Why we need federal assistance to help save local news

Photo (cc) 2011 by Oregon Department of Transportation

Previously published at GBH News.

Can government help solve the local news crisis? The notion sounds absurd, even dangerous. You get what you pay for, and if government officials are funneling money to media outlets, then it’s not unreasonable to expect that they’ll demand sticky-sweet favorable coverage in return.

Yet the situation is so dire that once-unthinkable ideas need to be on the table. Since 2004, some 2,100 newspapers have closed, leaving about 1,800 communities across the country bereft of coverage. About 30,000 newsroom jobs disappeared between 2008 and 2020. The consequences range from the potential for increased corruption to a decline in voter turnout for local elections.

Now federal legislation long in the making may finally be ready to move ahead. Believe it or not, the bill is bipartisan. It also manages to avoid the entangling alliances that would endanger journalistic independence. That’s because the Local Journalism Sustainability Act, introduced in the Senate last week and in the House a month earlier, relies on tax credits rather than direct government assistance.

“This clever, bipartisan bill would provide more help for local news than any time in about a century, yet it’s done in a very First-Amendment-friendly way,” writes Steven Waldman, the co-founder of the Rebuild Local News Coalition as well as the co-founder and president of Report for America. (Disclosure: Report for America, which places young reporters at news organizations around the country, is part of the GroundTruth Project, affiliated with GBH in Boston.)

So how would the bill work? Essentially, it would provide three tax credits that would expire after five years, giving media outlets some runway to move toward long-term sustainability. I am oversimplying, but here is the rough outline:

• News consumers would be able to write off $250 a year that they spend on subscriptions or on donations to nonprofit news organizations.

• News organizations would receive tax benefits for hiring or retaining journalists.

• Local small businesses would receive tax credits for advertising in local newspapers and news websites and on television and radio stations.

The benefits would be restricted to small news organizations, defined as those with 750 employees or fewer in the House bill or fewer than 1,000 in the Senate bill.

At a time when Congress seems incapable of doing anything, some version of the bill appears to stand a good chance of passing. After all, elected officials, regardless of party or ideology, like to be covered by the hometown press, and the bill would help ensure that there will continue to be a press. As of Tuesday, there were 32 co-sponsors in the House — 25 Democrats and 7 Republicans. Because the Senate version was just introduced, the only co-sponsors so far are the three Democrats who introduced it — Maria Cantwell of Washington state, Ron Wyden of Oregon and Mark Kelly of Arizona.

Among the all-Democratic Massachusetts delegation, Sen. Ed Markey will support the bill and has asked to be a co-sponsor, says Markey spokeswoman Giselle Barry. Sen. Elizabeth Warren is studying the legislation and has not yet stated a position, according to Warren spokeswoman Nora Keefe. On the House side, Reps. Jim McGovern and Seth Moulton are co-sponsors, and Mary Rose Tarpey, a spokeswoman for Rep. Stephen Lynch, says that Lynch will also be a co-sponsor, as he was during the previous session.

Government assistance for news is not new. During the early days of the republic, postal subsidies were the foundation upon which the distribution system for newspapers and magazines was built. Today, nonprofit news organizations ranging from hyperlocal websites to public broadcasters benefit from tax incentives that allow their donors to write off the money they give and that exempts the media outlets themselves from having to pay taxes.

Given the catastrophic state in which journalism finds itself, some activists and scholars are calling for more direct funding of news. For instance, Victor Pickard, a scholar at Penn’s Annenberg School, advocates much higher government spending on public media. Longtime media reformer Robert McChesney has talked about giving as much as $35 billion over five years to elected citizens councils that would fund local news and underwrite startups.

But there are dangers in such approaches. In Pennsylvania, for instance, the Republican-dominated legislature cut off $750,000 to the state’s seven public radio and television stations after one of them, WITF Radio of Harrisburg, began calling out any elected official who continued to challenge the validity of President Joe Biden’s electoral victory.

Philadelphia Inquirer columnist Will Bunch, while conceding there was no evidence of a direct cause-and-effect over what was admittedly a small amount of funding, wrote in his weekly newsletter that the action “shows the enormous peril of government dollars for journalism, even as a partial solution. In an era when a growing number of elected officials are waging war on the truth, from election results to coronavirus vaccines, would journalists be forced to choose between an important story or their survival?”

By contrast, the federal bill under consideration avoids those problems by putting as much distance as possible between elected officials and the aid that news organizations would receive.

