The Haverhill Gazette in the early 1900s. Photo via WHAV.
By Dan Kennedy
The Haverhill Gazette marked its 200th anniversary in 2021, and WHAV Radio has taken note of the occasion in a lengthy tribute. The Gazette, an independently owned daily for most of its existence, launched WHAV in 1947 under the auspices of a publisher who was distantly related to the Taylor family, which then owned The Boston Globe. The station was revived about 15 years ago and converted to a nonprofit, low-power FM station (it also streams) by local advertising executive Tim Coco, who continues to run it as an independent source of news.
Coco and David Goudsward trace the Gazette from its founding in 1821 to the present day. I had no idea that Haverhill’s favorite son, the poet John Greenleaf Whittier, was the editor for a brief period in the 1830s.
A long series of events that led to the shrinkage of the Gazette began in 1957, when William Loeb, the notorious right-wing publisher of the Manchester Union Leader (now the New Hampshire Union Leader), took advantage of a strike at the Gazette by starting a competing paper, the Haverhill Journal. Coco and Goudsward write that the Gazette was sold to a consortium comprising The Eagle-Tribune, then of Lawrence, now of North Andover; The Sun of Lowell; and Vermont’s Burlington Free Press.
John Greenleaf Whittier. Image via the National Portrait Gallery.
Although the arrangement somehow managed to pass antitrust muster, I’m old enough to recall stories that The Eagle-Tribune and The Sun weren’t going to let the Gazette get too good. The Gazette changed hands several more times and in 1998 was sold to The Eagle-Tribune. Today, the Gazette is a weekly. Both the Gazette and The Eagle-Tribune, which remains a daily, are owned by CNHI, a corporate newspaper chain based in Montgomery, Alabama. As Coco and Goudsward write of the Gazette:
It is better off than the thousands of newspapers that have succumbed in recent years, but still a shadow of its former self — the victim, first of consolidation that reduced it from a robust daily to a weekly, and then of the loss of its advertising base to electronic media.
For several years, I followed news coverage in Haverhill quite closely, as it was the first community chosen by the Banyan Project in which to launch a cooperatively owned news organization, to be known as Haverhill Matters. The idea never came to fruition despite years of planning. During those same years, Coco was building WHAV into a vital source of local news and information, both over the air and online.
Chewing over the Election Night results at WNHH are, from left, Babz Rawls Ivy, Markeshia Ricks and Michelle Turner. Photos by Maaisha Osman.
By Maaisha Osman
NEW HAVEN, Conn. — The New Haven Independent, a nonprofit digital news organization, has been delivering local news to residents here since 2005. Several months before this year’s mayoral elections, the Independent hosted debates with candidates running for mayor, conducted candidate interviews on its community radio station, WNHH, and followed candidates door-to-door.
On Election Night, Nov. 2, the newsroom was packed with reporters, interns, volunteers, freelancers and radio hosts — an enthusiastic group dedicated to covering elections for mayor, city council and other positions locally and across Connecticut. The crew dug into takeout pizza amid artworks at La Voz Hispana de Connecticut, the Spanish-language newspaper where the Independent and WNHH are based.
Reporters and volunteers were sent out to 42 polling stations in New Haven and neighboring Hamden to call in results. Arrangements were made with the city to keep up with absentee ballots in order to report on the margin of victory between New Haven’s two mayoral candidates, incumbent Justin Elicker (who won re-election) and John Carlson. A live spreadsheet was posted on the Independent’s website to keep track of the votes. Later, reporters went out into the field to livestream candidates’ speeches and interview them.
New Haven Independent founder and editor Paul Bass checks incoming election results.
While the Independent was gathering results, WNHH was relaying them to its audience and talking about them in a manner that was both raucous and entertaining. Anchored by the station’s morning host, Babz Rawls Ivy, the discussion featured former Independent reporter Markeshia Ricks, local journalist Michelle Turner and station manager Harry Droz — as well as a considerable amount of red wine. Joining them remotely was Christine Stuart, editor of the politics-and-policy website CT News Junkie, who provided some statewide context.
