Google mirrors Newsom in cutting local news support.

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Google and California: A Shaky Pact on Local News Funding

As local journalism grapples with financial instability, a recent agreement between Google and the state of California raises questions about the future of news funding in the Golden State. With both parties pledging to support local news outlets, changes in their commitments have left many skeptical.

California’s Commitment: A Cut in Funding

To stave off potential regulations, Google initially committed $45 million to support California local news. However, the reality has shifted dramatically, as the tech giant will now contribute only $10 million—a significant reduction from the promised figure. This entails a mere half of what was initially expected for the program’s first year.

According to Assemblymember Buffy Wicks, who has played a pivotal role in orchestrating this initiative, the funding will be distributed among various California news publishers. The plan initially stemmed from Governor Gavin Newsom’s proposal to retract the state’s commitment from $30 million to $10 million as California combats a daunting $12 billion budget deficit.

The California Civic Media Fund: An Overview

The newly established California Civic Media Fund will be administered by the California State Library. This entity will create a board comprised of publisher representatives who will oversee the distribution of funds. Their mission? To sustainably and effectively enhance community news coverage across California.

Library officials will ensure transparency in overseeing these public dollars, while Google’s contributions will be funneled through a separate nonprofit entity, keeping public oversight intact. “Sustaining local journalism will take all of us—government, philanthropy, and the tech sector—stepping up together,” affirmed Wicks.

Local Journalism

Philanthropy and Google: The Path Forward?

This funding, labeled as seed funding, is intended to inspire additional donations from philanthropic entities keen to support local journalism. “Google is ready to contribute more if the state garners private donations,” stated Jaffer Zaidi, a vice president at Google’s parent company, Alphabet.

The original partnership outlined an ambitious plan where both Google and the state of California would contribute $10 million each annually for four years, summing up to an impressive total of $125 million. Unfortunately, the current funding level falls short, with Google’s announced contributions dropping to less than half of what was promised for the first year.

The Implications of Reduced Funding

While supporters envisioned a thriving local news ecosystem, critics have pointed out that this handshake deal is insufficient in addressing the dire circumstances facing journalism. In the last two decades, the news industry has witnessed a substantial decline, with California losing one-third of its newspapers since 2005. This trend contributes to startling civic disengagement and an increase in misinformation—a concerning matter in today’s digital landscape.

Advocates argue that more substantial financial commitments, such as the original proposal to collect $500 million annually from tech companies, would better support local journalists striving to report on community issues. Such initiatives could provide the necessary backbone for a sustainable future in local journalism.

A Call for Collective Action in Journalism

As Google and California reflect on their partnership, they have an opportunity to recalibrate their commitments to better serve the interests of local news outlets. By working collaboratively and harnessing support from diverse sectors—government, tech, and philanthropy—both entities can truly bolster a vital pillar of democracy: a well-informed public.

The future of local journalism is teetering, and now more than ever, it requires collective action and renewed investment. The question remains: will Google and California rise to the occasion, or will local news continue to falter under insufficient support?

For more insights on the evolving landscape of local journalism, visit CalMatters and subscribe for updates.

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