The Indiana Publisher

"The U.S. can do the same," McMillan said, adding that his own papers have seen advertising disruptions by Big Tech. "LJSA gives Congress time to fix it." Woolsey agreed that the five- year sunset clause would allow newspapers "the breathing room to rebuild their business models" following once-in-a-lifetime soci- etal changes (COVID lockdown related, massive technology dis- ruptions, etc.). "While an industry asking for assistance is not par- ticularly unheard of (think of tar- iff requests, farm subsidies, etc.), for the newspaper industry, this is unprecedented. I promise you this industry would not be bringing this forward if we did not believe the relief is critically needed to help transition even the smallest community newspapers." Adapting to the ever- changing marketplace Gebhart also said Southern Community Newspapers is "hanging in there as best we can." "Basically, we mirror the over- all industry," Gebhart said. "Out of necessity we have cut expenses across the board because of declining revenues. We continue to adapt to the ever-changing marketplace caused primarily by digital influencers while remain- ing true to our core values related to local journalism. As a small media company, we needed the PPP loans to survive. Thankfully, I think we're weathering the storm for the time being." Over the next few years, Gebhart believes his company will continue to transform from print centric to digital. "While I believe print will be a factor for many years, we need to stay dili- gent to the future of a digital first world. In an industry that used to be programmed for growth by just joining the parade, we now must constantly come up with new and innovative ways to meet the needs of our readers and our advertisers." This is not an "us vs. them" scenario All three media executives flatly rejected the idea that accepting the tax credits would impact their newspapers' cover- age of the federal government or other government institutions. "Newspaper publishers in Canada received help," McMillan said. "Did you see its coverage of government change? No. We serve readers first. Our ability to be the independent watchdog actually increases if we sustain and grow reporters." Gebhart agreed, saying: "On the editorial side, we do not allow the business side of the company to alter our coverage of local businesses and governments." Woolsey said that by accept- ing tax credits, "all it ensures is we will be able to do a better job of reporting the people's busi- ness." He said, "Newspapers and the government are not adversaries — far from it. We both work to serve our commu- nities and tend to work together to that end. I work with many elected officials who would be greatly impacted if their local newspaper was not there to help raise opportunities to address and resolve on behalf of their constituents. This is not an us vs. them scenario, as many in 'scare the pants off our viewers' media like to portray. We are all here to serve our communities and are passionate about how to arrive at those ends." Woolsey added, "My entire life, I've read about tax credits and financial subsidies for indus- tries — from farms to steel — to even the most obscure business segments. And, unlike the LJSA with its sunset clause, many of these will forever be in place. The newspaper industry is not asking for a handout, but simply a hand to navigate a societal and eco- nomic transition. We are proud of our independence, both financial- ly and in our role in democracy. And I can promise you, this ask is not anything any of us feel excit- ed about — but we get it. Today is a historic time of change, and as fast as we move, we recognize this might be that one time we ask for a hand. Again, we are not asking for massive, long-term subsidies but rather a short-term and narrow tax relief provision to allow newspapers to employ people while reimagining their business models." The purveyors of truth Gebhart stressed the need for passage of the LJSA, saying, "Local newspapers are the pur- veyors of truth in a community. In the communities where we provide news coverage, we are the sole source readers have to keep up with local government and events. The same is true for hundreds of other newspapers across the country. More in-depth reporting by the local newspaper is in the best interest of all citi- zens. LJSA helps everyone — for the common good." McMillan also noted that the LJSA includes a tax credit for local businesses to advertise. "Since our newspapers reach the largest audience in our com- munities, ads delivered to that audience spur response and extra business. As each local business grows by advertising, it keeps/grows its employees and pays the government more taxes. Advertising tax credits can help hundreds of thousands or millions of local businesses recover." Credits Continued from Page 5 Questions? Contact the HSPA Legal Hotline. HSPA Executive Director & General Counsel Steve Key is available to answer your questions about the Open Door Law, access to documents & more. Email skey@hspa.com or call (317) 803-4772. Look for the Hotline column every month in the Indiana Publisher and at hspa.com. "We are all here to serve our communities and are passionate about how to arrive at those ends." — Leonard Woolsey president, Southern Newspapers l December 2021 Page 11

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