Ricks, a former reporter for the Independent, was one of Rawls Ivy’s panelists. She recalled the Independent as a go-to-place for people and campaigns where they could get the results immediately. She thinks that audience-engagement tools like Facebook Live have also played an integral part in their newsroom.
“You could watch it on local news,” she said, “but they couldn’t transmit it as quickly.”
In contrast to the widespread pessimism over the decline of local news, Paul Bass, the founder and editor of the Independent and WNHH, is optimistic.
“I think it’s the golden age of journalism,” he said. He loves the blend of textual form, photography and videography all merging to create a story. “You can bring the traditional view of journalism with these new tools to looking at stories in new ways [that are] so much deeper where you connect so much more to readers,” he said.
Bass cited a Black Lives Matter protest in May 2020, where he was on-site to cover what he thought would be a tiny gathering that no one knew about. The next thing he knew, there were thousands marching onto the highway and facing off with State Police while he streamed the event on Facebook Live. He said that 50,000 people watched and many people joined the march.
According to a Pew Research Center study, 48% of U.S. adults consume news on social media channels, with Facebook outpacing all other social media sites. The use of Facebook Live results in greater timeliness and a higher level of audience engagement.
Still, those who get their news primarily online are among the least trusting of news and less knowledgeable about current affairs. Americans are concerned about misinformation online being an even bigger problem than perceived media bias. But local broadcast news remains among the most trusted sources of information, with fewer news consumers citing local news as a source of falsehoods than any other type of media. With their relentless focus on local, the Independent and WNHH are helping to counteract distrust.
Bass thinks that mis- and disinformation in his newsroom are handled in a more skillful way because the communication is upfront. “Local [newsrooms] are better because you are showing up at the meeting in person,” he said. “At least here, when I am interviewing someone I have covered for 30 years, I can remember they lied about this last time, or I was wrong five times when asking the question.”
Taking reports from the field are, from left, Yale students Isaac Yu and Laura Glesby and New Haven Independent managing editor Thomas Breen.
The need for local journalism has not changed over time, but the economic dynamics capable of sustaining a profitable model for local journalism have. Bass chose the nonprofit model for the Independent, he said, because he didn’t think there was enough money in for-profit, explaining, “I saw the model being destroyed.”
Strong engagement can help sustain and support strong, independent media for every community in the U.S.
A Nieman Lab report notes that as more community journalists launch nonprofits, they’re doing so with small staff and “a scrappy startup mentality” focused on direct engagement with audience and members. The bigger picture shows that nonprofit news outlets generated an estimated $500 million in revenue in 2019. Foundation grants make up the largest share of revenue.
Bass also lauded the nonprofit model because it’s funded by people who believe in journalism for the sake of democracy. “It actually fundamentally changes the way you do journalism,” he said.
Unlike flashier news websites, the Independent resembles a blog. There is a steady cascade of articles in reverse chronological order and a sidebar for smaller stories. Articles are edited quickly, so typos slip through, which they also make fun of in the newsroom. Readers who spot typos are rewarded with a mug adorned with the Independent’s logo.
Perhaps most important, the Independent has helped build community and inspired young journalists. Laura Glesby, who is just finishing her studies at Yale University, didn’t realize that she wanted to become a reporter until she started working as an intern at the Independent. She was one of the freelancers helping out on Election Night, and will begin working as a staff reporter at the Independent next month.
“I learned a lot from working here,” said Glesby. “And I love that the Independent does on-the-ground reporting where you get to meet people who aren’t just experts or politicians but just people who live here and hear their perspectives.”
Bass came to New Haven more than 40 years ago and has spent his career covering his adopted city, mostly at the Independent and, before that, the New Haven Advocate, a now-defunct alternative weekly. Now 61, he continues to believe in the importance of community journalism.
“I think the bedrock of democracy is local news,” said Bass. “That’s where the larger issue stemmed from, and I think that local reporting is the bedrock of a free press.”