My one reservation about the bill is that chain-owned newspapers would benefit along with independent projects. That said, the Rebuild Local News Coalition, whose members represent more than 3,000 newsrooms, includes some of the most public-spirited organizations that are working on these problems, such as LION (Local Independent Online News) Publishers, the Lenfest Institute and the Solutions Journalism Network.

Perhaps the problem of chain ownership could be addressed, as Waldman proposes, by giving tax breaks to the likes of Gannett and Alden Global Capital if they sell their papers to local nonprofits and public benefit corporations. I would also suggest tax penalties if they decline to do so. Corporate ownership is killing local news just as surely as technological change and the aftermath of the COVID pandemic, and we need to get the publicly traded corporations and hedge funds out.

At a time when political and cultural polarization at the national level is tearing us apart, local news can help encourage the kind of civic engagement we need to rebuild community. But that can’t happen if the newspaper has gone out of business or is on life support, and if nothing else has come along to take its place.

Fundamentally, what’s at issue is that the advertising model that paid for journalism until recent years has collapsed. Publishers need to find a way forward, whether through reader revenue, nonprofit funding, paid events or even starting a bar and wedding venue next to the newsroom, as The Big Bend Sentinel in West Texas did.

The Local Journalism Sustainability Act will help sustain local news while we search for a workable model that doesn’t rely on advertising. After 15 years of declining revenues and dying newspapers, it may be our last chance to get it right.

National media are thriving while locals are dying — yet there’s hope at the grassroots

Photo (cc) 2011 by Wayne Hsieh

Axios has a story on “journalism’s two Americas” — the thriving national media and struggling local news outlets, mainly newspapers. “The disparate fortunes skew what gets covered,” write Sara Fischer and Nicholas Johnston, “elevating big national political stories at the expense of local, community-focused news.”

The data they present isn’t new, but it’s striking nevertheless. Local reporters earn an average annual salary of $49,000, compared to more than $65,000 for national reporters. Of course, many of those national jobs are in the ultra-high-cost New York era, which means the disparity may not be quite as great as those two numbers suggest. Still, the national media are growing and hiring, while local newspapers — most of them owned by corporate chains and hedge funds — continue to eliminate jobs.

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Fischer and Johnston note that CNN is hiring 450 people for its new CNN+ streaming service. And Fischer reported just a little while ago that NBC is “adding hundreds of jobs to its digital organization,” mainly for news-oriented positions.

Not all news on the community journalism front is bad, though. The apocalyptic stories about what’s taking place at the grassroots invariably focus on chains owned by the likes of Gannett and Alden Global Capital. By contrast, entrepreneurs are launching for-profit and nonprofit digital startups at a dizzying rate. Chris Krewson, the executive director of LION (Local Independent Online News) Publishers writes:

Research shows new newsrooms are launching fast, 50 a year for the last five years. They’re for-profit, non-profit, public-benefit corporations, and LLCs; they’re a husband-and-wife team covering a small town; they’re a staff of dozens holding politicians to account at the statewide level….

They’re not replacing the newspaper. They don’t need to. This nascent industry has the potential to grow beyond the limitations of newspapers, to truly reflect and serve communities large and small, rural, urban, Black, Brown, Indigenous, queer… and on and on. We just have to stop thinking about saving the unsaveable and build businesses that serve the needs of communities first. In fact, what these publications are starting to offer is just as good, if not better, than the legacies they’re increasingly supplanting.

I’ve been tracking such projects since the late ’00s. From New Haven to San Diego, from Burlington, Vermont, to Batavia, New York, community journalists step up when there’s a market failure on the part of the local legacy newspaper. Ellen Clegg and I are following similar projects across the country.

There’s no question that these are tough times for local news. But there are plenty of reasons to be optimistic as well.

That state commission to study local news is getting back on track

The special state commission that will study local journalism in Massachusetts may seem to have gone off the rails, but its work was merely postponed because the COVID pandemic. Rather than issuing a report this August, current plans are to work on it for the next year and then issue a report in August 2022, according to Sophia Gardner of the Greenfield Reporter.

I was among those who advocated for the creation of the commission, and, as the legislation is written, I would be a member. I look forward to getting on with our work.

Previous coverage.

