California deal is “step forward:” Rebuild Local News responds to new California deal to have Big Tech provide financial support to local newsrooms

Although there is much left to do, the deal announced today by Google, Governor Newsom and Assembly Member Buffy Wicks is a step forward and a down-payment on a strategy to revive local news in California. Along with similar steps taken recently in New York and Illinois, there is now a real movement underway to help save local news through public policy.”

Rebuild Local News President Steven Waldman

In response to the deal announced by Governor Newsom and Assembly Member Wicks, Rebuild Local News President Steven Waldman commented:

“Although there is much left to do, the deal announced today by Google, Governor Newsom and Assembly Member Buffy Wicks is a step forward and a down-payment on a strategy to revive local news in California. Along with similar steps taken recently in New York and Illinois, there is now a real movement underway to help save local news through public policy. The deal would apparently provide $45 million ($15 million from Google; $30 million from the government) in new funding in the first year for local newsrooms, and some support still to be determined in out years.

 Here’s what we appreciate about the deal:

• • It would create a subsidy for local newsrooms, pegged to the number of editorial employees, rather than the number of links or web traffic (as earlier plans had envisioned).  

• • Both the government and a technology company have recognized that the local news crisis seriously harms communities, and needs a collective response. This will hopefully create a strong precedent for other states and companies.

• • The deal will probably not prompt Google or Meta to pull news from their platforms, as they have threatened in the past, and preserves existing programs such as the Google News Initiative.

Rebuild Local News’ California members have worked hard with the legislators to move forward legislation to address the deepening crisis in local news, and we’re grateful to Governor Newsom, Assembly Member Wicks, State Senator Steven  Glazer, Senate President Pro Tempore Mike McGuire, and all who have worked so diligently on this issue. The deal apparently would provide $45 million

However, there is more work to be done if the crisis is to be truly addressed:

• • The subsidy is not nearly enough to address the massive scale of the problem facing local newsrooms in California. The number of journalists has declined by 68% in the last two decades, or by about 5,000 in California.  To get even back to that level, we’ll need $375 million per year between earned revenue, philanthropy and the government, or about $125 million from the government. The final details have not been released but if it’s close to earlier versions, the plan will provide $45 million in the first year or between $7,000 and $10,000 per editorial employee for each newsroom.

• • Google is agreeing to less than it has elsewhere. In California, Google is providing $15 million in new money in the first year compared to $60-$65 million in Canada.   

• • The deal does not require contributions from the other big technology firms, including Meta and Amazon, as SB1327 did. Having a broader base of support is both fair and would increase the amount of money supporting local journalism jobs in California.  SB 1327 would have provided $500 million per year for local newsrooms.

• • Because the plan is relatively small, public radio and local TV are also not included.

• • It may be insufficiently open to helping startups. Based on the last available drafts of the framework, only news organizations that have been operating for at least two years and with a minimum annual revenue of $100,000 would be eligible.  

• • The governance body envisioned (at UC Berkeley’s journalism school) is not sufficiently representative of the California local news field or the communities it serves. For instance, the board of directors that will oversee the distribution of the jobs program funds does not include a dedicated representative from the nonprofit local news sector, nor does it include a representative of the community foundations.  In addition, the California State Universities should have a major role administering this program, not just UC Berkeley.

• • There are no transparency requirements. It’s unclear  how much of that the National AI Accelerator is in cash vs. in kind services. It’s also not clear whether the AI fund will ameliorate or accelerate the possibility that AI will reduce the number of journalism jobs. Since this fund is being established at an independent nonprofit with no mandated transparency or reporting requirements.

• Our bottom line is this is a step forward that will bring some much-needed help to struggling community newsrooms. Nonetheless, those who care about local news should continue to fight for more effective support for the outlets that inform California’s communities in the coming years.”

These are the views of the Rebuild Local News staff and do not reflect a unanimous view of the organizations in our coalition. 

Rebuild Local News has been actively involved in pressing a solution in California. It worked to develop SB1327 and push it forward, culminating in a dramatic 27-7 vote in the Senate. Rebuild Local also worked with Assembly Member Wicks to alter AB886 so funds were distributed based on the number of editorial employees rather than the number of links or traffic.  The success of these bills put pressure on Google to reach a settlement to provide funds for local news.