Maaisha Osman is a graduate student at Northeastern University’s School of Journalism. Additional reporting by Northeastern journalism graduate student Zhaozhou Dai.
Our latest “What Works” podcast features Damon Kiesow, a professor at the University of Missouri School of Journalism, where he holds the Knight Chair in Digital Editing and Producing. But Dan and Ellen first met him about 10 years ago when he was at The Boston Globe, developing mobile products for Boston.com and BostonGlobe.com.
At the time, the new Globe.com site had been launched with a paywall, and featured the Globe’s journalism. Although print revenue is still significant, the paywall strategy seems to be paying off now in terms of digital subscriptions. Kiesow and others were working on emerging technologies in mobile and social media. Kiesow focused on human-centered design: how readers interact with a print newspaper versus a digital side. Does some 150 years of experience reading print make a difference? Why is doom scrolling on digital platforms so exhausting? Tune in and find out.
Plus Ellen takes a quick look at a powerful newspaper collaboration in South Carolina that is rooting out scandal after scandal, and Dan offers an update on the vibrant digital archive of the late, great Boston Phoenix, housed at Northeastern University and now freely available online.
The Charleston Post and Courier, a family-owned newspaper in South Carolina that traces its lineage back to 1803, is wrapping up a remarkable year-long project that afflicts the comfortable and the corrupt on an industrial scale.
The project, called, “Uncovered,” harnesses the investigative power of The Post and Courier (the paper won the Pulitzer Prize for Public Service in 2015) and puts it to work alongside 17 community newspapers, at least a few of which are struggling. The editors of The Post and Courier are direct about their dual targets, which they sum up in this headline: “News deserts and weak ethics laws allow corruption to run rampant in South Carolina.”
Their premise: Corruption festers when people aren’t looking, when the spotlight doesn’t shine.
As the story on the home page notes, “The stakes are high. Corruption could surge as so-called news deserts expand and federal and state prosecutors back off.” The editors issue a call to action: Let’s shine a light into the darkest corners.
Together, the coalition of newsrooms filed more than 50 FOIA requests and interviewed more than 560 public officials and whistleblowers. An online “corruption tracker” database enables readers who want to see what scandals the team dug up in a particular community.
Of course, competition for scoops is tightly woven into the culture of most newsrooms. Over the years, that drive to get the facts out has benefited readers. But newspaper closures continue to spread, and ghost newspapers haunt more and more communities, particularly in rural areas. In South Carolina, seven papers shut down last year and two more moved to online only, according to the South Carolina Press Association. So it can be a boon when newsrooms put aside the competitive spirit for a bit to map out an investigative project that proffers solutions across a broader circulation area and provides an incentive to keep subscribing to the town paper. As I’ve reported previously, ProPublica and MLK50: Justice Through Journalism teamed up to investigate predatory debt collection practices in Memphis in an award-winning series entitled “Profiting from the Poor: Inside Memphis’s debt machine.”
As South Carolinians are finding, this network effect amplifies the power of the press to hold public officials accountable. As the Post and Courier editors write: “We have only begun.”
Our guest on the latest episode of the “What Works” podcast is Rhema Bland, the first permanent director of the Ida B. Wells Society for Investigative Reporting at the University of North Carolina school of journalism. She was appointed in October 2020 after working in higher education as an adviser to student media programs. She is a veteran journalist who has reported and produced for CBS, the Florida Times-Union, WJCT and the New York Daily News.
The Wells Society was co-founded by award-winning journalists Nikole Hannah-Jones, Ron Nixon and Topher Sanders. The society is named after the path-breaking Black journalist and activist Ida B. Wells, who fearlessly covered the lynching of Black men and was present at the creation of the NAACP. The society’s mission is essential to the industry: to “increase the ranks, retention and profile of reporters and editors of color in the field of investigative reporting.” Bland and her colleagues host training seminars for journalists across the country, focusing on everything from entrepreneurship to racial inequality to COVID-19.
