Spending on lobbying firms topped $463 million through 18 months of legislative cycle

Special interest groups, AKA “lobbyist employers,” paid lobbying firms more than $82 million to lobby members of California’s state government in the second quarter of 2024, according to a Capitol Weekly analysis of lobbying firm reports.

As always noted in our quarterly roundup of such spending, that number doesn’t include all of the money spent on lobbying during the sixth quarter of the 2023-24 legislative cycle, as lobbying firm disclosure reports don’t include wages and expenses for in-house lobbyists.

The $81 million represents a 6 percent increase from the amount spent in the first quarter of 2024, after accounting for disclosure amendments. According to the updated figures, special interests spent the most on lobbying firms so far during the two-year cycle in that second quarter of 2024. The second-highest quarter was the fourth of 2023, with lobbyist employers paying more than $79 million to lobbying firms.

Special interests spent the least amount of money during the first quarter of last year, more than $71 million, again according to figures updated after amended disclosures.

For the first six quarters of the 2023-24 legislative cycle, special interests paid more than $463 million to lobbying firms, according to California Secretary of State disclosures analyzed during late July and early August. (NOTE: Capitol Weekly reports the time frame in which we have gathered our data because the filing of subsequent amendments can change totals. We also note that we try at every turn to catch any mis-formatted data in order to avoid any miscounts. Scraping numbers from Cal-Access, however, can be an imperfect process and mis-formatted data isn’t always properly flagged in spreadsheet calculations. Please contact us if you see any incorrect totals.)

Special interest groups, AKA “lobbyist employers,” paid lobbying firms more than $82 million to lobby members of California’s state government in the second quarter of 2024, according to a Capitol Weekly analysis of lobbying firm reports.

Capitol Weekly’s analysis aggregates the total dollar value of all lobbying payments received by lobbying firms that are registered with the state, as disclosed on Form 625, which is filed quarterly with the SoS.

The Form 625 is only for lobbying firms, which are defined as businesses “compensated to communicate directly with any state, legislative or agency official to influence legislative or administrative action on behalf of a client.”

As expected, the top firms from previous quarters generally remained top firms in the sixth quarter, although their rankings changed – and a few firms moved up the totem pole.

John Latimer’s Capitol Advocacy, the top earning firm in the first and third quarters of 2023 and the first quarter of 2024, was knocked out of the top spot this quarter by Bob White’s California Strategies, which also was the top earning firm in the second quarter of 2023.

California Strategies, known better as CalStrat around the Capitol community, reported receipts of nearly $2.8 million, followed by Capitol Advocacy’s little more than $2.7 million. Coming in third was  Jared Ficker, Cassie Gilson, Jason Kinney, Dustin Moore and Kevin Schmidt’s Axiom Advisors, the top earner from the Q4 of 2023, which reported receipts of $2.33 million in the sixth quarter.

Five other lobbying firms reported making more than $2 million in the second quarter of 2024:

• Platinum Advisors ($2.32 million)
• KP Public Affairs (nearly $2.3 million)
• Weideman Group ($2.12 million)
• Townsend Public Affairs ($2.11 million)
• Shaw Yoder Antwih Schmelzer & Lange (more than $2 million)

Twelve more firms reported making more than $1 million in the sixth quarter:

• Campbell Strategy & Advocacy (more than $1.4 million)
• Lang Hansen Giroux & Kidane (nearly $1.4 million)
• Nielsen Merksamer Parrinello Gross & Leoni (more than $1.3 million)
• Aaron Read & Associates ($1.272 million)
• Political Solutions ($1.271 million)
• Deveau Burr Group ($1.23 million)
• Sloat Higgins Jensen and Associates (more than $1.2 million)
• Niemela, Pappas and Associates (nearly $1.2 million)
• Caliber Strategies (nearly $1.1 million)
• Fernandez Jensen Kimmelshue Government Affairs (nearly $1.07 million)
• Actum (nearly $1.05 million)
• California Advisors (more than $1.04 million)

Both the Deveau Burr Group and Caliber Strategies topped $1 million for the first time in a quarter this cycle. Caliber Strategies, led by founding partner Manal Yamout McDermid (and whose partners include Susan Kennedy, a former top aide to Govs. Gray Davis and Arnold Schwarzenegger) has been around since 2017, according to SoS records.

