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Business|How Local Officials Seek Revenge on Their Hometown Newspapers

https://www.nytimes.com/2023/06/18/business/newspapers-public-notices.html
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HOW LOCAL OFFICIALS SEEK REVENGE ON THEIR HOMETOWN NEWSPAPERS

When coverage upsets them, towns and counties are revoking newspapers’ lucrative
contracts to print public notices.

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Kim and Randy Shepard are the publishers of The Reporter, a newspaper in
Delaware County, N.Y., edited by Lillian Browne, right.Credit...Richard Beaven
for The New York Times


By Emily Flitter

Reporting from Delhi, N.Y.

June 18, 2023, 5:00 a.m. ET

Two of the most powerful women in the village of Delhi in central New York sat
face to face in a brick building on Main Street for what would become a fight
over the First Amendment.

It was the fall of 2019. Tina Molé, the top elected official in Delaware County,
was demanding that Kim Shepard, the publisher of The Reporter, the local
newspaper, “do something” about what Ms. Molé saw as the paper’s unfair coverage
of the county government.

Ms. Shepard stood her ground. Not long after, Ms. Molé struck where it would
hurt The Reporter the most: its finances. The county stripped the newspaper of a
lucrative contract to print public notices, subsequently informing The Reporter
that the decision was partly based on “the manner in which your paper reports
county business.”

The move cost The Reporter about $13,000 a year in revenue — a significant blow
to a newspaper with barely 4,000 subscribers.



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In most of the country, state and local laws require public announcements —
about town meetings, elections, land sales and dozens of other routine
occurrences — to be published in old-fashioned, print-and-ink newspapers, as
well as online, so that citizens are aware of matters of public note. The
payments for publishing these notices are among the steadiest sources of revenue
left for local papers.

Sometimes, though, public officials revoke the contracts in an effort to punish
their hometown newspapers for aggressive coverage of local politics.

Such retaliation is not new, but it appears to be occurring more frequently now,
when terms like “fake news” have become part of the popular lexicon.

In recent years, newspapers in Colorado, North Carolina, New Jersey and
California, as well as New York, have been stripped of their contracts for
public notices after publishing articles critical of their local governments.
Some states, like Florida, are going even further, revoking the requirement that
such notices have to appear in newspapers.



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“It’s gotten worse over the years in terms of trying to use contracts and laws
to lash out at newspapers,” said Richard Karpel, the executive director of the
Public Notice Resource Center, a nonprofit group focused on promoting government
transparency.


Image

The Reporter lost a lucrative county contract after its aggressive coverage of
local government.Credit...Richard Beaven for The New York Times


The trend is the latest example of how public officials and wealthy individuals
are waging war on news organizations that cover them aggressively.

Many politicians, including former President Donald J. Trump, have sought to
delegitimize the mainstream media. Others, like former Gov. Sarah Palin of
Alaska and former Representative Devin Nunes of California, have filed libel
lawsuits that courts have dismissed. In some cases — like the New Hampshire
journalist whose home was vandalized after an exposé about a local businessman —
the threats have spilled into the physical realm.

Legal experts said it was unlawful for elected officials to weaponize public
contracts. “Under the First Amendment, governments cannot retaliate against
anyone based upon the viewpoints that they express on any issue,” said Thomas
Hentoff, a partner at the law firm Williams & Connolly who specializes in First
Amendment law.

Sometimes, it is hard to prove that a local government is revoking a contract
because of its unhappiness about a newspaper’s coverage. But other times, the
rationale has been more or less explicit.



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Early in the Covid-19 pandemic, for example, officials in Custer County, Colo.,
replaced the longtime public health director with a man whose educational
credentials seemed questionable. The Wet Mountain Tribune reported that his
academic degree came from an unaccredited university that didn’t hold classes or
give written exams.

The county’s commissioners ended the Tribune’s contract for public notices and
awarded it to a smaller competitor. One commissioner said during a public
meeting that he did not want to support the Tribune because of its “witch hunt”
against the public health director.


Image

The Wet Mountain Tribune in Westcliffe, Colo.Credit...Matthew Defeo for The New
York Times

Image

Jordan Hedberg and Alyssa Meier own The Tribune, which nearly lost a
public-notices contract.Credit...Matthew Defeo for The New York Times


The paper’s publisher, Jordan Hedberg, sued the county in the fall for violating
the paper’s First Amendment rights. A federal judge encouraged the two sides to
negotiate. In December, the county agreed to reinstate The Tribune’s contract
for four years and to pay the paper $50,000 in damages and lawyers’ fees.



For small newspapers, whose budgets often can cover only one or two full-time
journalists and some freelancers, public-notices contracts are worth thousands
of dollars a year and can be the difference between staying afloat and sinking.
That is especially so since many of the papers generate meager advertising
revenue.



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“Savvy governments can use that as a tool to threaten you,” said Alex Shiffer, a
co-founder of the Shawangunk Journal in Ellenville, N.Y., which has about 3,000
print and digital subscribers.