Also in this episode, Ellen talks about Ogden Newspapers’ purchase of Swift Communications, which publishes community papers in western ski towns as well as niche agricultural titles like the Goat Journal. And Dan shares news about federal antitrust lawsuits that are in the works against Google and Facebook by more than 200 newspapers.
You can listen here and sign up via Apple Podcasts, Spotify or wherever fine podcasts are found.
Marissa Ames, editor of the Goat Journal (Photo courtesy Marissa Ames)
By Ellen Clegg
Not all newspaper acquisitions involve hedge funds that gobble up trusted titles with deep community roots. Sometimes quieter transactions take place outside major urban centers that augur well for the preservation of local journalism, or at least strike a faint chime of hope. One such deal: Ogden Newspapers, a family-owned company founded in 1890, is purchasing Swift Communications, which publishes community papers in western mountain resort towns as well as niche agricultural titles like the Goat Journal.
Robert Nutting, the CEO of Ogden (and the billionaire owner of the Pittsburgh Pirates), and Bill Waters, CEO and chairman of the board of Swift Communications, had nothing but positive things to say about the move, according to a report in Editor & Publisher – although the announcement came as a surprise to some staff members. Here’s Nutting: “We are particularly excited to be working with a team that has been recognized as an innovator in community journalism.” And here’s Waters: “We know the time has come to pass the baton of stewardship to new owners who can carry forward the important mission.” The sale is scheduled to close December 31. No purchase price was disclosed.
Just take a minute and mark those words: stewardship, mission, community journalism. They’re hopeful signals that Ogden does not intend to emulate vulture capital owners who have carpet-bombed local newsrooms across the nation. As my colleague Dan Kennedy writes, about half of us are likely reading a shadow paper that is owned by, or is in debt to, Alden Global Capital, Apollo Global Management or Chatham Asset Management. Even now, like Muncher in “Ghostbusters: Afterlife,” Alden is hungrily eyeing Lee Enterprises, which owns 77 daily papers.
The 20 publications that Ogden has just acquired convey the spice and tang of the communities they cover and are most likely the sorts of publications, bursting with news about local politics and personalities, that James Madison had in mind when crafting the First Amendment of the Constitution. Some 11 of them are in Colorado’s high country, according to Colorado Public Radio, with titles like the Steamboat Pilot & Today and The Aspen Times. Others are dedicated to raising goats and maintaining the family farm, endeavors which touch on crucial issues like climate change and the nation’s groaning supply chain. A recent headline in The Fence Post: “Biden administration extends trucking waiver.”
The Steamboat Pilot & Today, for example, is a daily print newspaper distributed throughout Routt County, Colorado, which has a population of 25,000. “Its police blotter section is the source of a very popular and somewhat hilarious little book called Ski Town Shenanigans, which recounts bear, moose and partying episodes common to the area. It is a lovely little local rag, which we all rely upon to know what is happening in our part of the Rockies,” says Janice Symchych, an attorney and a 10-year resident of the surrounding ranch country who says she aligns with those “who share a collective sense of the importance of grassroots news and communication.”
Marissa Ames, editor of the Goat Journal in Greeley, Colorado, says she’s optimistic: “Any time in journalism when we have stability and a promise of something bigger it’s really exciting.” The Journal, now in its 100th year, is published every other month and is broadening its coverage to include stories about goats raised for angora fiber, goats used as pack animals and goats raised for milk and meat. Ames says she hopes Ogden can help increase the Journal’s digital presence. The print edition has a circulation of about 3,000, she says, but the Facebook page has more than 12,000 followers. “This is very much community journalism,” she tells me in an interview. “No matter where you live, who you love, or how you look, if you’re kind to your goats, we represent you. That ties us together as a community.”
Assuming the sale goes through, as of January 1, Ogden Newspapers will publish 54 daily newspapers. Nutting promised to keep the focus on local content, and vowed those operations will remain largely unchanged, according to Colorado Public Radio.
