Illinois nears enactment of tax credits and other measures to boost local news

Illinois Gov. J.B. Pritzker. Photo (cc) 2018 by SecretName101.

The state of Illinois has taken a major step forward in trying to ease the local news crisis, with the legislature approving tax credits for publishers to hire and retain journalists; creating a 120-day cooling-off period to slow the sale of independent local news outlets to out-of-state chains; and funding scholarships for students who work at an Illinois news organization for at least two years after graduation.

Mark Caro reports for Northwestern University’s Local News Initiative that the tax credits amount to a modest $25 million over five years, but he quotes state Sen. Steve Stadelman as saying that the measure nevertheless represents a good start. “It was a tight budget year for Illinois, which always makes it difficult to pass legislation,” Stadelman, a Democrat, told Caro. “Was it as much as I wanted? No. But it showed that there’s a commitment by the state of Illinois to local journalism, and that’s significant.”

Gov. J.B. Pritzker is expected to sign the bill.

A couple of points I want to raise.

• The legislation grew out of the state’s Local Journalism Task Force, which was created by Gov. Pritzker in August 2021. Stadelman chaired that bipartisan group. Illinois was the second state to create a commission to study the local news crisis and make some recommendations. The first, you may recall, was Massachusetts; I had a hand in drafting the legislation that created it and would have been a member. But the Massachusetts commission, signed into law by then-Gov. Charlie Baker in January 2021, never got off the ground. There are some favorable rumblings coming out of Beacon Hill, though, and I hope to have better news to report at some point later this year.

• The Illinois tax credits avoid some pitfalls that developed almost immediately after New York State approved $90 million over three years. The New York credits are currently being implemented through an administrative process, and Gothamist reported recently that it’s not clear whether nonprofits and digital-only media outlets would be included, even though some prominent proponents understood that that they would be. The language is also contradictory as to whether out-of-state chains would be able to take advantage of the credits.

By contrast, the language of the Illinois legislation makes it clear that nonprofits and digital-only projects are included and that out-of-state chains are excluded.

The Illinois bill represents just part of a comprehensive package that was unveiled last February. As Caro reports, the Stadelman bill originally called for state agencies to spend half or more of their ad budget on local news outlets, but that provision was dropped.

In addition, a separate bill that would have required Google and Facebook to pay for the news that they repurpose has been put on hold depending on how things go with a similar measure in California. Forcing Big Tech to hand over some of their profits sounds appealing, but it hasn’t been working out very well elsewhere, as Facebook is getting rid of much of its news content and Google is threatening to walk away from the modest assistance it provides to journalism, such as the Google News Initiative.

Any form of government assistance for journalism has to be evaluated for whether it compromises the independence that news outlets need in order to hold public officials to account. Still, the modest action being taken in Illinois seems worth trying, at least on an experimental basis.

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Virginia will allow public notices to be published in digital-only news outlets

Public notices may not be the sexiest part of the local news business, but the revenue they bring in is crucial. Also known as legal ads, these notices — usually placed by local government to announce public hearings, bids and other business — must, in most states, be published in a print newspaper. But this requirement has come under question in recent years as more and more communities find themselves without a viable print paper. Why not let them advertise in a digital news outlet?

Recently Virginia became the first state to allow that option. ARLnow, a digital site that covers the Arlington, Virginia, area, reports that the state legislature recently approved a digital-only option by “overwhelming bipartisan majorities,” and that Gov. Glenn Younkin has signed it into law. The new system will go into effect on July 1.

The proposal, put together by the Virginia Press Association and a group of online publishers, requires that a digital outlet meet certain benchmarks in terms of readership and local staffing. According to a statement by Betsy Edwards, executive director of the press association:

The Virginia Press Association believes that independent, third-party local news sites (print or online) are the best place to publish government public notices. We supported this legislation because it utilizes local newspapers and news websites to provide the public with maximum transparency.

The Virginia law is just the latest sign that the monopoly held by print newspapers over public notices is beginning to break apart. Last year Oregon passed a law allowing public notices in replica editions with paid subscribers, and Indiana is on the verge of adopting a system that would ease, but not overturn, the print requirement.

In Massachusetts, there has been talk of changing the system, but proposals to allow digital-only publication are in the very early stages. It’s not an easy issue. Some independent print newspaper owners argue that public notice revenue is vital to their bottom line, and that it would be unfair to allow digital-only outlets to get that money.

On the other hand, there are some absurd situations out there. Bedford officials, for instance, advertise in The Sun of Lowell, a chain-owned paper with virtually no presence in the town, even though the community is covered by The Bedford Citizen, a digital nonprofit with a significant footprint.

What really matters is that government be required to advertise in independent outlets — unlike Florida, for instance, where one of Gov. Ron DeSantis’ anti-press actions was to push legislation allowing officials to post public notices on their own official websites.

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Tracking independent local news projects in Mass.

