News Summary

Governor Gavin Newsom has announced a dramatic 67% funding cut for California’s Journalism Initiative, reducing the budget from $30 million to $10 million amid a projected $12 billion deficit. This decision raises concerns about the sustainability of local journalism amidst ongoing financial struggles. Advocacy from local journalism leaders urges the state to reconsider the cuts, emphasizing the essential role of journalism in democracy.

California Governor Gavin Newsom has announced a substantial 67% funding reduction for a partnership designed to support struggling newsrooms across the state, a move expected to significantly impact local journalism amid a projected $12 billion budget deficit for the coming year. The state’s revised budget plan, totaling $321.9 billion, will allocate only $10 million for the Journalism Initiative in the 2025-26 fiscal year, a drastic decrease from the anticipated $30 million initially agreed upon.

The funding cut aligns with broader budgetary pressures that have compelled California to implement cuts across various sectors, including healthcare for low-income undocumented immigrants and reductions in overtime for select government employees. The Department of Finance verified the funding cut, citing a drop in projected resources since the budget was initially drafted in January.

The Journalism Initiative, part of the California Journalism Preservation Act championed by Assemblymember Buffy Wicks, was designed to have Google contribute to a fund that would bolster California news outlets based on their employment of journalists. Modeled after a successful Canadian bill requiring Google to support local news, the proposed measure sought to address the financial crises faced by local newspapers. The California News Publishers Association expressed strong support for this initiative, recognizing the critical role of journalism in a democratic society.

Despite these favorable conditions, Google voiced opposition to the California legislation, warning that it could lead them to limit access to California news on their platform. However, in August, a revised agreement was reached, with Google committing nearly $250 million over five years to enhance local newsrooms, along with $68 million allocated for artificial intelligence funding through a National AI Accelerator. According to the initial deal, California would provide $30 million in the first year and $10 million for each of the following four years, while Google would make a payment of $15 million in 2025 and up to $55 million for the journalism fund, alongside an additional $50 million grant for its journalism projects.

As news of the funding cuts spread, leaders in the local journalism sector, such as Rebuild Local News President Steven Waldman, voiced concerns regarding the detrimental impact of reducing financial support during a time when local journalism is already in crisis. Waldman urged the state Legislature to hold public hearings to examine the ramifications of these cuts and to seek constructive solutions that adequately support journalism in California.

This decision to cut funding reflects increasing challenges faced by state governments as they navigate fiscal crises while attempting to uphold essential services. The decline in state support for journalism further complicates an already frail ecosystem, as many newsrooms grapple with reduced advertising revenues and shifting consumer behaviors.

As the state continues to confront its budget challenges, the future of local journalism remains precarious. Advocacy groups and industry leaders are likely to continue pushing for renewed funding arrangements, emphasizing the vital need for robust journalism in safeguarding democracy and informing the public. The implications of the proposed cuts may resonate far beyond the immediate fiscal year, impacting the landscape of news media across California for years to come.

California Reduces Funding for Journalism Initiative by 67%

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Author: HERE Hollywood