Cash-Strapped States and Localities Concentrate on Lobbying the Federal Government

Peter Suderman wrote earlier today about how the prospect of a government overhaul of health care is ginning up more and more health-care lobbyists.

Similarly, despite their being legendarily struggling with crushing budget problems (largely caused by their own improvidence--see this May Reason magazine feature), states and localities are finding they can dredge up the cash they need to lobby the federal government for more cash. See from the Wall Street Journal:

Towns, cities, counties and states across the country spent a total of $21.4 million on lobbyists between April and June, up 2.7% from the first quarter of the year and in line with spending levels through 2008, according to data provided by the nonpartisan Center for Responsive Politics. Almost 1,000 different governments reported paying representatives to pursue their agenda. About a quarter reported lobbying specifically about the stimulus package.

In one of those great paradoxes of the deadweight loss caused via all the rent-seeking that government actions engender, they are managing to keep up with 2008 spending levels despite non-2008 revenues:

The National League of Cities has said its members face their worst fiscal problems since 1985. State revenue dropped more sharply in the first quarter of this year than any time since 1952, according to the Rockefeller Institute of Government in Albany, N.Y.

But think of all the stimulus created by companies and governments spending cash to capture more stimulus money! It's like a magical machine of bullshit economic "growth."