Some 200 newspapers are engaged in legal actions claiming that Google and Facebook exercise Godzilla-like dominance of digital advertising. Photo (cc) 2009 by Dr Zito.
By Dan Kennedy
A lawsuit filed by newspapers against Google and Facebook that claims the two tech giants violated antitrust laws is gaining momentum. Sara Fischer and Kristal Dixon of Axios report that more than 200 papers across the country have joined the effort, which is aimed at forcing Google and Facebook to compensate them for what they say are monopolistic practices that denied them advertising revenue.
I don’t see any New England newspapers on this list. But the papers that are involved in the lawsuits in some way represent about 30 different owners in dozens of states, according to Fischer and Dixon. About 150 papers owned by 17 different groups have actually filed suit so far.
What’s interesting about this is that it has nothing to do with the usual complaint about Google and Facebook — that they repurpose journalism from newspapers, and that the newspapers ought to be compensated. By contrast, the current lawsuits are aimed at practices that the plaintiffs claim are clearly illegal.
The Axios story doesn’t get into the weeds. But I did earlier this year shortly after the first lawsuit was filed by HD Media, a small chain based in West Virginia. Essentially, the argument is twofold:
Google is violating antitrust law by controlling every aspect of digital advertising. Paul Farrell, a lawyer for HD Media, put it this way in an interview with the trade magazine Editor & Publisher: “They have completely monetized and commercialized their search engine, and what they’ve also done is create an advertising marketplace in which they represent and profit from the buyers and the sellers, while also owning the exchange.”
Facebook is complicit because, according to a lawsuit filed by several state attorneys general, Google and Facebook are colluding through an agreement that Google has code-named Jedi Blue. The AGs contend that Google provides Facebook with special considerations so that Facebook won’t set up a competing ad network.
The two companies have denied any wrongdoing. But if the case against them is correct, then Google is profiting from a perfect closed environment: It holds a near-monopoly on search and the programmatic advertising system through which most ads show up on news websites. And it has an agreement with Facebook aimed at staving off competition.
“The intellectual framework for this developed over the last three to four years,” Doug Reynolds, managing partner of HD Media, told Axios.
The lawsuit also comes at a time when the federal government is beginning to rethink antitrust law. A generation ago, a philosophy developed by Robert Bork — yes, that Robert Bork, and yes, everything really does go back to Richard Nixon — held that there can be no antitrust violations unless consumers are harmed in the form of higher prices.
President Joe Biden’s administration, by contrast, has been embracing a more progressive, older form of antitrust law holding that monopolies can be punished or even broken up if they “undermine economic fairness and American democracy,” as The New Yorker put it.
The newspapers’ lawsuit against Google and Facebook is grounded in the Biden version of antitrust — Google and Facebook are charged with leveraging their monopoly to harm newspapers economically while at the same time hurting democracy, which depends on reliable journalism.
It’s rather late in the game to ask whether hedge funds can be stopped from buying up every last one of our local newspapers. After all, about half of us are already stuck with a paper that is owned by, or is in debt to, the likes of Alden Global Capital (Tribune Publishing and MediaNews Group), Apollo Global Management (Gannett) and Chatham Asset Management (McClatchy).
Still, with Alden having now set its sights on Lee Enterprises, a chain that owns 77 daily newspapers in 26 states, we need to take steps aimed at preventing what is already a debacle from devolving into a catastrophe.
Our faculty at Northeastern University’s School of Journalism recently voted unanimously to support two pieces of legislation aimed at addressing the local news crisis — a bill to make it easier for newspapers to become nonprofit organizations and a resolution that asks Congress to help reverse the decline of community journalism.
The bills were introduced in the House today by U.S. Rep. Mark DeSaulnier, D-Calif., and co-sponsored by Reps. Ed Perlmutter, D-Colo., Jamie Raskin, D-Md., and David Cicilline, D-R.I.
