California lawmakers have approved a bill that seeks to throw a lifeline to the state’s struggling journalism organizations.
Assembly Bill 2222, which would create refundable tax credits for California local news organizations based on the number of journalists they employ, joins a litany of bills on Gov. Gavin Newsom’s desk.
The state Senate passed the bill on Sunday and the Assembly narrowly approved its amendments on Monday to send the bill to the governor’s desk, with some Republican lawmakers pulling their previous “yes” votes.
The approval comes just as the Legislature is set to adjourn its two-year session early this week.
The bill, introduced by Assemblymember Christopher M. Ward (D-San Diego) would work by assigning a “job retention credit” of $20,000 per journalist for up to five positions, and after that $15,000 for every additional journalist. Part-time positions would be awarded half-credits. It also stacks an additional $15,000 credit for each new hire, to incentivize expanding journalist head counts.
“This measure is a safety net for news outlets on the verge of closure,” said former state Sen. Steve Glazer, who is a proponent of the bill and during his Senate term pushed similar legislation.
Proponents may face an uphill battle persuading Newsom to sign the bill, which creates a unique revenue stream to pay for the program. Newsom typically spurns laws that make changes to the state budget after those fiscal discussions conclude in the first half of the calendar year.
AB 2222 represents the latest attempt by California lawmakers to bolster the news business, with governments globally discussing similar efforts. Canada implemented newsroom payroll tax credits in 2019 amounting to about $13,750 per journalist in an eligible newsroom.
AB 2222 would create the largest relief plan in the U.S. to date, with the state tax board estimating it would make more than $40 million available to the state’s newsrooms annually.
The California Taxpayers Assn. and groups representing business interests such as the California Chamber of Commerce opposed the bill because it raises taxes on employers.
The governor’s finance office issued an analysis opposing the bill for failing to outline a cap on tax credits and for seeking to subsidize existing jobs rather than encouraging the creation of more journalism jobs.
The bill is supported by the California News Publishers Assn., of which the Los Angeles Times is a member.
Newsom has until Sept. 30 to sign or veto bills.
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