But as Capitol Weekly reported in May, the Deveau Burr Group didn’t exist until the end of 2024. The firm was born out of the bankruptcy of Strategies 360, a once-perennial top firm in Sacramento, with other locations in Alaska, Arizona, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Texas, Utah, Vancouver, Washington and Washington, D.C.

Virtually all of Strategies 360’s Sacramento-based lobbyists and clients jumped ship, with most of them transferring to the newly formed Deveau Burr Group, headed by former Strat 360 president Andrea Deveau and former head of Strat 360’s Bay Area office Timothy Burr Jr.

The 20 firms that reported receipts of more than $1 million for the sixth quarter received 41 percent of all money paid to lobbying firms during the period.

One other firm – California Advocates – reported making more than $900,000 in the sixth quarter. Six more firms reported payments of more than $800,000: Edelstein, Gilbert, Robson & Smith, Joe A. Gonsalves & Son, Arc Strategies, McHugh Koepke Padron Government Relations, Brownstein Hyatt Farber Schreck and Resolute.

One hundred and fifty-two firms reported receiving six figures or more in payments in Q6. At least another 157 firms reported receiving five figures in payments.

The 20 firms that reported receipts of more than $1 million for the sixth quarter received 41 percent of all money paid to lobbying firms during the period.

For the first six quarters of the 2023-24 legislative cycle, two firms reported receiving more than $15 million: Capitol Advocacy (nearly $15.9 million) and California Strategies (more than $15.3 million). Axiom Advisors just missed that milestone, reporting $14.2 million in receipts year to date.

Five other firms reported a total of eight-figures in receipts:

• Platinum Advisors (nearly $12.5 million)
• KP Public Affairs ($12.2 million)
• Weideman Group (nearly $12.2 million)
• Shaw Yoder Antwih Schmelzer & Lange (nearly $11.9 million)
• Townsend Public Affairs ($11.7 million)

These eight firms received more than a fifth of all payments to lobbying firms during the first six quarters of the legislative cycle.

Seven more firms reported making more than $7 million: Nielsen Merksamer Parrinello Gross & Leoni (nearly $7.7 million), Lang Hansen Giroux & Kidane ($7.6 million), Niemela, Pappas and Associates (nearly $7.6 million), Campbell Strategy & Advocacy ($7.5 million), Political Solutions ($7.4 million), Sloat Higgins Jensen and Associates (nearly $7.4 million) and Aaron Read & Associates (nearly $7.3 million).

Another 10 firms reported making more than $5 million:

• California Advocates (nearly $6 million)
• California Advisors (nearly $5.9 million)
• Carter, Wetch & Associates ($5.8 million)
• Actum (nearly $5.8 million)
• Fernandez Jensen Kimmelshue Government Affairs (nearly $5.4 million)
• Strategies 360 (nearly $5.37 million)
• Sacramento Advocates (nearly $5.3 million)
• Caliber Strategies ($5.2 million)
• Joe A. Gonsalves & Son (nearly $5.2 million)
• Edelstein, Gilbert, Robson & Smith (more than $5 million)

These 25 top firms received 46 percent of all payments to lobbying firms over the first six quarters.

Eight additional firms reported making more than $4 million:

• Carpenter Garcia Sievers (nearly $4.8 million)
• Governmental Advocates (nearly $4.75 million)
• Arc Strategies (nearly $4.67 million)
• McHugh Koepke Padron Government Relations (nearly $4.4 million)
• Resolute (nearly $4.3 million)
• Capitol Advisors Group ($4.2 million)
• Lighthouse Public Affairs ($4.1 million)
• Cruz Strategies (more than $4 million)

Ten more firms reported making more than $3 million through the first six quarters of the legislative cycle:

