Washington lobbying sets record in 2007

By Kevin Drawbaugh

WASHINGTON (Reuters) - Corporations, unions and other interests spent a record-setting $2.79 billion in 2007 on lobbying Washington officials for favorable policies, said a study from a watchdog group released on Thursday.

The Center for Responsive Politics said spending in 2007 eclipsed the previous record in 2006 by $200 million, with health care interests, Wall Street, the real estate industry and insurers among the biggest spenders.

"Lobbying seems to be a recession-proof industry. In some respects, interests seek even more from our government when the economy slows," said Sheila Krumholz, executive director of the 25-year-old group that analyzes data on money in politics.

The latest figures show a year of typical growth for K Street, the nickname often applied to the capital's booming influence industry, but there were notable changes, too.

For instance, the U.S. Chamber of Commerce remained the nation's single-largest spender, with $52.8 million expended in 2007 on in-house and outside lobbyists. But that was down 27 percent from last year, the center said.

Sharply higher spending was seen on other fronts, with private equity firm Blackstone Group LP ramping up its expenditures 477 percent to $5.4 million. The private equity industry successfully halted an effort in Congress recently to raise taxes on the profits of its senior partners.

The National Education Association, the largest U.S. teacher's union, spent $9.2 million last year -- up 464 percent -- amid efforts to reauthorize the No Child Left Behind act.

FACTORS BEHIND INCREASE