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.

Dan Winslow brings his campaign to Danvers

Winslow in Danvers

U.S. Senate candidate Dan Winslow calls himself “the Dan with a plan.” I am the Dan without a plan. But I do follow Winslow on Twitter. So when I saw that he was heading for Danvers Square, I walked the block and a half from my house to see if we could connect.

Winslow, one of three Republicans running in the primary on Tuesday, was greeting voters and meeting supporters at New Brothers. We’ve conversed so much on Twitter that it was hard to remember that this was actually our first meeting.

Winslow is as ebullient in person as he is on social media, touting his endorsement by the Springfield Republican as representing a “clean sweep” of Massachusetts newspapers. (Most notably, Winslow has been endorsed by both the Boston Globe and the Boston Herald.)

Still, the polls suggest that Winslow — a state representative, former judge and a top adviser to Mitt Romney when he was governor — is running third, behind former U.S. attorney Michael Sullivan and venture capitalist Gabriel Gomez. The winner will square off against one of two Democratic congressmen, Ed Markey or Stephen Lynch, in a special election to be held in June.

Winslow’s hopes would appear to rest on low turnout (likely to be especially low given how little attention the campaign has received following the Boston Marathon bombing) and his get-out-the-vote effort. His profile as a fiscally conservative, socially moderate Republican is one that has traditionally appealed to independent voters in Massachusetts. But he’s not well known, and there are only a few days to go.

Photo (cc) by Dan Kennedy. Some rights reserved.

Michael Sullivan’s tired, uninspired debate performance

Dan Winslow and Gabriel Gomez at least seemed interesting in tonight’s Republican Senate debate, sponsored by WBZ and the Boston Globe. But Michael Sullivan, who’s way ahead in some polls, came across as old and cranky, a garden-variety right-winger who couldn’t even bring himself to support the gun-control compromise announced in Washington today.

It seems to me that either Winslow or Gomez could at least make the Democratic nominee — Steve Lynch or, more likely, Ed Markey — break a sweat. If either of them gets a chance, that is.

And, oh, the Massachusetts Republican Party has come to this: both Sullivan and Gomez attacked Winslow for being part of a governor’s team that raised taxes and passed Romneycare. If Willard Mitt Romney is now too liberal for Republican primary voters, then their candidate is headed off an electoral cliff.

Lynch staggers under weight of chip on his shoulder

I thought Ed Markey and Steve Lynch both acquitted themselves fairly well in the Democratic Senate debate last night sponsored by the Boston Herald and UMass Lowell. (Herald story here; Boston Globe story here.)

What really struck me, though, was their closing statements, in which they both emphasized their working-class roots. Lynch came off as bitter and resentful. Markey told a lovely, uplifting story about the Dominican immigrants who now live in the Lawrence home where his father grew up.

The contrast turned an otherwise-OK performance for Lynch into a lost opportunity. I’m surprised Lynch can walk upright with that massive chip on his shoulder.