Categories: California Business NewsCalifornia State News

California Governor Proposes 67% Cut to Journalism Funding

The California journalism funding crisis reflects broader economic challenges.

News Summary

California Governor Gavin Newsom has proposed a drastic 67% reduction in funding for a program aimed at supporting struggling journalism outlets, amidst a projected $12 billion budget deficit. The financial support for journalism is expected to drop from $30 million to $10 million for the 2025-26 fiscal year, raising concerns about the sustainability of local news operations. Advocates argue this decision could exacerbate the local journalism crisis and are calling for legislative discussions to seek alternative solutions.

California Governor Gavin Newsom has proposed a significant funding cut of 67% to an initiative designed to assist struggling journalism outlets within the state, reducing the anticipated financing from $30 million to only $10 million for the 2025-26 fiscal year. This decision is part of a broader adjustment to the state budget, which is grappling with a projected $12 billion deficit.

The California Department of Finance confirmed that fewer resources are available than originally projected when the budget was first outlined in January. This shortfall necessitates cuts across various sectors, including healthcare for low-income undocumented immigrants and reductions in overtime pay for selected government employees.

Originally, the funding plan was a part of the California Journalism Preservation Act, which was aimed at bolstering local newsrooms through financial support from technology giant Google. This initiative was crafted by Assemblymember Buffy Wicks and intended to ensure that support for journalism is equitable, requiring Google to contribute to a fund shared among California news organizations based on their employment of journalists.

The California News Publishers Association had endorsed this initiative, recognizing the vital role local journalism plays in communities throughout the state. Modeled after a similar legislative success in Canada, where Google contributes around $74 million a year to support local news, the California act aimed to establish a sustainable financial framework for journalism in the state.

In August, following negotiations, a deal was reached which secured nearly $250 million over five years to support California’s local newsrooms, along with an additional $68 million earmarked for artificial intelligence funding via a National AI Accelerator. The original agreement stipulated that California would provide $30 million in 2025 and $10 million yearly for the following four years, while Google was to contribute $15 million in 2025 and a cumulative total of $55 million towards the journalism fund. Additionally, Google had pledged $50 million toward enhancing its journalism programs to support news offerings.

However, with the impending budget cuts, advocates for local journalism have expressed dismay, arguing that this reduction sends California in the wrong direction amid a severe local journalism crisis. Many are calling for legislative discussions to address these significant funding cuts and to seek solutions that will better support the journalism sector.

The overall impact of these funding reductions on California’s journalism landscape remains to be seen, but it raises concerns over the sustainability of local news operations that have already been under financial pressure. Maintaining healthy journalism is crucial for public discourse and democracy, and the ongoing adjustments to state funding reflect larger economic strains that could threaten the viability of newsrooms across California.

As the revised state budget plan stands at $321.9 billion, it remains crucial for stakeholders, including legislative leaders and journalism advocates, to engage in dialogue about the importance of supporting journalism, especially during challenging fiscal times. As California moves forward, the balance between budgetary constraints and the need for robust local journalism will be a focal point for both policymakers and the public.