New Jersey and California learn that what the government giveth, the government can taketh away

Illustration by ChatGPT

There are two problems with direct government funding of journalism. The first is that it opens the door to government interference. The second is that, even if safeguards are built in to protect independence, the money can be reduced or cut off in the event of a crisis.

That is exactly what is happening in New Jersey and California. In the former, that state’s Civic Information Consortium, a pioneering effort to distribute taxpayer funds for journalism and other types of storytelling, is in danger of being zeroed out after receiving $3 million this past year. In the latter, a deal that California officials had reached with Google to pay for news is starting to come apart.

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New Jersey’s Democratic governor, Phil Murphy, has proposed getting rid of the funding in his budget for fiscal year 2026. The consortium calls it “a potentially devastating blow to local media and civic information access across the state. Without this funding, NJCIC’s critical work could cease.”

Since it was launched in 2021, the consortium has granted some $9 million to 56 organizations. It’s administered by an independent board appointed by the governor and run out of Montclair State University. Ellen Clegg and I wrote about it in our book, “What Works in Community News.”

Murphy declined to comment on the cut when contacted by Terrence T. McDonald of the New Jersey Monitor, but McDonald noted that the governor’s office had said earlier this year that his budget proposal would include “some belt-tightening.” Even so, McDonald observed that next year’s budget was on track to be larger than the current year’s.

The California situation stems from a much-criticized deal that the state cut with Google last year. According to Jeanne Kuang of CalMatters, Democratic Gov. Gavin Newsom has reduced a $30 million allocation to help pay for local news to just $10 million for the coming year as he wrestles with a $12 billion deficit.

That, in turn, trigged a cut by Google from $15 million to $10 million. The money — now just $20 million instead of $45 million — will be administered by a newly formed California Civic Media Fund, which Kuang writes will comprise “a board of publisher representatives to determine how to distribute it.”

California’s five-year deal with Google was reached after the state abandoned efforts to pass legislation that would have taxed Google for the news that it repurposes. One version of the tax would have brought in $500 million a year.

There are all kinds of problems with what essentially amounts to a link tax, started with the reality that news publishers benefit when Google links to their content. Users who click through encounter those publishers’ advertising, or may even be induced to subscribe if they have a paywall.

Now publishers are facing a much deeper threat from Google, as the search giant is going all-in on artificial intelligence, thus eliminating the need to click through.

“Links were the last redeeming quality of search that gave publishers traffic and revenue,” Danielle Coffey, the CEO and president of News/Media Alliance, said in a statement reported by The Verge. “Now Google just takes content by force and uses it with no return, the definition of theft. The DOJ remedies must address this to prevent continued domination of the internet by one company.”

“DOJ remedies” is a reference to recommendations by the Department of Justice after Google recently lost two separate antitrust cases.

Another fake murder is reported. This one was generated by AI.

Photo (cc) by Nick Youngson via The Blue Diamond Gallery

You wouldn’t think it could happen again — but it did. Mere weeks after a small community news site in New York State reported a murder without bothering to do the due diligence that would have revealed the incident never took place, the same thing has happened in New Jersey. The difference is the role played by artificial intelligence.

At the Mid Hudson News in Newburgh, New York, the fake news was published as a result of human error. Its story was then picked up by the aggregation site NewsBreak, which added a commentary generated by AI lamenting the rise of social media as a factor in such (non-existent) violence.

In New Jersey, a false report of a murder actually originated at NewsBreak, and it appears to have been wholly generated by AI. Eric Conklin of NJ.com reports:

Police in a New Jersey city are urging the public to ignore a story featured on a news website about a fatal shooting they say was written using artificial intelligence.

The story on Newsbreak.com [the link now goes to a 404] said a “local resident” was found dead in the 100 block of West Broad Street in Bridgeton on Christmas Day. It further dives into the gun debate in America as communities seek an end to violence….

Police on Wednesday said the story has been circulating on social media, emphasizing an italicized note at the bottom of the text that the piece “includes content assisted by AI tools”

“Nothing even similar to this story occurred on or around Christmas, or even in recent memory for the area they described,” Bridgeton police wrote on their official Facebook page.

