News reporting is essential for democracy to function successfully, but the two North Country Congressional candidates disagree on how to make sure local journalism will be available in the future.

In the last 15 years, more than 2,000 newspapers have closed nationwide – including in Canton and Ogdensburg last year. Increasing social media usage as well as declining advertising and subscription sales have been blamed.

 “This is a serious public problem,” said Michelle Rea, executive director of the New York Press Association that represents more than 800 newspapers and news websites. “The local news crisis has also precipitated a general disengagement from local democratic life.” 

“Local reporting is absolutely critical,” said Rep. Elise Stefanik, R-Schuylerville, who is seeking her third term.

She opposes proposals to tax social media and use the proceeds to support local news operations. But says she would “be open to tax cuts or tax incentives” for those who work in the news gathering industry.

“I’m proud to be one of the only candidates that has consistently led by example and purchased advertising in our local newspapers, local online outlets as well as local TV and radio,” she added. “And we’re going to continue doing that.”

Democrat Tedra Cobb of Canton, who is running a second time for the 21st Congressional seat, says local journalism “is vital and having journalists who are members of the community who report on the community, that is so important.”

As for taxing social media, “Google is not hurting, Facebook is not hurting, so I think that is a good opportunity to look at,” she said. Other tax breaks that would benefit news reporting efforts “might be an opportunity,” she added.

Cobb said the Newspaper Revitalization, a bill that would make it easier for newspapers to secure non-profit status, merits consideration. “Becoming a not-for-profit is one way of looking at tax breaks,” she said.

Student loan forgiveness for news media professionals, similar to what is available to some medical staff and teachers, is another possibility, she said.

Both candidates were interviewed before the Local Journalism Sustainability Act (HR 7640) was introduced into Congress July 16. The bill would provide tax credits for news subscribers, small businesses advertising in local media, and publishers who employ journalists and Monday, Stefanik signed on as cosponsor.

Finding sustainable funding sources for local news reporting is important, said Rea.

“As local newspapers disappear, turnout in state and local elections has fallen, and communities see fewer candidates run for local office,” she said.

“Those who read, listen, and watch the news are not just consumers, but citizens that rely on news publishers to meet the demands of living in a democracy.

Both Congressional candidates support funding for public broadcasting. Locally, North Country Public Radio in Canton receives more than $410,000 in federal, state and county grants each year and more than $700,000 in support from St. Lawrence University, according to their 2019 audited financial statement.

“I think it is an important service. It is important I think to ensure that they are fair and objective,” said Stefanik. However, she does not favor government funding for other sources of local news reporting.

“I don’t think that it is the right model to have government support for all independent news outlets,” she said.

“I think you do see very successful independent news outlets, who are very deeply tied into their communities, are able to expand their newsrooms and are creative, and we have a number of them in the district.”

Cobb said she is open to considering government funding to support local journalism organizations other than public broadcasting. “I don’t know what that would look like exactly. If you are for-profit, what does that look like? Here’s the point. We’re at the table, we’re talking about it. It’s vitally important. That’s the problem solving we need.”

Rea, representing most of the state’s newspapers, says “policymakers should intervene and ensure a sustainable future for local journalism.”

“The need for local journalism has not changed over time, but the economic dynamics capable of sustaining a profitable model for local journalism have,” she said.

“While a constitutional and public commitment to a free press on its own will not ensure the future economic viability of local news, public intervention can help sustain and support strong, independent media for every community in the U.S.”

She advocates tax credits or deductions for subscriptions and news gathering expenses as well as public funding to local newsrooms to experiment with new models and pay for reporting fellowships.

To address ways large online platforms have undercut the local news business model, Rea proposes a tax on sites displaying publishers’ content. She also suggests a temporary exemption from antitrust laws to give news publishers the ability to collectively negotiate with large online platforms to create a fairer, more balanced relationship.

The Local Journalism Sustainability Act provides for tax credits for subscribing to a local newspaper. H.R. 7640 also offers a tax credit to small businesses that advertise in local media and a payroll credit for news organizations that employ journalists.

“Our local news outlets are so important to the North Country, especially in our more rural or isolated areas,” Stefanik said in announcing she is a co-sponsor.

“Throughout the COVID-19 pandemic, our news outlets, newspapers, and TV and radio stations have gone above and beyond to deliver up-to-date information to our North Country residents in a timely fashion. I am proud to be cosponsoring this bill to support readers, advertisers, and publishers and keep local news media sustained. I look forward to advancing this legislation along with my House colleagues and supporting initiatives like this to keep local journalism thriving.”

The bi-partisan bill would provide:

• a $250 annual tax credit to subscribers who invest in local journalism

• a tax credit up to $5,000 the first year and $,2500 the next four years to small businesses that advertise in local media, providing a meaningful incentive to support the important work of news organizations

• a tax credit to news publishers for each news reporter or editor employed, equal to 50% of the salary the first year and 30% for the next four years

Many newspapers have seen their revenues plummet since the pandemic started, forcing them to lay off news staff, said Dean ridings, CEO of America’s Newspapers, a 1,500-member national newspaper advocacy organization. “That threatens the access to vital news by people in the community,” he said.

The Seattle Times supported the measure in a recent editorial. “This bill would create some breathing room while more systemic reforms are put in place to ensure a vibrant, local free press system will continue to serve communities across the country.”

The bill is co-sponsored by Reps. Ann Kirkpatrick, a Democrat from Arizona, and Dan Newhouse, a Republican from Washington state.

Advocates for the bill are striving to get 100 Congressional representatives to co-sponsor the measure and are working on obtaining bipartisan support for a Senate bill. They hope it will be included in the next stimulus bill or adopted by the end of the year.

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