After I reported last week that Gannett was dropping most local news from its Massachusetts weekly newspapers in favor of regional coverage, I heard from a few independent hyperlocal publishers, several of them with projects I wasn’t familiar with. So I started compiling a list of independent news organizations, putting out the word for nominations on Twitter and Facebook.

The titles came pouring in. Independent journalism is alive and well in Massachusetts, and though I’m sure many of the projects I found are economically marginal, they’re providing the kind of granular community coverage that you just can’t get from a corporate chain-owned newspaper. There are weekly newspapers on my list as well as digital-only projects, a few dailies and even a couple of radio stations.

I’ve got nearly 200 entries, sortable by the name of the project, the community and the type. Some, like the Berkshire Eagle, serve multiple communities; most cover just one town or neighborhood. I’ve added a link to the menu bar for easy access. Meanwhile, please keep those nominations coming — just send an email to me at dan dot kennedy at northeastern dot edu.

Check out the full list by clicking here.

Don’t sell Scott Brown short

Scott Brown

This commentary also appears at the Huffington Post.

Will Republican Sen. Scott Brown of Massachusetts win re-election this November? Or will he be defeated by his Democratic rival, Elizabeth Warren? The answer, clearly, is “yes.”

I’ve been thinking about writing this post for a while. Frank Phillips’ story in today’s Boston Globe on Democrats who are panicking over the latest polls seems like as good a hook as any, so here we go.

From the moment Warren announced her candidacy, I’ve been struck by the fever-pitch feel that has permeated the race. Not among ordinary voters, of course; they won’t tune in until after Labor Day. But political junkies are fully engaged, as you know if you dip into the Twitter streams at #masen and #mapoli.

It seems to me that we’ve got a race between two very good candidates. I think Warren is the best the Democrats could have hoped for — not just better than the unknowns and wannabes who were running before she got into the race, but better than any member of the state’s Democratic establishment, with the possible exception of Gov. Deval Patrick.

Warren is articulate, she’s an economic populist, she combines insider experience with outsider credentials (how many people have managed to piss off both Republicans and Treasury Secretary Timothy Geithner?) and she’s almost as pretty as Brown.

Elizabeth Warren

Nor has she made any major missteps to this point. Brown supporters have tried to make hay of her endorsement of the Occupy movement, but that’s not going to play. The repeated references to her as “Professor” Warren are kind of pathetic. Anti-intellectualism does not have the sort of appeal in Massachusetts that it does in, say, Texas.

But some Democrats seem surprised, at the very least, that Brown didn’t topple like a rotten tree at the first sign that he’d have a serious opponent. Those sentiments vastly underestimate Brown’s strengths. In fact, I can think of two only first-class political talents to emerge in Massachusetts in the post-Michael Dukakis era: Patrick and Brown. (If Mitt Romney didn’t have a zillion dollars, I’m not sure he could win a seat on the Belmont Board of Selectmen.)

Democrats ignore the reality that no one is really angry at Brown other than liberal activists. He was elected just a little more than two years ago, and the glow from his startling victory over state Attorney General Martha Coakley has not fully faded. Massachusetts voters have traditionally liked having a Republican in a statewide position, and with the governor’s office now in Democratic hands, Brown has that working for him as well. My sense is that a lot of voters are still rather pleased with themselves for their role in Brown’s win, and it’s going to take more than Warren’s just showing up to get them to change their minds.

Nor should anyone discount Brown’s political instincts, which are superb. Brown has been a master of not taking strong stands on divisive issues, leaving himself free to bend when it’s necessary for his survival as a Republican in an overwhelmingly Democratic state. It took a while, but he eventually came around to voting for the repeal of “don’t ask, don’t tell.” He was among the very few Republicans who voted in favor of financial regulation, although he also loses points for his role in weakening those regulations.

The outlier in Brown’s record is his staunch support for the Blunt amendment, which would undo President Obama’s compromise on birth-control coverage at colleges, hospitals and other secular employers owned by religious institutions. Although Brown’s stand doesn’t seem to have hurt him in the polls so far, I think those who argue his rising poll numbers reflect public support for Blunt are wrong. Again, people just aren’t paying attention yet.

Why did Brown do it? Who knows? Maybe he’s acting on principle. Maybe the Senate leadership believes it has let Brown stray from the reservation too often and demanded his fealty on this one. In the long run, Brown’s support for Blunt will probably hurt him at the margins, but it’s not likely to determine the outcome of the race.

So what will determine the outcome? My guess is turnout. If this weren’t a presidential-election year, Brown would probably be a shoo-in for re-election. But with Obama on the ballot, a lot of people in Massachusetts are going to come out on Election Day looking to vote a straight Democratic ticket. The likelihood that Romney will be Obama’s Republican opponent only makes matters worse for Brown. Romney is not popular here except among the state’s tiny band of Republicans.

Predictions are futile. But I would imagine that whoever wins, it’s going to be extremely close. My advice: Don’t sell Brown short. And chill out. It’s only March.

Photo of Scott Brown by Dan Kennedy. Photo of Elizabeth Warren by the U.S. Treasury Department via Wikimedia Commons.