New Study Shows Growth in State Lobbying
The Public Affairs Council has published its "State Government Relations Benchmarking Report," which underscores the growing importance of state government relations.
Nearly nine out of ten respondents say their department covers more issues than in the past, and companies are devoting more resources to the function. Fifty percent report higher budgets over the past three years, compared to 32% in 2004. While 53% of companies report budgets under 1.5 million, 18% have budgets of more than $5 million.
Most of the increased budget dollars go to hire contract lobbyist or consultants with specialized knowledge of state issues — not increasing staff.
More then one-third of companies have engaged in state government relations for over 20 years, but 27% established departments to handle this activity within the past five years.
The study finds companies often “play defense” at the state level. More than two-thirds of their departments’ goals and objectives are reactive in nature, while only 30% of the goals are pro-active.
The influence of heads of corporate public affairs departments, and of operating units and divisions, in prioritizing state government relations goals has waned. Heads of the functions (as well as CEOs) influence SGR goal-setting more strongly than in the past.
For more information, go to www.pac.org/publications.
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