WASHINGTON, D.C. — Hawaii interests are significantly scaling back on federal lobbying, the result of changes in the political landscape that are making it tougher to get issues through Congress and secure dwindling federal dollars.

According to federal lobbyist disclosure forms, Hawaii’s local governments, corporations and organizations spent only $960,000 on federal lobbying last year, less than half of the $2.6 million they spent in 2009. And according to the disclosure reports filed with the U.S. House and Senate before the April 20 filing deadline, the reduction in lobbying has continued this year. Local organizations reported spending $230,000 on lobbying during the first quarter of this year as compared to $285,000 during the same period last year.

A number of factors appear to be at play, including the decline in federal earmarks to political roadblocks facing the long-sought federal recognition for Native Hawaiians. As a result, some in the state have changed strategy, moving away from traditional lobbying toward what they consider more productive forms of advocacy.

Though no one is explicitly backing off from the push for Native Hawaiian federal recognition, lobby disclosure forms show much less money being spent to try to push that bill through Congress. During the height of spending in 2009, Hawaii’s Democratic delegation were part of a Democratic majority in both the U.S. House and Senate. Republicans now control the House. While Hawaii lost significant political power with the death of Sen. Daniel Inouye and the retirement of Sen. Daniel Akaka, the reduction in lobbyist spending began before their departures.

Federal lobby disclosure records show lobbyist-spending by Hawaii-based interests have declined sharply in recent years.

Take Kamehameha Schools. The organization spent $640,000 on federal lobbying in 2009, the largest amount of any Hawaii entity that year. Last year, records show, the group only spent $20,000 on federal lobbying. Federal disclosure forms show Kamehameha has spent no money on lobbying this year.

Kamehameha Schools spokesman Kekoa Paulsen said the organization’s contract with Gump Strauss, Hauer & Feld — one of Washington D.C.’s largest lobbying firms — was to research, “analyze and monitor legislative proposals that could potentially impact the education and well-being of Native Hawaiians.”

In 2009 and 2010, Paulsen said, “Federal recognition of Native Hawaiians and the reauthorization of several Native Hawaiian education measures were matters of significant discussion and debate. The higher (lobbying) fees for that period reflect that.”

“We were not involved in further discussion of those matters at the federal level in 2011 and 2012, which corresponds to the substantial drop in lobbying expenses for (Kamehameha Schools),” he said.

OHA Changes Strategy With D.C. Staffer

Similarly, the Office of Hawaiian Affairs reduced its federal lobbying spending from $290,000 in 2009 and $310,000 in 2010 to $130,000 in 2011 and only $10,000 in 2012. Disclosure forms show the office has spent less than $5,000 on lobbying this year.

Office spokesman Garett Kamemoto said OHA had also focused on the Akaka Bill during the years of high lobbying spending. But he said, “I don’t think there was a huge push for the Akaka Bill last year.”

The decline in spending was also a reflection of a change of strategy. Instead of focusing on the Akaka Bill by contracting with high-powered Washington, D.C. lobbying firm Patton Boggs, the office shifted its focus toward working on other ways to improve the lot of Native Hawaiians. OHA has now hired an in-house staffer stationed in the nation’s capitol.

Though OHA Washington D.C. Bureau Chief Kawika Riley performs some functions performed by Patton Boggs, including monitoring legislation and working with department staff of issues that affect Native Hawaiians, the office has broadened its work.

For instance, Riley said the office worked with George Washington and Americian universities to get more Native Hawaiians to apply for programs to help work on policy issues.

“Both of these programs give Native students (including Native Hawaiians) a full ride scholarship to study policy and intern in Washington, D.C. Programs like these help our future leaders learn about the federal policy process, so they can bring that knowledge home to our people,” Riley said.

In an article in Civil Beat after the D.C. Bureau was re-opened last November, OHA Chief Advocate Breann Nuuhiwa said the office’s new leadership envisioned an “expanded federal advocacy arm.” She said, “We need people on the ground in D.C. who can advocate for a policy change on the federal level … and we can get some synergy between federal and state agencies and bodies so we can have an impact and have that systemic change we’re looking for.”

An example, she said, was the flap over Hawaiian language students being forced to take translated state tests due to the way federal education policy was applied. Students struggled with the translated English version because developing a true Hawaiian version could cost millions.

Riley’s work is not counted towards lobbying spending because advocacy by public employees is not considered lobbying. Riley says that his work isn’t lobbying.

“We are a small state office that works with members of the federal policy community to improve the lives of Hawaii’s indigenous people. Especially at this time, it’s critical for Washington, D.C. to understand the federal government’s trust responsibility to Native Hawaiians,” he said.

Local Governments Focus On Grants Instead of Earmarks

The County of Kauai has also shifted its federal strategy because of the changing political landscape. According to federal records, the county paid D.C. lobbying firm, the Ferguson Group, $90,000 in 2009 and only $60,000 in 2010.

