California’s local news outlets waiting for Newsom to approve ‘lifeline’

Of the hundreds of bills yet to be signed by Gov. Gavin Newsom for this legislative session, media organizations from throughout the state have rallied behind one: Assembly Bill 2222.

The bill’s authors have said it is a “lifeline” to many local news outlets that for decades have been struggling with budget cuts that have often left communities without reliable, localized news. Nicknamed the Community Newsroom Employment and Workforce Sustainability Act, or the Community NEWS Act, AB 2222 would offer news outlets tax credits for hiring and retaining journalists.

“Across California, newsrooms are shrinking, reporters are being laid off and too many communities are becoming news deserts,” Assemblymember Chris Ward (D-San Diego), one of the bill’s authors, said during an April Assembly Revenue and Taxation Committee hearing. “When local news disappears, we see declines in civic engagement, voter participation and government accountability.”

Since 2002, the U.S. has lost over 80% of its local journalists. In California, 37 counties are either at or below the national average for the number of journalists per 100,000 residents, according to the Local Journalist Index. 

“The bill will keep a local journalist on the job and ensure Californians continue to have access to reliable information about their communities,” bill co-author Sen. Jerry McNerney (D-Pleasanton) said during the bill’s final Senate vote. “If you rely on your local journalists, you'll wanna support this one.”

AB 2222 passed in the Assembly and Senate with partyline votes.

Qualifying local news outlets would receive the following tax credits if Newsom signs the Community NEWS Act into law:

• $20,000 for each full-time journalist;

• $15,000 for each full-time journalist if an outlet employs more than five full-time reporters;

• An additional $15,000 for each reporter working a “new journalism position”; and

• An additional $7,500 for each part-time journalist.

The tax credits would be financed by ending corporate tax breaks for executive compensation over $1 million. 

The California Taxpayers Association and California Chamber of Commerce were among the handful of groups opposed to the bill. The two take up issues with how the bill would increase business’ tax liabilities to fund the credits. 

A coalition of over 130 publishers, media groups, labor unions and more support the bill.

The tax credits “would strengthen local reporting capacity, safeguard the essential coverage communities rely on to stay informed and civically engaged and help rebuild the state's information infrastructure,” reads a support letter the coalition sent Newsom earlier this month.

The California Legislature showed support this session for local news through budget allocations, investing $3 million in ethnic media and $20 million in grants for local outlets.

Newsom has until Sept. 30 to sign or veto the bills left on his desk.