“As local newspapers are being bought up and taken over by large corporations, it is incumbent on Congress to act to protect this public good,” said DeSaulnier in a press release. “My legislation would do just that and ensure newspapers in every community can continue to provide high-quality local coverage that millions of American rely on and deserve.”
Professor Jonathan Kaufman, director of Northeastern’s School of Journalism, said, “The hollowing-out and disappearance of local news organizations imperils journalism, communities and our democracy. These measures provide a financial lifeline and tools for the next generation of journalists to pursue new models and innovation that bring more local news to communities.”
The bills are not related to the Local Journalism Sustainability Act, which would provide tax credits to subscribers, advertisers and publishers. The tax credit that would benefit publishers is part of President Biden’s Build Back Better legislation. DeSaulnier’s bills, by contrast, would address the problem that journalism is not among the activities that qualifies for nonprofit status, even though the IRS has approved such status for many news organizations over the years.
The full press release issued by Rep. DeSaulnier’s office follows.
Congressman DeSaulnier Introduces Legislative Package to Support and Preserve Local Journalism
Washington, D.C. – Today, Congressman Mark DeSaulnier (CA-11), along with his colleagues Congressman Ed Perlmutter (CO-07), Congressman Jamie Raskin (MD-08), and Congressman David Cicilline (RI-01) introduced two pieces of legislation aimed at supporting and protecting local journalism, and honoring its role in bolstering our democracy, holding government accountable, and informing the electorate. The Saving Local News Act (H.R. 6068) would make it easier for newspapers to become non-profits, allowing them the flexibility to focus less on maximizing profits and more on producing quality content. The local news resolution (H.Res. 821) recognizes the importance of local media outlets to society and expresses the urgent need for Congress to help stop the decline of local media outlets.
“Local journalism has been the bedrock of American democracy for centuries. I have seen firsthand how journalists for local newspapers have kept our community informed, educated voters, and held power to account,” said Congressman DeSaulnier. “As local newspapers are being bought up and taken over by large corporations, it is incumbent on Congress to act to protect this public good. My legislation would do just that and ensure newspapers in every community can continue to provide high-quality local coverage that millions of American rely on and deserve.”
“Local and accurate sources of news are becoming more and more important for our community and our country. I believe Congress has a role to play to ensure legitimate media outlets are able to better adapt to the changing media landscape and continue to inform Americans in every community,” said Congressman Perlmutter.
“An informed American public is essential to strong democracy,” said Congressman Raskin. “We cannot allow worldwide propaganda and conspiracy theories to replace hard local news based on local reportage. I’m proud to join Rep. DeSaulnier in introducing this important legislation that will give local news the flexibility it needs to thrive in a dangerously toxic media environment.”
“Over the past 15 years, one in five newspapers have closed, and the number of journalists working for newspapers has been slashed in half. We now live in a country in which at least 200 counties have no local newspapers at all,” said Congressman Cicilline. “This crisis in American journalism has led to the crises we are seeing today in our democracy and civic life. We cannot let this trend continue because if it does, we risk permanently compromising the news organizations that are essential to our communities, holding the government and powerful corporations accountable, and sustaining our democracy. I’m proud to support this resolution and the Saving Local News Act and thank Congressman DeSaulnier for his leadership and partnership in this work.”
“We commend Congressman DeSaulnier for introducing this important piece of legislation that recognizes the importance of nonprofit journalism to the American society. At a time when news deserts are a growing concern, we must ensure that we support all newsrooms in their efforts to provide high-quality journalism to their local communities. This journalism bill that would allow non-profit newsrooms to treat advertising revenue as nontaxable income could be helpful to a number of publishers,” said David Chavern, President and CEO, News Media Alliance.
“Community newspapers are exploring many new models for sustainability. Our newsrooms realize that without us, whole communities will lose their center of gravity. A nonprofit model is one that can work in some communities, but just establishing this status isn’t enough to keep the doors open and journalists at work. The need for revenue from a variety of sources, including local advertisers, remains acute. NNA supports the Saving Local News Act and thanks Congressman DeSaulnier for his work on behalf of local communities,” said Brett Wesner, Chair, National Newspaper Association and Publisher, Wesner Publications, Cordell, OK.