Tiny News Collective to provide funding to six local news start-ups

Six local news projects will launch or expand after winning a competition held by the Tiny News Collective — a joint venture of LION (Local Independent Online News) Publishers and News Catalyst, based at Temple University. News Catalyst receives funding from the Knight Foundation and the Lenfest Institute. According to the announcement:

Thanks to a partnership with the Google News Initiative, each organization in the first cohort will receive a $15,000 stipend to help create the capacity for the founders to get started. In addition, the GNI has funded their first year of membership dues in the Collective and LION Publishers.

The projects range from an organization covering education news in part of Orange County, California, to an outlet with the wonderful name Black by God, which seeks “to share perspectives that cultivate, curate, and elevate Black voices from West Virginia.”

Forty organizations applied. Among the judges were Kate Maxwell, co-founder and publisher of The Mendocino Voice, a news co-op that is one of the local news projects I’m following for a book I’m co-authoring with Ellen Clegg.

The Tiny News Collective strikes me as a more interesting approach to dealing with the local news crisis than initiatives unveiled recently by Substack and Facebook. Those require you to set up shop on their platforms. By contrast, the Tiny News Collective is aimed at helping community journalism entrepreneurs to achieve sustainability on their own rather than become cogs in someone else’s machine.

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The Sun is setting in Lowell

More downsizing at The Sun of Lowell, part of Alden Global Capital’s MediaNews Group chain. Kris arrived at The Sun 42 years ago as a Northeastern co-op student. People like him are the heart and backbone of local journalism.

Gannett closes two weekly newspapers in Boston’s exurbs

1878 map via the Norman B. Leventhal Map Center

Two weekly papers in Boston’s exurbs are being shut down by Gannett, their corporate owner. The Hudson Sun and the Marlborough Enterprise have ceased publication, according to the Community Advocate.

The towns will continue to be covered by the MetroWest Daily News, which is also a Gannett publication. The Advocate appears to be a decent source of news for the two communities; its offerings include a Marlborough/Hudson newsletter.

Advocate managing editor Dakota Antelman includes an interesting historical overview of newspapers in Marlborough and Hudson, and notes that reporters for the two communities were moved to the MetroWest Daily News offices in Framingham back in 1995, long before GateHouse Media/Gannett came on the scene.

Trump’s postmaster general targets journalism with a devastating rate hike

Painting by J.C. Leyendecker (1874-1951). Uploaded (cc) 2020 by Halloween HJB.

As scholars from Paul Starr to Victor Pickard have observed, newspapers in the United States have benefited mightily from postal subsidies since the earliest days of the republic.

Starting in the Reagan era, though, the U.S. Postal Service has been run under the misguided notion that it should break even or turn a profit rather than be operated as a public service. As a result, postal rates for periodicals have been rising for more than a generation, putting additional pressure on newspaper and magazine publishers who are already straining under the economic challenges posed by technology, cultural shifts — and, now, the post-pandemic recovery.

The latest bad news comes in the form of a report from The Associated Press that rates on periodicals are scheduled to rise by more than 8% on Aug. 29. The AP story, by David Bauder and Anthony Izaguirre, says the increase is “part of a broad plan pushed by Postmaster General Louis DeJoy to overhaul mail operations.”

DeJoy, you may recall, is the ethically challenged Trump appointee who slowed down mail service last year, thus imperiling vote-by-mail efforts in the midst of the pandemic. For some reason, he appears to have more job security than Vladimir Putin.

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Now, you might think that rising postal rates would simply push publishers to hasten their transition to digital. But it’s a simple matter of reality that print advertising continues to play an important role in keeping newspapers and magazines afloat. For instance, earlier this year, Ed Miller, the co-founder and editor of start-up Provincetown Independent, explained that he offers a print edition alongside a robust website because otherwise it would be just too difficult to make money.

Northwestern University Professor Penelope Muse Abernathy tells the AP that the effect of higher postal rates could be devastating for small local news projects that are already struggling. “It is one of several nicks and slashes that can damage the bottom line, especially if you are an independent publisher who is operating at break even or in the low single digits of profitability,” she says. “And most are.”

Ironically, a section of the Postal Service’s website sings the glories of how subsidies helped foster robust journalism, quoting George Washington and Thomas Jefferson. The essay starts like this:

From the beginning of the American republic, the Founding Fathers recognized that the widespread dissemination of information was central to national unity. They realized that to succeed, a democratic government required an informed electorate, which in turn depended upon a healthy exchange of news, ideas, and opinions.