Kauai managing director Gary Heu said that as Congress began restricting earmarks, the county opted to de-emphasize lobbying for budget appropriations. Instead it began contracting with another Washington, D.C. firm, Smith, Dawson & Andrews, that specializes in getting federal grants. The county is spending $55,000 on the contract.

“The fact there are no longer congressional earmarks, we felt it was important to find a consultant to help us be as successful as we could in getting grants,” Heu said.

“We’re stuck out here in the middle of the Pacific. It’s not a quick plane ride for us to meet with an agency (in Washington, D.C.). The consultant understands who’s who, and has a relationship with various agencies.”

He said that when Kauai got turned down for a grant, the consultant would “immediately contact that agency and ask for a review of our applications … (and) make our application stronger,” Heu said. The consultant, he said, helped the county get a number of federal grants, including for fire fighting equipment.

The consultant’s contract is subject to disclosure laws because it involves an outside entity and not a public employee.

Hawaii Companies Scale Back

Others that have scaled back federal lobbying include the James Campbell Company, a Kapolei-based national real estate company. The company spent $170,000 in 2009, but only a fourth of that — $40,000 — in 2011. The company reported no spending last year. A company spokesman did not return phone calls.

Hawaiian Telcom Communications, which spent $127,000 in 2009 and $52,500 in 2010, also hasn’t reported lobbying activity in the past two years. Company spokesman R. Scott Simon said the company hired the Washington, D.C. lobbying firm, e-Copernicus, to help try to get federal grants to expand broadband wiring. He said the company considers the work “consulting rather than traditional ‘lobbying,’” but fills out disclosure forms anyway.

The state Department of Hawaiian Homelands has also scaled back its lobbying, spending $50,000 last year, less than half of the $110,000 it spent in 2009. The agency also did not return phone calls last week.

Hawaii’s decline in lobbying mirrors a national trend, in which lobbying spending and the number of registered federal lobbyists have declined in recent years, according to a recent report by the Washington, D.C.-based Center for Responsive Politics. The report cited such possible factors as cutbacks in the struggling economy and political gridlock in Congress that’s made getting a return for lobbying more difficult.

However, the report said federal lobbying reforms passed in 2007 may have inadvertently given lobbyists an incentive to avoid disclosing their lobbying activities. One provision bars lobbyists from working in the Obama administration for five years.

The center noted that although 1,732 lobbyists nationally dropped their lobbying registrations in 2012, many were still working for the same firms the following year.

“These former lobbyists have not moved far, and they are still likely influencing policy from the shadows…” the report said. The former lobbyists “continue influencing policy from ‘behind the scenes.’ By working as policy advisors and in other ‘non-lobbyist’ positions, former lobbyists can keep their current jobs but escape the consequences of being a registered lobbyist, leading people in and out of lobbying to suggest that those consequences act as a deterrent to transparency.”

While the General Accounting Office checks whether lobbying disclosure forms are accurate, it does not check to see whether everyone who should be filing lobbyist reports — including those working on Hawaii issues — are doing so.

Where The Cash Still Flows

Despite the decline in spending, disclosure reports show a number of Hawaii interests are still spending money to affect federal policy — though much less than what the top spenders had spent a few years ago.

Topping the list last year was The Hawaii Medical Service Association/Blue Cross Blue Shield of Hawaii, which spent $90,000 to contract with a Washington, D.C. lobbyist. According to Jennifer Diesman, vice president for government relations, HMSA was concerned about potential cuts to Medicare as well as the details for implementing health care exchanges as part of the Affordable Care Act.

Another company that hasn’t backed off on lobbying spending is the Hawaii Sugar Cane League, which spent $80,000 on federal lobbying each of the past two years on the Farm Bill.

Top Hawaii lobbying spenders last year also included the Maui Memorial Medical Center, which spent $60,000 on “general health issues.” Maui Economic Opportunity, Inc., a non-profit social services agency, also spent $60,000 to lobby for federal budget funding.

The Department of Hawaiian Homelands, spent $50,000, to lobby for federal housing funds.

The VisionSafe Corp., a Kaneohe-based company that makes equipment to allow pilots to see with smoke in the cockpit, also spent $50,000 lobbying Congress and the Federal Aviation Administration on airline safety regulations.

Many of those same players are at the top federal lobbying so far this year. In the first quarter of this year, HMSA reported spending $22,500 on lobbying. The Hawaii Sugar Cane League and VisionSafe have each spent $20,000. The Hawaii Longline Association has also spent $20,000 on a number of issues related to fishing vessels including crew visas and customs requirements, according to its disclosure form.

The University of Hawaii has hired a lobbyist to try to gain research funds. University spokeswoman Kelli Trifonovitch said the university has a contract with National Group, also a Washington, D.C. lobbyist, to spend up to $90,000 through June to get research grants. The university has a 10-year goal to expand its research work.

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