Google is currently in discussions with the California government regarding a potential $110 million investment aimed at aiding the state’s struggling news industry. However, there’s a notable condition: taxpayers would need to contribute an additional $70 million.

Buffy Wicks, a Democratic state assemblywoman from Oakland who is actively negotiating the agreement with Google, has reached out to Governor Gavin Newsom’s office in hopes of garnering the governor’s support for taxpayer funding, despite California facing significant budget deficits. Sources suggest that an agreement was verbally reached between Google, the governor, and Wicks back in late August. While a written framework has since taken shape, some key elements are still to be finalized.

Wicks emphasized that this framework represents the most impactful agreement achievable under the current political climate. She expressed hope that this would serve as the starting point for supporting California’s journalists.

However, despite the public announcement of the deal shortly after Wicks and Google’s August agreement, it had not been disclosed until recently that the deal was contingent on government funding. Google’s insistence on taxpayer contributions is viewed as setting a precedent that could be leveraged in negotiations with other states seeking similar agreements. There has also been surprise regarding the potential managing entities for the news fund established by the agreement, specifically the University of California, Berkeley, as discussions involving the University of Southern California for the same role remain undisclosed.

While Wicks, Google, and the governor have been promoting this agreement, many California journalists have criticized the state for failing to extract more funding from the tech giant, viewing this as a missed opportunity to ensure the vitality of local news. Others assert that securing cash infusions from one of the world’s most valuable companies represents the best possible outcome for the news industry.

Neil Chase, CEO of the California nonprofit news organization CalMatters, expressed skepticism about whether tech firms could innovate better technologies while simultaneously contributing to the decline of newspaper advertising.

The American newspaper industry has been in continuous decline for decades as traditional advertising has shifted towards digital platforms. Companies like Google and Facebook provide news coverage for free while earning revenue through advertising. According to a report from Northwestern University’s journalism school, more than 2,900 newspapers, primarily small, local weeklies, have closed since 2005 due to consistent revenue losses.

Legislators and nonprofit organizations have been working to find viable support for local journalism, underscoring its importance for citizens in a thriving democracy. However, there is substantial disagreement on the best path forward.

In California, two legislative proposals have been introduced targeting fundraising from Google and other tech companies to sustain the state’s news industry. Senator Steve Glazer from the East Bay has proposed a “link tax,” which would impose fees on Amazon, Meta Platforms Inc., and Google’s parent company, Alphabet. This revenue would contribute to a $500 million tax credit distributed to news organizations that employ California journalists. Additionally, Wicks has drafted a bill aimed at charging companies like Google and Meta for news content produced and advertised in California.