At a time when the idea of government funding for journalism is being debated in the public square, postal subsidies stand out as a particularly benign way to go about doing that. As with tax benefits for nonprofit news organizations, postal subsidies are indirect. That makes it difficult for the government to punish individual media outlets for tough coverage — as is happening right now in Western Pennsylvania, where the Republican-dominated state legislature has eliminated funding for public broadcasters even as one station has persisted in calling out the Republicans for touting the “big lie” about the 2020 election. (Republican officials deny there’s a connection.)

It’s long past time for Louis DeJoy to hit the bricks and for the post office to be reorganized as a public service. Foremost among those services should be helping to provide the public with reliable, affordable journalism.

The Big Bend Sentinel’s formula: Burgers, brews and, now, a national ad network

Lost Horse Saloon, Marfa, Texas. Photo (cc) 2014 by Thomas Hawk.

It seems like a story from a world we left behind. In late February 2020, I wrote a column about The Big Bend Sentinel, a tiny newspaper in West Texas that was supporting its journalism — and boosting the community’s connection with the paper — by operating a café next to the newsroom.

“Can drinks, community events and the occasional wedding subsidize small-town journalism?,” asked The New York Times.

Well, we all know what happened next. So I was pleasantly surprised last month when Max Kabat, the co-owner of the Sentinel, popped up on the podcast “E&P Reports” and announced that the Sentinel is alive and well.

To my frustration the host, Editor & Publisher owner Mike Blinder, didn’t really press Kabat on how the Sentinel’s café made it through the pandemic. But obviously it did. The Sentinel is based in Marfa, Texas, about halfway between Albuquerque to the west and San Antonio to the east. Kabat and his wife, Maisie Crow, are not your typical rural newspaper publishers — they’re refugees from Brooklyn, where Kabat worked in advertising and Crow was a photojournalist and documentarian. They still pursue those careers, even as Kabat serves as publisher of the Sentinel and a smaller sister paper, the Presidio International, and Crow acts as editor-in-chief.

As for whether the café is helping to support the Sentinel’s journalism, Kabat said the answer is yes:

We’re now actually making money. It was starting to make money. We have never not paid any of our expenses, our loans, the things that we’ve done to try to make this thing work. We’ve always been able to do that, which is great. And for the first time, we actually have money in the bank where we’re continuing to invest. We’ve never taken money out. We just continue to invest into the business because we believe in the idea. And that’s what we’re doing. The Sentinel [that is, the café] makes more money than the newspaper.

At the moment, Kabat says he’s pursuing another revenue-making idea that could support not just his newspapers but other community-based journalism projects as well — a national advertising network based on values rather than clicks. National ads have become nearly worthless for local news websites because Google has driven their value through the floor. Kabat’s idea, called Broadsheet, would enable like-minded publishers to connect with advertisers that would rather be seen on quality local websites. Kabat described his message to advertisers like this:

Put your money where your mouth is. If you make an ad that’s about building community and then you go buy every national television, blah, blah, blah, and you spray it programmatically, you know what that does? That takes 20% of the money that you spent on making that ad. And you take 80% of the money that you spent on this advertising campaign and you give it back to the things that are making us worse.

Among Broadsheet’s early possible clients are papers in Aspen, Telluride, Jackson Hole, the Hamptons and — closer to home — the Vineyard Gazette. That’s a lot of tourist dollars. Marfa itself is a tourist destination as well as the setting for the iconic James Dean movie “Giant.” But perhaps over time Kabat will be able to build his model out and use it to serve news projects in less affluent, more diverse areas as well.

I’m firmly of the belief that, for local news projects to succeed, they need not only to serve their community but to help re-establish the very idea of community. The Big Bend Sentinel is doing that in the most direct way imaginable.

In Georgia, a partisan news site replaces local journalism with false election claims

Here’s what happens when you don’t have a reliable source of local news in your community: partisan websites that look like local news pop up in order to push a political point of view. Most of them are right-wing, although there are also a few that lean left.

Last week NPR’s Stephen Fowler had a terrific piece about The Georgia Star News, a Trump-oriented project that is aligned with Steve Bannon, although it doesn’t sound like Bannon has an official role. “It’s very populist, it’s very nationalist, it’s very MAGA, it’s very American First,” Bannon reportedly said.

The lead story right now: “Merrick Garland’s Case Against Georgia Is a Loser, According to Legal Scholars and Journalists,” aggregated from The Federalist and opinion pieces in The Wall Street Journal and USA Today.

