Journalism

cluded in a larger COVID-19 relief but it is difficult to know for sure.

Chrissy Terrell, senior director of corporate communications at Gannett, parent company of The Republic, said, “We have been working in conjunction with the News Media Alliance and are supportive of the efforts around this bill. We are very supportive of Congress’ efforts to recognize the importance of local journalism today and its role to keep our communities informed, healthy and safe.”

The Arizona Republic could be eligible for the bill, as would some other papers owned by Gannett, according to Abigail O’Brien, a spokesperson for Kirkpatrick’s office.

More than 150 news companies and papers have undergone pay cuts, furloughs, layoffs or even shut their doors for good as a result of the pandemic, according to the Poynter Institute, a journalism think tank.

“As the pandemic started to unfold, I got really, really nervous,” said Francis Wick, CEO of Wick Communications, which owns a handful of local newspapers across 11 states, including Arizona. “Our family company, which is going into its 96th year of business — we really don’t have much debt. But we don’t have a lot of resources, either.”

COVID-19 caused the company to reduce print circulation, consolidate some newspapers and temporarily lower salaries by 20% said Wick, who gave input on the bill. The company, which owns the Herald Review in Sierra Vista and

bill, the Nogales International, along with about a dozen other publications in the state, is down 30% in top line revenue.

The company is headquartered in Sierra Vista.

“Many of us have a vision and a game plan on how we transition to a new digital future. And it takes time, because you’re moving from a legacy model to a more futuristic, digitally based model. You can’t just abandon where you are all at once by any measure,” Wick said. “This pandemic just compressed time.”

What the bill would do

The bill proposes a five-year, non-refundable tax credit for subscription costs to local newspapers of up to $250 per year. It would cover 80% of the first year of subscription costs and 50% during the next four years. It can also be used for subscriptions to nonprofit news organizations.

It would also provide a five-year refundable tax credit for local publications to pay reporters, providing up to 50% of compensation costs in the first year and 30% each year for the four years, up to $50,000 each year. The average pay for a reporter in 2018 was $43,000, according to the Bureau of Labor Statistics, although smaller publications often pay less.

The bill defines local newspapers as publications produced online or in print that primarily create content related to local news and current events. They must have a readership base within the state or 200 miles of what is generally covered.

A coalition of news industry leaders representing more than 4,000 locally owned and nonprofit media organizations signed a letter to Congress in May, asking lawmakers to consider supporting local journalism.

“Amid this global pandemic, Americans have turned in massive numbers to local news for the most trustworthy information. But what happens when this essential, and even life-saving information, cannot be found?” the letter says.

More than 36,000 reporters have been laid off since COVID-19, according to the letter. It suggests Congress support PPP loans to prevent layoffs and closures in newsrooms and spend federal advertising dollars with local media.

Steve Waldman, president and cofounder of Report for America, which signed on to the letter, places journalists with local media organizations in an effort to fight the decline of local news. The Republic has a Report for America journalist covering south Phoenix news and issues.

Waldman sees the bill as adequately preventing government dollars from exerting influence over editorial decisions — like which stories make it into the paper— which could prevent a dangerous conflict of interest.

Instead, it incentivizes news organizations to prove their worth to communities by allowing consumers to choose where to subscribe, he said.

“Their bill provides significant help for local news without entangling the federal government in making winners and losers decisions about which news organization to give money to. Instead they are empowering consumers and businesses to make the decisions themselves and provide them money,” Waldman

said.

While the bill could receive some pushback because of partisan divides over the role of the media, most lawmakers support the role of the press, Waldman said.

The third and final provision of the bill is aimed local advertisers — key stakeholders for media that rely on advertising for funding. Industry giants and small papers alike are contending with how to stay profitable using subscription based models while transitioning away from print advertising into digital. With the pandemic, local businesses shutting their doors means losses in advertising for media.

Local businesses with fewer than 1,000 employees could receive a tax credit, up to $5,000 the first year and $2,500 in the subsequent four years, to advertise in local news organizations, including local radio and TV news.The bill would cover 80% of costs in year one and 50% the next four.

Wick said the bill could act as a bridge for local organizations during a time of need. The funds proposed are not nearly enough to cover costs, he said, but are enough to make a difference.

He also see a silver lining: soaring readership during the pandemic across news organizations, signaling the necessity of news to keeping people informed.

“We’ve been committed to this for a long time now. And the last thing that I’m going to allow is for this to end on my shoulders, so I’m going to do everything I can. And that’s why this bill I think, is very meaningful and can make a material difference for so many local markets.”