Committee hears testimony on S.84 to steer state advertising dollars toward local news

The Government Operations committee on March 14 heard testimony on S.84, a proposed change to state contract standards that would direct a larger share of government advertising toward community news organizations.

Proponents told the committee the change aims to shore up local journalism that they say has been shrinking for years. "We represent about 3,000 newsrooms around the country," said Steve Walvin, chair of the Rebuild Local News Coalition, who testified for the bill. He said "on average, two newspapers close each week in the United States" and that Vermont has seen a steep decline in the number of newspaper employees since 2013.

The proposal would not create new spending but would redirect existing advertising budgets, supporters said. Walvin cited New York City’s program as a test case: "New York... shifted about $15 million in advertising toward community news organizations," he said, and some outlets credited that support with hiring reporters during the COVID-19 pandemic.

Why it matters: witnesses and committee members framed the bill as a way to preserve reporting that helps civic engagement and governmental accountability. Walvin cited studies—he referenced work from Medill at Northwestern University—linking weaker local news coverage to lower civic participation and even to higher borrowing costs for local governments.

Committee members pressed witnesses on practical and fiscal details. Senator Bioski said she was "very much supportive of the concept" but asked whether shifting ad buys had raised agencies' costs in New York City. Walvin said the pandemic complicated comparisons and that he had not seen definitive evidence that agencies required additional budget authority to meet higher local advertising costs. He recommended including transparency requirements so the policy could be fine-tuned over time.

Members also asked how to prevent state dollars from flowing to low-quality or politically driven "pink slime" sites. Walvin described objective criteria the coalition supports—hiring at least one full-time local reporter, having a corrections policy, and carrying media liability insurance—and said ownership filters that exclude outlets controlled by political action groups or advocacy organizations can help reduce risk. "None of these filters are completely foolproof," he said, "but if you add a few of them together, they add up to a pretty good safeguard."

Senators discussed the target share of advertising to local outlets. The draft under consideration would set a high target (the committee’s draft used 80 percent), while members noted the house counterpart had reduced that figure to 70 percent. Walvin and senators urged adding transparency provisions so the percentage could be adjusted if agencies found it impractical.

Next steps: Walvin agreed to provide written testimony and materials the committee requested. No formal vote or motion on S.84 was recorded during the session.

Ending note: Committee members said they value flexibility for agencies in emergencies and other exceptional circumstances and asked staff to consider carve-outs and transparency rules as the bill is refined.