“Honest, truthful reporting is essential to informing our democracy at all levels. Without it, we won’t remain a nation of the people, by the people, for the people. Bills that help sustain local reporting that informs people about what their government representatives are up to, will help keep the citizens in charge of our country,” said George Stanley, President of the News Leaders Association.
“News organizations are looking at multiple ways to fund their organizations while continuing to deliver local journalism that is fundamental to a thriving Democracy. If news organizations want to pursue the nonprofit business model; it should be as accessible for established organizations as it is for news startups. Our members are known and trusted in the communities they serve and removing the hurdles to find philanthropic support would allow newsrooms to focus on serving their communities,” said Brandi Rivera, Publisher, Santa Barbara Independent and Board Member, Association of Alternative Newsmedia.
“Community newspapers are woven into the fabric of American society and provide accurate and trusted information that improves the lives of individuals in the communities they serve. It is no secret that newspapers face an increasing number of existential threats from online competitors which have left them with a decreasing number of revenue opportunities. This measure would provide news organizations with the means to better rise to these challenges and continue to play a vital role in their communities by holding the feet of the powerful to the fire and giving voice to the powerless,” said Jim Ewert, General Counsel, California News Publishers Association.
“Free Press Action supports this important legislation and applauds Congressman DeSaulnier for recognizing the importance of building, supporting and sustaining local nonprofit news operations,” said Craig Aaron, President and co-CEO of Free Press Action. “In too many places, corporate media have shrunk newsrooms or abandoned communities entirely. Nonprofit news has emerged as the future of local journalism, and it’s our best hope for keeping reporters on the beat focused on the needs of local communities, serving communities of color, and reaching so many people who have never been well served by the media. This bill will remove obstacles to nonprofit journalism, help launch more of these outlets, encourage more existing outlets to go nonprofit, and create more of the kind of high-quality journalism we need to inform our communities and keep our democracy thriving.”
“The hollowing-out and disappearance of local news organizations imperils journalism, communities and our democracy. These measures provide a financial lifeline and tools for the next generation of journalists to pursue new models and innovation that bring more local news to communities,” said Professor Jonathan Kaufman, Director of the Northeastern University School of Journalism.
“The health of the news industry is so precarious, all efforts to strengthen an industry so instrumental to democracy are well received. Thanks to Rep. DeSaulnier for stepping up,” said Jody Brannon, Ph.D., Director of the Center for Journalism and Liberty at the Open Markets Institute.
“The U.S. tax code needs this important update to make it easier for nonprofit news organizations to grow across our country. We’ve lost tens of thousands of local journalists over the last decade. That’s meant fewer journalists covering local government meetings, local business and even high school sports. Journalists are essential to holding power to account, watching over our democracy and providing a voice to the voiceless. We applaud Rep. DeSaulnier’s support of journalism. Our country was founded under the principle that a free press was the best way to make sure we have a robust democracy by having an informed electorate. We all have to fight now to save local news,” said Jon Schleuss, President of NewsGuild-CWA.
“The newspaper business model is broken. At a time when local journalism has never been more essential, journalists are losing their jobs across the country, leaving important stories untold. Compelling, original journalism does continue to drive significant advertising revenue—just not for newspapers. Big Tech giants, like Google and Facebook, have used their monopoly power to capture huge swaths of the digital advertising market, making it nearly impossible for many papers to chart a path forward in the digital age. This has allowed hedge fund vulture capitalists to scoop up scores of newspapers across the country—all of whom have been reduced to shadows of their former glory by a short-sighted cut, cut, cut approach. We welcome and applaud efforts to help news outlets continue to cover of the communities they serve. This legislation will create a path that communities can use to save their local papers. Local news is a key piece of American democracy, and while addressing the underlying problems Big Tech has created for journalists is complex, we have to do everything we can to allow for news to thrive,” said the Save Journalism Project.
