of registered lobbyists jumped from about 5,700 to more than 6,100. And the number of clients hiring lobbyists grew 11%, totaling 5,040.
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