What the Star News and sites like it do is work the media food chain. The website’s publisher, John Fredericks, has a radio talk show whose guests have included Bannon and former Trump campaign manager Corey Lewandowski. Fredericks’ talk show and website haved pushed false information about absentee ballots. (According to Fredericks’ website, his show was recently booted off YouTube. Gee, I wonder why?)

Secretary of State Brad Raffensperger, who stood up for the integrity of Georgia’s elections when it really mattered, nevertheless called for an investigation based on the Star News’ story. From there the story was injected into the mainstream, since legitimate media outlets are in the habit of quoting Raffensperger. And, before you know it, Trump himself was praising the Star News for “the incredible reporting you have done.”

Fredericks claims his operation is profitable thanks to an injection of ads from Republican politicians.

As these “pink slime” operations go, Fredericks’ is rather modest — eight sites, compared to the 1,300 documented last fall by The New York Times. And Fredericks’ sites are statewide — they’re not promising the sort of hyperlocal news that, say, a right-wing site like the Macon (Georgia) Times does.

Still, the Star News points to the dangers of what can happen when we lose reliable local and regional news.

How one news outlet uses volunteer opinion writers to build civic engagement

Graue Mill, Hinsdale, Illinois. Photo (cc) by Lyle.

Now here’s an interesting idea for engaging the community in local news. The Hinsdalean, a free weekly paper in Chicago’s suburbs, has a stable of 10 local opinion writers who take on such weighty topics as Christmas memories, moving back to town after living abroad, and thoughts about the meaning of regret. And here’s the best part: they’re term-limited.

I learned about this recently in a conversation with Julie McCay Turner, managing editor of The Bedford Citizen, a nonprofit website northwest of Boston. Julie is from Hinsdale, and she keeps up with her hometown through the paper’s lively website. She discovered this unique exercise in civic involvement through a column by the paper’s editor, Pamela Lannom, who was soliciting new writers to replace the five who were cycling out. One slot will be reserved for a high school senior. No politicians, please. And writers are not allowed to use these unpaid positions to tout their businesses or nonprofit organizations.

“Over the years I’ve come to think of many of these writers as my friends,” Lannom wrote. “I might not see most of them more than once a year, but the stories they share create a connection. Reading their columns each week is one of my favorite parts of my job.”

Local opinion can help drive interest in community news and help to overcome the polarization that characterizes national culture these days.

Several months ago I wrote a piece for GBH News about a study conducted by three scholars on what happened after The Desert Sun of Palm Springs, California, dropped from its opinion pages all syndicated columns and references to national politics for one month.

The researchers compared The Desert Sun’s readers to those of a control paper and found that polarization was less than what might otherwise have been expected. The numbers were small and didn’t really prove anything one way or the other. But, as the three observed, the effect was salutary regardless of the actual numbers since the experiment pushed the paper to pay more attention to what was taking place in its own backyard.

“Local newspapers are uniquely positioned to unite communities around shared local identities, cultivated and emphasized through a distinctive home style, and provide a civil and regulated forum for debating solutions to local problems,” they wrote. “In Palm Springs, those local issues were architectural restoration, traffic patterns and environmental conservation. The issues will differ across communities, but a localized opinion page is more beneficial for newspapers and citizens than letters and op-eds speckled with national political vitriol.”

The Hinsdalean itself is a great story, and characteristic of what happens when the legacy news outlet falls victim to market failure. Hinsdale once had a paper called The Doings, which ended up getting absorbed by the Chicago Tribune. The Tribune was subjected to years of downsizing and bad ownership under Tribune Publishing — a situation that only grew worse recently when Tribune was sold to the hedge fund Alden Global Capital.

The Hinsdalean, meanwhile, was founded nearly five years ago and has established itself as an award-winning news source. Here’s how its About page begins:

The first issue of The Hinsdalean was published Sept. 28, 2006. This weekly newspaper is dedicated to covering Hinsdale, focusing on the people who live and work here. The founders built the newspaper around the philosophy of community journalism the way it was meant to be. That philosophy recalls simpler times when one newspaper covered one town. The Hinsdalean, which is delivered free each Thursday morning, is the only newspaper that delivers every issue to every home in Hinsdale.

Independent local news is succeeding in hundreds of communities across the country. We need more.

This post was adapted from the Media Nation Member Newsletter that went out last Thursday, July 1. If you would like to receive early exclusive Media Nation content sent to your inbox, please become a member of Media Nation for just $5 a month.