News Summary
California Governor Gavin Newsom has proposed a 67% cut to journalism funding, reducing it from $30 million to $10 million in the 2025-2026 fiscal year amidst a $12 billion budget deficit. This cut affects efforts to support local newsrooms, which were expected to benefit from the California Journalism Preservation Act and a partnership with Google. The local journalism community has expressed concern over the potential negative impacts on quality reporting and community information access.
California Governor Gavin Newsom has proposed a significant 67% funding cut to a journalism initiative that had aimed to support struggling newsrooms across the state. The planned reduction would bring the funding down from $30 million to just $10 million for the upcoming 2025-2026 fiscal year. This decision comes as California grapples with a projected $12 billion budget deficit, which has led to widespread cuts in various state programs.
The California Department of Finance confirmed the funding reduction, indicating that the state has fewer resources available than initially anticipated in its January budget proposal. Newsom’s announcement regarding the budget shortfall has prompted a reassessment of state spending priorities, resulting in proposed reductions in multiple areas, including healthcare for low-income undocumented immigrants and reduced allocation for overtime pay for select government employees.
The funding reduction directly affects a previously established agreement aimed at enhancing local journalism through support from technology giant Google. Newsrooms in California had been preparing to benefit from a forecasted state contribution as part of the California Journalism Preservation Act, which was originally proposed by Assemblymember Buffy Wicks (D-Oakland). This act mandated Google to contribute to a fund, which would then allocate resources to California news outlets based on their employment of journalists.
Last August, a deal between the state and Google resulted in a commitment of nearly $250 million over a five-year period to bolster local newsrooms, alongside an additional $68 million for funding related to artificial intelligence via a National AI Accelerator. The initial agreement indicated that California would provide $30 million in 2025, followed by annual payments of $10 million for the next four years. Google, in turn, agreed to a $15 million payment in 2025 and an overall total of $55 million directed towards the journalism fund, as well as a separate $50 million grant to support its own journalism initiatives.
The proposed cuts to journalism funding have stirred significant concern and criticism among leaders in the local journalism community. Advocates emphasize that these financial diminutions come at a precarious time when many local news organizations are already facing overwhelming challenges. The president of the Rebuild Local News organization highlighted the detrimental impact of these cuts and called for legislative hearings to address the fallout from reduced funding for journalism in California. The community is urged to work collaboratively towards effective solutions that can sustain and support the journalism sector in the state.
The earlier initiative was inspired by a similar law in Canada, which has seen Google contribute approximately $74 million annually to support local news efforts there. However, Google had opposed the California legislation due to concerns that the measures could force the company to limit access to California news on its platform, thereby restricting public availability of important local information.
As California faces an increasing budget deficit, the future of local journalism funding remains uncertain. The implications of these cuts could have wide-ranging effects on the ability of news organizations to maintain quality reporting and serve their communities effectively. Stakeholders in the journalism field are now urging state lawmakers to reconsider the cuts to ensure that local journalism remains a viable and vibrant part of California’s information landscape.
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