Last summer, the town’s school district canceled the Journal’s public-notice
contract after several years of gripes about its coverage, including its
articles about the district’s poor graduation rate. The public notices now
appear in a newspaper 30 miles outside Ellenville.

Mr. Shiffer said the cancellation of the contract cost the Journal about $2,000
a year. “Not a huge hit to our budget by any means, but the damage in civic
engagement was much more profound,” he said.

In 2020, The Gaston Gazette, a North Carolina paper with a print circulation of
about 4,000, published an article that said county commissioners had improperly
settled workers’ compensation cases behind closed doors.

The chairman of Gaston County’s board of commissioners blasted the article as
“another instance of where the fake news media seeks to make news rather than to
report the facts.” The county sued the paper for libel. It later dropped the
suit but said it planned to pull its contract for public notices, estimating
that the move would cost The Gazette up to $100,000 a year in revenue.



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A lawyer for The Gazette’s owner, the Gannett newspaper chain, said in comments
to The Charlotte Observer that such a move would be unconstitutional. The county
hasn’t acted on its plan to cancel the contract. A county spokeswoman declined
to comment for this article.

The North Carolina Legislature is one of several looking to ease or end
requirements for public notices to be published in physical newspapers. The
state already changed the rule for Guilford County, where public notices have to
be displayed only on government websites.


Image

The staff of The Walton Reporter (since renamed The Reporter), shortly after its
founding in 1881.Credit...Delaware County Historical Association, Delhi


The fight in New York’s Delaware County dates to 2019, when The Reporter covered
a series of municipal hearings that touched on the county’s treatment of
teenagers in the juvenile justice system.

Under state law, the hearings had to be public. But journalists and other
observers said at the time that they were required to sit at one end of a long
room, while the hearings’ participants sat at the other end, talking quietly,
without microphones or speakers to help the audience hear. The Reporter
published a letter to the editor about the unusual setup.



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“I totally dispute that they were shoved into a corner,” Ms. Molé, the chair of
the county’s board of supervisors, said in an interview.

In November 2019, The Reporter published an article in which a lawyer for one of
the teenagers claimed that county officials had backdated a document in his
client’s case. (Amy Merklen, the county’s lawyer, said that the allegation was
false and that the newspaper didn’t reach out to her office for comment before
publishing the article.)

One day that fall, Ms. Molé showed up at The Reporter’s offices in downtown
Delhi to meet with Ms. Shepard. The women had known each other for decades.
Their children had played together. They occasionally saw each other at dinners
for the county’s Republican Party, of which they are members.

According to Ms. Shepard, Ms. Molé complained that the county government was not
being portrayed “in a positive light.” She wanted Ms. Shepard to fire the
paper’s editor, Lillian Browne, which Ms. Shepard said she had refused to do.


Image

Ms. Shepard said she had refused a county official’s request to fire The
Reporter’s editor.Credit...Richard Beaven for The New York Times


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Ms. Molé said she viewed some of The Reporter’s coverage as unfair and had
simply asked Ms. Shepard to cover the county’s hearings impartially.

The Reporter had been publishing the county’s public records virtually since the
newspaper’s founding in 1881. Last year, though, the board of supervisors voted
to award the contract to The Hancock Herald, a paper that covers a few towns at
the southeastern end of the county, nearly 40 miles away, and has less than half
The Reporter’s circulation of about 4,300.

In March, the county articulated its rationale in a letter sent to Ms. Shepard
and her husband and business partner, Randy Shepard, and signed by 38 officials.

“The flagrant manipulation of facts and the manner in which your paper reports
county business was one of the reasons the board of supervisors opted to change
the official county paper to The Hancock Herald in 2022,” the letter said. (Ms.
Molé said in a recent interview that the decision was actually about saving the
county money.)

Some county officials said they disagreed with the decision.

“They claim that The Reporter would publish biased articles,” said Wayne
Marshfield, who sits on the board of supervisors and signed the letter, but said
he had done so only to support his colleagues. “I always found it to be quite
factual, but they claim not, and I guess they claim that The Reporter wouldn’t
publish corrections, even though I believe they would.”



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The Shepards, who have defended their coverage of Delaware County, estimate that
losing the county’s public notices cost them $13,000 a year in revenue.

So far, the paper has not had to cut staff, but the Shepards are relying on
money they make from things like printing signs, T-shirts and posters to keep
The Reporter going. “As soon as we make a gain in one area, it seems like we
take a hit in another area,” Ms. Shepard said. They have hired a lawyer and are
considering whether to sue the county.

Ms. Molé denied that the fight with The Reporter was part of a broader trend of
conservatives attacking the media.

“We’re not like the raving lunatic Republicans,” she said. “It’s really not
about Republicans or Democrats at this local level. It’s about respect and being
fair.”

Image

Tina Molé, the chairwoman of Delaware County’s board of supervisors.Credit...Joe
Damone



Emily Flitter covers finance. She is the author of “The White Wall: How Big
Finance Bankrupts Black America.” @FlitterOnFraud

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