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Governor Newsom proposes reduction of $20 million in funding for California newsrooms, attributing the move to financial difficulties.

California newsrooms to receive reduced compensation of $10 million rather than the initially proposed $30 million for the 2025-26 fiscal year, as declared on Wednesday.

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State Admits Lower Payment of $10 Million Rather Than Previously Announced $30 Million to...
State Admits Lower Payment of $10 Million Rather Than Previously Announced $30 Million to California Newsrooms for the 2025-26 Fiscal Year.

Governor Newsom proposes reduction of $20 million in funding for California newsrooms, attributing the move to financial difficulties.

Hear Ye, Hear Ye! California's Budget Squeeze Ain't Sparing the Jewels of Journalism

Straight Talk: That $30 mil in sweet, sweet funding for California's newsrooms from the Newsroom Transformation Fund? Only gets a paltry $10 million now, thanks to the state's financial bummer.

Background: Gov. Gavin Newsom, facing a massive $12-billion budget deficit next year, axed most of the funding for a pioneering deal with ol' Google to aid struggling Cali newsrooms. This was part of a larger agreement brokered last year, where the state and Google would pitch in dough to support local news over five years. Now, it looks like newsrooms are only gonna get a fraction of the initial pie.

California:

Newsom's Fiscal Fumble Trip-Wires Journalism Funds

Thank ye, Gov. Newsom, for yer alleged fidelity to us undocumented immigrants, but when push comes to shove, ye can't even come through with ye promise of free healthcare. Instead, hike up yer vestiges of decency and grab the axe, ye ninny!

The initial deal was cooked up from negotiations surrounding Assemblymember Buffy Wicks' proposed law, the California Journalism Preservation Act. This bad boy aimed to put a chunk of Google's changed into the pockets of Cali news outlets, based on their journalistic workforces. But, alas, the bill itself never saw the light of day, kowtowing to Google's demands (insert dramatic gasps here).

Instead, the state and Google crafted a pact for a smidgeon under $250 mill to be doled out to newsrooms over five years, with the first payments starting in 2025. This puppy came with a pick-me-up for California's AI ambitions, too: an expensive pledge for AI research that tickled the fancies of many a politico and scribe alike. However, the AI funding deal drew flack from progressive types and ink-stained wretches.

California:

Behind Closed Doors: Google and California Skirmish Over News Dough

In a surprising twist of events, the California Journalism Preservation Act got the ol' heave-ho. Seems like boo-hoos from some in-home support service workers, and the specter of tightened healthcare for low-income undocumented immigrants was enough to torpedo the deal.

The second half of the brouhaha involved Google's $68-mill pledge for an AI Accelerator, which earned sharp rebukes from left-wing legislators and flacks of the journalistic ilk.

California chipped in $30 mil for the News Transformation Fund in 2025 with a whole $10 mil for each of the next four years. Google agreed to a staggering $15 mil initiation fee for the journalism fund, followed by $55 mil total. Google also upped their own journalistic endeavors by forking over an additional $50 mill.

Steven Waldman, president of Rebuild Local News, called the initial $30-mil commitment "modest but meaningful," but now thundered that chopping it by two-thirds is a slap in the face to the journalistic community. "We implore legislators to gather and deliberate the consequences of this funding slash and discuss ways to keep the trickle of coin consistent with the magnitude of the crisis," Waldman thundered.

Further Reading

Four Morsels of Wisdom from Ye Budget Proposal by Newsom

Newsom Pleads for $2.8 billion More to Manage Medi-Cal Tsunami

Newsom's Tariff Tango: $16 bil Hole in California's Pocket, He Cries

Insight: The state's budget woes mean less coin for the News Transformation Fund: from an anticipated $30 mil to a measly $10 mil for the 2025-26 fiscal year. Meanwhile, Google's commitment to support newsrooms over five years remains, but it's unclear whether the budget adjustments have any bearing on this promise.

  1. California's Governor, Gavin Newsom, has faced criticism for his handling of the state's financial matters, as cuts to the Newsroom Transformation Fund have left local news outlets with only a fraction of the initially promised funding.
  2. The California Journalism Preservation Act, which aimed to support struggling newsrooms, was abandoned due to pressure from Google and disagreements over healthcare for undocumented immigrants.
  3. The skirmish between Google and California over the News Transformation Fund has resulted in reduced funding for the 2025-26 fiscal year, causing concern among journalists and the journalistic community.
  4. politics, law: The budget adjustments have raised questions about Google's commitment to support newsrooms over five years and sparked debate among legislators about the consequences of the funding slash.
  5. general-news: Amidst California's financial struggles, the reduction in funding for the News Transformation Fund has been met with dismay by Steven Waldman, president of Rebuild Local News, who has called the cuts a slap in the face to the journalistic community.
  6. business, finance: As California faces a $12-billion budget deficit next year, the state's ability to support local news outlets has been compromised, raising concerns about the long-term impact on journalism in the state.

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