Noor Al-Sibai has a good overview at Futurism and observes:

Ultimately, the slipperiness of this faux article’s sourcing speaks to the heart of AI-generated content. Instead of revolutionizing media — or anything else, for that matter — outlet owners who insist on using generative AI instead of human writers have done little more than sow discord in an institution that’s already infamously mistrusted by the public.

Indeed. It also shows that even as local journalists with ethical scruples struggle to be heard above the noise, operators like NewsBreak will continue to take advantage of the crisis in community journalism to crank out fake news for fun and profit. Keep in mind, too, that most of the AI-generated crap that appears on sites like NewsBreak does not rise to the level of a murder that never actually happened, which makes it all the more difficult to parse fiction from reality. Caveat emptor.

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Hearst CT de-emphasizes print while expanding its newsroom and digital subs

The New Haven Register’s printing plant is long gone. And now its owner, Hearst, will be printing it out of state as the chain doubles down on digital subscriptions. Photo (cc) 2009 by Dan Kennedy.

A newspaper battle is brewing in Connecticut — but print is becoming an afterthought.

Hearst Connecticut recently announced that it would move its printing operations to Albany, New York, meaning that deadlines for titles such as the New Haven Register and the Connecticut Post of Bridgeport will be earlier than ever. Twenty-eight jobs will be eliminated, reports Greg Bordonaro of the Hartford Business Journal.

At the same time, Hearst has been growing in Connecticut. The chain is adding positions to its combined newsroom of about 160 full-timers. According to confidential sources I’ve been in touch with with, digital subscriptions have risen from about 21,000 to 39,000 over the past 16 months.

With Connecticut’s statewide daily, the Hartford Courant, being strangled by the hedge fund Alden Global Capital, the privately owned Hearst is attempting to fill the void. Last summer, Hearst unveiled a new statewide website, CTInsider, that has its own staff and also draws on content from Hearst CT’s eight dailies and 13 weeklies.

It’s an approach that emphasizes statewide and regional coverage over community watchdog reporting, and it’s similar to what Advance is doing in New Jersey, where papers such as The Star-Ledger of Newark, The Times of Trenton and the South Jersey Times have been united under the NJ.com banner. Nevertheless, the emphasis on growth and real journalism at Hearst CT is heartening at a time when hedge-fund cutbacks are dominant.

The golden era of newspapers

Public domain photo by Gary Todd

I love this passage from David Sachsman and Warren Sloat’s “The Press and the Suburbs: The Daily Newspapers of New Jersey” (1985). They’re writing about The Record of Bergen County, but it could have pertained to any number of papers:

It is the happiest of newspaper cycles. The advertisers supply the money, lots of it (49 pages of ads a day). The newspaper spends the money freely to produce a solid product, employing 198 full-time news staffers and 81 part-timers to fill a 24-page news hole. The high-income audience centered in towns like Ho-Ho-Kus, Wyckoff, Franklin Lakes, and Rivervale buys the newspaper and goes shopping, pleasing the advertisers, who buy more ads.

A chain of 14 weeklies in New Jersey will convert to nonprofit ownership

Bernardsville, N.J. Photo (cc) 2012 by Doug Kerr.

I love this. A small chain of 14 weekly papers in north central New Jersey is converting to nonprofit ownership. The New Jersey Hills Media Group will work with the Corporation for New Jersey Local Media in order to make the transition — and will immediately embark on a fundraising drive with a goal of $500,000. Co-publisher and business manager Steve Parker explains the move this way:

Our family has served as stewards of these newspapers for 66 years, and we are pleased that a nonprofit group based in our communities has come forward to ensure that they will continue their mission of community journalism far into the future.

The papers — some of which are more than 100 years old — serve 52 communities in Morris, Somerset, Essex and Hunterdon counties.

According to the announcement, the chain might become the largest nonprofit group of weeklies in the country. Among large daily papers, The Salt Lake Tribune has converted to nonprofit status, while there are a handful of for-profit papers owned by nonprofit organizations — a list that includes The Philadelphia Inquirer, the Tampa Bay Times, the New Hampshire Union Leader and The Day of New London, Connecticut. And, of course, public radio stations are nonprofit news organizations.

You sometimes hear that nonprofit ownership doesn’t solve all the problems faced by shrinking newspapers, since they still have to balance the books. That’s true. But it solves a lot of the problems. Tax-exempt status and ownership by people invested in the community rather than by corporate chains and hedge funds go along way toward ensuring the future of local news.