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* Considering that the Illinois Local Journalism Task Force’s new report reveals that “journalism jobs at Illinois newspapers have plummeted 86 percent” since 2015, this photo showing more task force report presenters than actual journalists is worth a thousand words…
Journalists covering a press conference about journalism. đ°đď¸ pic.twitter.com/RdjJwW3Qdk
— Brenden Moore (@brendenmoore13) January 17, 2024
* I do take some issue with the report’s analysis. For instance…
Newspapers have always described their three largest costs as people, paper, and distribution, including postage. Unfortunately, as postage, paper and gasoline prices have gone up, people have taken the hit.
One actual problem these days is that lots of large news media companies are leveraged to the hilt. Revenues are diverted to loan/bond payments. Another is that some companies are brutally squeezing every last dollar they can from the local papers before the outlets eventually die. And another is just plain old greed. Newspaper profit margins used to be pretty hefty. But with those margins vanishing, ownership is cutting into the marrow for their short-term profits.
* So, I’m very skeptical of these proposals unless taxpayers can be assured that the government isn’t throwing good money at bad-faith actors…
Subscription tax credits
Several types of tax credits can be utilized to benefit local news. The first, subscription tax credits, provide tax credits to state residents who subscribe to digital or print media. A bill involving subscription tax credits in Massachusetts, still in the amendment process, would offer state residents a $250 tax credit for digital or print media subscriptions to community newspapers. […]
Advertising tax credits
These credits are provided to small businesses that advertise in local news outlets. As a result, this type of tax credit provides benefits to local businesses, local economies and local news. These benefits were studied in the 2022 Colorado Market Study, which found that 85% of consumers believe a product is ârightâ for them if seen in a news product. The study also found that advertisements in newspapers produce a return on investment that is 20% higher than that generated from online search and 10% higher than social media. […]
Labor/payroll tax credits
These credits intend to incentivize hiring, retention and fair pay of local journalists. The Local Journalism Sustainability Act, a proposed federal `of which Rebuild Local News is a strong advocate, includes payroll tax credits. […]
Tax exemptions
As passed in the state of Washington, a tax exemption will excuse local news outlets from state business and occupation (B&O) taxes, which are a tax on gross receipts. Illinois does not have such a tax, but a similar move would be an exemption from corporate income taxes. […]
Advertising set-asides:
A type of public policy that has proven beneficial for local news in New York City is the advertising set-aside, which mandates a percentage (often at least 50%) of government advertising dollars to be spent on ads in local news/media outlets. This program is considered beneficial because community media outlets are likely to reach the intended audiences of public information campaigns; thus, it helps the city reach the communities it serves.
There’s more, so click here to read the rest.
posted by Rich Miller
Wednesday, Jan 17, 24 @ 12:19 pm
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Pffffft. The hardest bill to pass in springfield is a tax credit, and here we have a few, with an exemption (an even greedier tax grab) to boot.
Theres good journalism out there. Reporters are getting into the newsletter game (cough cough 30 years too late for statehouse types). This is lazy begging for government to save them after theyâve been their own worst enemy for years.
Comment by Halfback Option Wednesday, Jan 17, 24 @ 12:36 pm
Thanks for covering this very important topic.
The research paper was worth reading from start to finish.
Hopefully these ideas will get serious consideration from Illinois residents and our members in the GA.
Comment by Back to the Future Wednesday, Jan 17, 24 @ 1:04 pm
I find it hard to believe the GA will pass tax credits and the like to benefit Alden Global Capital, which owns the Tribune and its suburban papers.
Comment by George Ryan Reynolds Wednesday, Jan 17, 24 @ 1:14 pm
I applied for the PAR program at SSU back in 93 or 94. I was crushed when I wasn’t accepted. Now I look back thank Charlie Wheeler for saving me a life as an underpaid, soon-to-be unemployable journalist.
Also he was right. I was better suited to politics than journalism. Funny how things work out.
I’d consider tax credits for companies based on hiring/retaining reporters, but I am not persuaded the others mentioned will have much impact.
Comment by 47th Ward Wednesday, Jan 17, 24 @ 1:24 pm
A tax break for poor people who buy newspaper subscriptions ignores the fact that when youâre really poor, cutting your magazine and newspaper subscriptions is one of the first things you do to tighten your belt, and nobody in that predicament is going to wait until tax refund time to make up the cost.
Subsidizing the reporter salaries or supplementing them somehow makes the most sense to me. If you give the paper money directly it would need guardrails to keep them from spending it on non- news areas like their debt or shareholders dividends.
Comment by Give Us Barabbas Wednesday, Jan 17, 24 @ 1:41 pm
Payroll tax credits are a non-starter. If my employer has to dump 6.2% of my salary into the social security abyss, so should the local paper.
Comment by City Zen Wednesday, Jan 17, 24 @ 1:56 pm
Bingo. Unless there’s a way to demonstrate that every taxpayer dollar diverted goes directly to hiring *additional* personnel, I wouldn’t give a dime to the major players in Illinois who own legacy newspapers — Lee, Alden and Gannett (or, as I call it, The Company That is Really GateHouse). The state would be better off diverting funding to public radio stations by appropriating money to university specifically for that purpose. Their coverage is free and not subject to exorbitant subscription rates and accessible to everyone online and on the public airwaves. // “Iâm very skeptical of these proposals unless taxpayers can be assured that the government isnât throwing good money at bad-faith actors”
Comment by Chris Wetterich Wednesday, Jan 17, 24 @ 2:13 pm
Agree that investing in public radio as well as free weekly papers is a good idea. And that generates experienced reporters who could go on to work for legacy newspapers and local tv news too.
Comment by Give Us Barabbas Wednesday, Jan 17, 24 @ 2:27 pm
As legal and court notices make up a large portion of the advertising budget for these newspapers, and as they rabidly resist any attempt to remove the statutory cash cows, I think that the government probably subsidizes local newspapers enough as it is.
Comment by Just Another Anon Wednesday, Jan 17, 24 @ 2:28 pm
“Subsidizing the reporter salaries … .”
[Sarcasm font on]
“That’s a terrific story. And we have newspaper people on the payroll, don’t we, Tom? And they might like a story like that.”
Comment by Anyone Remember Wednesday, Jan 17, 24 @ 2:46 pm
I would support some sort of subsidy for publicly-owned journalism, and likely nonprofits located predominantly in the circulation area.
Comment by thechampaignlife Wednesday, Jan 17, 24 @ 4:07 pm
How about putting any funds into getting government information online at all levels, then some entrepreneurs will figure out with AI how to make it profitable. I agree with commenters that those who purposefully run their business into the ground while milking every possible dollar should not receive public money. I believe this is simply the last gasp of those greedy people.
Comment by Vote Quimby Wednesday, Jan 17, 24 @ 7:17 pm