• Miller Cespedes and Associates ($3.85 million)
• The Gualco Group (nearly $3.85 million)
• Public Policy Advocates (nearly $3.8 million)
• Brownstein Hyatt Farber Schreck (nearly $3.6 million)
• Buchalter (nearly $3.5 million)
• Samson Advisors ($3.4 million)
• Aprea & Company (nearly $3.3 million)
• Capitol Strategies Group ($3.2 million)
• Kahn, Soares, & Conway ($3.1 million)
• Manatt, Phelps & Phillips (nearly $3.1 million; note they did not have a Q6 filing by the time of this writing)

An additional 16 firms have reported earning more than $2 million thus far through the cycle:

• Hurst Brooks Espinosa (nearly $3 million)
• Omni Government Relations ($2.93 million)
• Kate Bell Strategies ($2.9 million)
• Norwood Associates (nearly $2.9 million)
• Nossaman ($2.8 million)
• Balance Public Relations & Strategic Solutions ($2.7 million)
• Fanslau Government Affairs ($2.6 million)
• Mosaic Solutions and Advocacy (nearly $2.6 million)
• California Advocacy ($2.5 million)
• Greenberg Traurig ($2.4 million)
• Politico Group (nearly $2.4 million)
• Capitol Strategic Advisors ($2.3 million)
• Rostrum (nearly $2.2 million)
• Deveau Burr Group ($2.1 million)
• Capitol Connection (nearly $2.1 million)
• The Law Offices of Alberto Torrico ($2 million)

These 59 firms received 70 percent of all payments to lobbying firms over the first 18 months of the cycle.

Forty-four more firms reported earning more than $1 million during the first six quarters of the 2023-24 legislative cycle:

• School Services of California (nearly $2 million)
• Pinnacle Advocacy ($1.96 million)
• Houston Magnani and Associates (nearly $1.96 million)
• CA Lobby (nearly $1.9 million)
• Murdoch, Walrath & Holmes (nearly $1.88 million)
• Kester/Pahos ($1.804 million)
• Renne Public Policy Group ($1.801 million)
• Capitol Partners (nearly $1.8 million)
• WPSS Group (nearly $1.77 million)
• Third House (nearly $1.7 million)
• Reeb Government Relations ($1.64 million)
• Noteware Government Relations (nearly $1.62 million)
• West Coast Advisors ($1.6 million)
• Ellison Wilson Advocacy (nearly $1.6 million)
• Clear Advocacy ($1.53 million)
• Valencia Government Relations ($1.51 million)
• The Apex Group (nearly $1.51 million)
• Broad and Gusman Governmental Advocacy (nearly $1.4 million)
• Knudsen & Associates ($1.38 million)
• Resilient Advocacy ($1.3 million)
• Madden Quinonez Advocacy (nearly $1.3 million)
• Khouri Consulting ($1.28 million)
• Paula Treat (nearly $1.28 million)
• Conservation Strategy Group (nearly $1.243 million)
• Villines Group ($1.242 million)
• Pacific Policy Group ($1.222 million)
• JGC Government Relations ($1.219 million)
• Chris Kahn Consulting ($1.215 million)
• Precision Advocacy ($1.213 million)
• MVM Strategy Group ($1.2 million)
• Hurner Government Relations and Advocacy (nearly $1.2 million)
• RSG Consulting & Advocacy ($1.197 million)
• Dunn Consulting (nearly $1.18 million)
• Arnold & Associates ($1.16 million)
• Arrow Advocacy (nearly $1.13 million)
• The Flanigan Firm ($1.11 million)
• London & Gonzalez Advocacy ($1.108 million)
• Heyworth Government Affairs ($1.104 million)
• Prime Strategies (nearly $1.1 million)
• Kellison Company ($1.097 million)
• MGI Advocacy (nearly $1.088 million)
• Fearless Advocacy ($1.087 million)
• Bryant Government Affairs ($1.05 million)
• Matt Back Government Relations ($1.03 million)

The 103 firms that earned more than $1 million over the first six quarters of the legislative cycle received 83 percent of all payments made to lobbying firms during that time.

An additional 185 firms reported making six figures during the first six quarters. An additional 90 firms reported making five figures during the first six quarters.