Vermont lawmakers hear bill to direct state advertising toward local news outlets

Representative Barbara Rachelson, a co-sponsor, introduced H.244 to the House Committee on Government Operations & Military Affairs, saying the bill would require that a share of state advertising spending be placed with Vermont-based or Vermont-serving news organizations. "We're taking money that we already have, that we've already allocated for advertising, we're just directing it toward Vermonters," Rachelson said.

Representative Shay Waters Evans, a co-sponsor who previously worked as a local reporter and editor, told the committee: "I really cannot overstate how important local news is for democracy." She and other witnesses said the bill seeks to bolster community journalism without increasing state advertising budgets.

Paul Heintz, a reporter and adviser to the University of Vermont's Center for Community News, said a coalition of Vermont news organizations supports a modest policy that would not add state spending. He asked the committee to require greater transparency from the Department of Buildings and General Services (BGS) so the state can better account for where advertising dollars go. "Precisely how many state advertising dollars are leaving Vermont is not entirely clear," Heintz said.

April Barton of UVM's Center for Research on Vermont presented the group's survey of public payment records and estimated about $7.5 million in state advertising expenditures for fiscal 2024, with roughly $4.5 million (about 61%) to Vermont vendors and about $2.9 million (about 39%) to non‑Vermont vendors. Barton cautioned that the totals include tourism marketing and that current records do not always show how advertising agencies re-spend contracted dollars, leaving gaps in transparency.

Laurie Henson of Rebuild Local News described H.244 as an "ad set‑aside" approach used in other places to shift existing government advertising toward local and community outlets. Henson said the bill would preserve editorial independence by leaving content choices with agencies and advertising firms while requiring a third party — proposed in the bill — to help monitor fair distribution. She noted an example reported in New York City where a similar policy generated about $17 million for ethnic and community media and said Vermont could see similar, though smaller, benefits.

Representatives from Vermont outlets told the committee how local reporting serves communities. Kathy Resmer, deputy publisher of 7 Days, described enterprise reporting and the newspaper's local events and education work. Angelo Lynn, editor and publisher of the Addison County Independent, and Wendy Mays, executive director of the Vermont Association of Broadcasters, gave examples of small newsrooms stretched thin and warned that some advertising buys placed exclusively through out-of-state agencies can reduce coverage and reach in parts of Vermont.

Witnesses and sponsors said the bill would exempt tourism marketing and would allow agencies some discretionary spending: witnesses described an 80% local-targeting floor in the bill draft that would leave about 20% of ad budgets for agencies to spend as they choose. Committee members asked how the bill would define "local" and how digital and social-media buys would be handled; witnesses said the draft takes a broad approach that includes broadcast and print, nonprofit and for-profit outlets, and broadcasters that hold FCC licenses in Vermont, and that the state could buy social-media placements through Vermont-based advertising agencies so part of the dollar remains in-state.

The committee heard no formal motion or vote on H.244 during the hearing. Sponsors and witnesses requested prompt committee consideration and offered to work with staff and agencies to refine definitions and reporting requirements.

The hearing closed with the chair saying the committee would "switch gears" to the next bill on the agenda.