California Governor Proposes Major Cuts to Newsroom Funding

Categories: California Business NewsCalifornia News

Local newspapers in California face significant funding challenges amid budget cuts.

News Summary

California Governor Gavin Newsom has proposed a drastic 67% cut in funding aimed at supporting local newsrooms through a partnership with Google. The budget reduction comes as the state faces a $12 billion deficit, decreasing anticipated support from $30 million to just $10 million for the 2025-26 fiscal year. This funding was originally part of the California Journalism Preservation Act, which aimed to alleviate financial strains on local newspapers. Leaders in journalism express deep concern over the impact of these cuts on the future of local news in California.

California Governor Gavin Newsom has proposed a significant reduction of 67% in funding for a partnership with Google that was designed to support struggling newsrooms across the state, amidst a looming budget deficit of $12 billion. This cut means that local journalism initiatives, which had anticipated receiving $30 million as part of the state’s budget, will now only see $10 million allocated for the 2025-26 fiscal year.

The California Department of Finance confirmed the funding cut, attributing it to reduced financial resources compared to earlier budget estimates. This revised state budget plan amounts to $321.9 billion, and it includes cuts to various services, including healthcare for low-income undocumented immigrants and reductions in overtime for select government employees.

This funding was originally part of the California Journalism Preservation Act, which was proposed by Assemblymember Buffy Wicks. This act sought to create a mandatory contribution from Google, to be distributed among California news organizations based on their number of journalists. The initiative received backing from the California News Publishers Association, which aimed to alleviate financial pressures facing many local newspapers.

The inspiration for this act was drawn from a similar legislation in Canada, where Google contributes approximately $74 million annually to support local news initiatives. However, Google opposed the California bill, expressing concerns it could result in the removal of California news from their platform, thus limiting access for residents.

In August, a settlement was reached between the state and Google, resulting in a commitment of nearly $250 million over five years to bolster local newsrooms. Additionally, there was a promise of $68 million designated for artificial intelligence funding via a National AI Accelerator. The financial breakdown at that time included a commitment from California for $30 million in 2025 along with $10 million for each of the following four years. Google was to contribute $15 million in 2025 and a total of $55 million to the journalism fund, alongside an additional grant of $50 million for enhancing its own journalism programs.

As the budget challenges persist and financial pressures intensify, the landscape of journalism in California faces significant uncertainty. With local newsrooms struggling to maintain operations, these funding cuts could further exacerbate the crisis affecting the state’s media landscape. The emphasis on local news as a necessary part of community engagement and information sharing underscores the potential ramifications of the state’s budget decisions.