A bill that would require 50 percent of the state’s advertising budget – an estimated $5 million – to go toward Connecticut-based newspapers and nonprofit newsrooms passed out of the Government Administration and Elections Committee on Friday with a party-line vote.
The bill, supported by a number of Connecticut-based news organizations, was portrayed as a way to bolster Connecticut’s media landscape during a time in which local news has been decimated by the internet, social media, and the takeover of major newspapers by hedge funds.
Lead proponent of the bill, Rep. Kate Farrar, D-West Hartford, said it was a revenue-neutral way to not only meet the state’s advertising needs but also bolster local news and media. Similar bills have passed in cities like New York City and Chicago, although Connecticut would be the first state in the nation to implement such legislation.
“A free and independent press is a cornerstone of our democracy,” Farrar wrote in testimony. “The press holds us accountable as public officials, informs citizens about important issues, and provides a platform for diverse voices.”
However, Gov. Ned Lamont’s budget chief, Jeffrey Beckham, pushed back on the proposal, saying that assigning a fixed percentage to advertising spending “does not provide taxpayers with the best value for their advertising dollars.”
“When procuring advertising services, value is attained by procuring advertisements that effectively and efficiently reach the target audience,” Beckham wrote in testimony. “Sometimes the most effective approach is to advertise with local news publishers; sometimes it is more effective to advertise with national media outlets.”
During the committee meeting, Sen. Rob Sampson, R-Wolcott, opposed passage arguing that he agreed with Beckham’s assessment of the bill. “It sounds good in theory,” Sampson said. “Except, the fact of the matter is that’s not how the world works.”
“When you start to create these red-line type boundaries, you’re effectively limiting your options to achieve the best price and you’re encouraging retaliation from other entities,” Sampson continued, echoing Beckham’s testimony, and saying that 50 percent was a “completely arbitrary number.”
Committee Chairman Rep. Matthew Blumenthal, D-Stamford, said the figure of 50 percent matches the Department of Administrative Services’ current “internal policy” to direct state advertising dollars to in-state news entities, and that the legislation would “enshrine” the practice into state law.
The legislation was widely supported by news media in Connecticut and other nonprofit organizations saying the bill could reverse the long trend of declining news coverage in Connecticut.
“The steady and deep decline of strong, universal local news coverage nationwide has resulted in a clear and present danger to the civic health of America’s communities and the ability of voters to make informed choices, or even vote at all,” Managing Editor for Daily Voice Joe Lombardi wrote in testimony. “The passage of this bill can help reverse the decline in local news and help keep Connecticut residents knowledgeable and informed about the many key issues that concern them.”
The bill ultimately passed along a party-line vote 13-5 and will be forwarded to the House of Representatives.
“I get the idea here, we’re trying to keep Connecticut new media alive and give them a funding stream while simultaneously keeping taxpayer dollars in state,” Sampson said. “I think there’s a duty, when the state of Connecticut is spending taxpayer money, to get the best value for what they’re buying.”
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