Thursday, January 29, 2009 4:48 PM

K Street Gained in '08, Billing $3.2 Billion in Fees

K Street managed to buck the economic slump last year, earning lobbying fees totaling $3.2 billion for 2008, a 13.7 percent gain from 2007, according to the nonpartisan Center for Responsive Politics. The center analyzed data from the lobbying disclosure reports that firms file with Congress in which they disclose their fee income from clients.

"In this economy, most industries would have been elated to grow even half as much as the lobbying industry reported growing last year," said center Executive Director Sheila Krumholz. "The federal government is handing out billions of dollars by the day, and that translates into job security for lobbyists who can help companies and industries get a piece of the payout."

Still, fees at the majority of K Street's biggest lobbying firms dropped for the year. Patton Boggs, the No. 1 firm, saw its fees decline to $38.9 million in 2008 from $42.4 million in 2007. Partner James Christian attributed the decline in part to the tough economy. "All and all, we are not to disappointed," Christian said. "Given the totality of the economic situation and the short congressional year."

CRP spokesman Massie Ritsch said that fees may also have dropped at lobbying firms because corporate clients decided to reduce retainers and rely more heavily on their in-house lobbying teams and trade associations.

Interestingly, the actual number of lobbyists dropped in 2008. The number registered to lobby was 14,453, down almost 1,000 from 15,329 in 2007.

In Friday's issue of National Journal, we take a look at 4 lobbying firms that posted a gain in revenue in the second half of 2008, when the economy's dive was accelerating.

Click here to see the top lobbying firms.
Click here to see CRP's analysis of the biggest spending industries.

                                                                                                                    -- Bara Vaida