“PEN America applauds the introduction of the Saving Local News Act – and the accompanying resolution on the importance of local news – as a welcome and needed step to support America’s journalism ecosystem. By making it easier for news organizations to become nonprofits, Congressman DeSaulnier’s legislation will open up a sustainable financial pathway for quality local journalism, recognizing its value as a public good. Enacting this bill will strengthen a fundamental pillar of our democracy, encouraging diverse reporting, civic engagement, and access to essential community information,” said Nadine Farid Johnson, Washington director of PEN America.
Since 2017, estimated daily newspaper circulation fell 11 percent from the previous year (Pew Research Center). Congressman DeSaulnier established a working group of dedicated Members of Congress from areas affected by a drought of high-quality journalism. Together they have been working to highlight this crisis and bring attention to the need to promote local journalism, including by holding a Special Order on the floor of the U.S. House of Representatives and introducing the Journalism Competition and Preservation Act (H.R. 1735), a bill to create a temporary safe harbor from anti-trust laws to allow news organizations to join together and negotiate with dominant online platforms to get a fair share of advertising profits.
Congressman DeSaulnier’s bill and resolution are supported by: News Media Alliance, National Newspaper Association, News Leaders Association, Association of Alternative Newsmedia, California News Publishers Association, Free Press Action, Faculty of the School of Journalism at Northeastern University, Local Independent Online News (LION) Publishers, Save Journalism Project, PEN America, Center for Journalism and Liberty at the Open Markets Institute, and NewsGuild-CWA.
Sen. Joe Manchin. Photo (cc) 2017 by Third Way Think Tank.
By Dan Kennedy
The Local Journalism Sustainability Act (LJSA), which I’ve written about rather obsessively, is built upon the foundation of a three-legged stool: a tax write-off for individuals of up to $250 for subscription fees or donations to local news organizations; a tax credit for advertisers in local news outlets; and a payroll tax credit for publishers that hire or retain journalists.
Now the payroll credit has been carved out and added to the Build Back Better bill, which has passed the House and now faces uncertain prospects in the Senate. Marc Tracy reports in The New York Times that the provision would add up to nearly $1.7 billion over the next five years for newspapers, digital operations and broadcast operations.
Tracy notes — rather huffily, if I’m reading him accurately — that large newspapers like the Times would be excluded because they employ more than 1,500 in one location, but giant newspaper chains such as Gannett and those owned by Alden Global Capital would stand to benefit. As I’ve said before, I wish there were a way of restricting the benefits to independent owners; still, this strikes me as worth trying.
What I’m more concerned about is the political wisdom of adding just one part of the LJSA to Build Back Better, which — despite the optimism voiced by President Biden and other Democratic leaders — could be doomed given the seemingly endless demands made by Democratic Sens. Joe Manchin and Kyrsten Sinema.
There is at least some bipartisan support for the LJSA. Moreover, the tax write-off for subscriptions and donations strikes me as more interesting and creative than simply handing money to publishers for not laying people off. If Build Back Better passes, it will be with just 50 Democratic votes and Vice President Harris breaking the tie — and at that point it seems likely that the other two legs of the stool would disappear. If Build Back Better goes down to defeat, proponents of the LJSA will have to start from scratch.
Even so, the benefits that would be provided by the payroll tax credit are not insignificant. Art Cullen, editor of Iowa’s Storm Lake Times, tells The New York Times that the credit would mean $200,000 in just the first year for his struggling newspaper. “We’d be walking in tall cotton,” he’s quoted as saying. (Ellen and I spoke with Cullen recently on our podcast, What Works: The Future of Local News.)
Providing government assistance to journalism is fraught with concerns about the First Amendment and the need for an independent press. Yet journalism has always benefited from government help, starting with postal subsidies in the late 1700s. The LJSA is worth trying. I just hope that Democratic leaders haven’t outsmarted themselves by splitting up a bill that stood a decent chance of passing and grafting it onto a large package that they just can’t seem to get done.