Assemblymember Buffy Wicks played a key role in negotiating a deal between media outlets and tech companies. She speaks during a committee hearing in the Capitol Annex Swing Space in Sacramento on Aug. 15, 2024.LAist is facing a budget shortfall, but our mission to provide fact-based journalism is stronger than ever. We cannot do this important work without your member support today.
In an interview, Makinen said that the deal was “not what we had hoped for when set out, but it is a start and it will begin to provide some help to newsrooms across the state.” The agreement replaces two bills lawmakers had pursued the last two years as they tried to secure a cut of tech money to prop up California’s struggling local news industry. Following a nationwide trend, media companies have hemorrhaged jobs over the past two decades as advertisers fled print media for the internet and technological advancements reshaped how readers consume news.
Another factor: Some proponents said it was unlikely Gov. Gavin Newsom, who pledged no tax increases this year, would sign Wicks’ bill, which could be seen as a tax on tech companies. Newsom in a press release today praised the deal, though his spokesperson Alex Stack on Tuesday denied the governor was involved or had taken a position on the bill.
The guild said it was particularly concerned the deal involved a program promoting artificial intelligence technology, which it saw as a concession to the tech industry that could result in a further loss of reporting jobs.