SPJ NorCal Statement on Journalism Funding Deal

A deal reached between lawmakers and Google last week to bring nearly $250 million to California newsrooms over the next five years, unfortunately, isn’t the cause for celebration that it should be. 

“There is far too much we don’t know and what we do know concerns us,” said SPJ NorCal Vice President Ida Mojadad. “The deal trades lasting, structural changes to keep journalism alive and well in California for flimsy funds. It’s clear that Google, not journalists, got its way with this arrangement.”

The deal meant pulling Assembly Bill 886, closely watched legislation that would have required several big tech companies to pay into a fund for journalism outlets in the state, partially sharing in the ad profits reaped from news on their sites at last.  

The gist of the agreement has $180 million go toward a nonprofit under the control of the University of California Berkeley School of Journalism, at least $55 million of which will come from Google through 2029 and $70 million from state funds, The Sacramento Bee reported. Another $62.5 million funded by tech will go toward an AI accelerator. 

The Northern California chapter of the Society of Professional Journalists wholeheartedly rejects the manner in which this agreement came to be. Gov. Gavin Newsom reportedly hinted or threatened a veto without Google’s approval, handing away substantial leverage and undermining the efforts of elected officials advancing critical policy decisions. This is an entirely voluntary deal made in an undemocratic fashion. 

In the days following the announcement, many questions remain: How were the numbers decided? How did funding for artificial intelligence make it into the equation? How will the deal be guaranteed without legislative backing? How much will actually go to supporting local journalism and the communities who need it? What is the true portion of public vs. private funding given that the nonprofit donations are reportedly tax-deductible?

Some of these questions may soon be answered when SPJ NorCal representatives meet with Assemblymember Buffy Wicks, as we are told will happen soon. But we suspect that crucial details, particularly around AI innovation, are still being hashed out. In what forum, with which parties and guardrails, and how much will actually go toward using AI to improve journalists’ working conditions rather than replacing them altogether remains to be seen.

We echo points raised by the Central Valley Journalism Collaborative, including that taxpayer-funded journalism should not be hidden behind paywalls and that the California State University and community college systems should have some authority in administering the funds. The National Association of Hispanic Journalists also rightfully called for a wider share of the funds to go toward publications targeting underrepresented groups.

If this agreement arose out of a democratic process, criticisms and questions would be substantially quieter. We urge our journalists to join us in keeping a close watch as the agreement unfolds, and to continue discussing lasting, regulatory solutions to stabilize California journalism.

AB 886 wasn’t perfect and was always in for a bumpy road to passage and implementation. We urge lawmakers to learn from this ordeal, and craft a more successful legislative attempt in the light of day with key stakeholders.

Read SPJ National’s statement on the development here.