California-Google News Funding Deal Pared Down in First Year

California Gov. Gavin Newsom’s revised budget proposal would reduce funding by $20 million for a joint project with Google to fund local newsrooms, state Department of Finance Director Joe Stephenshaw said Wednesday.

The $10 million for initial funding is significantly lower than the originally promised $30 million from the state, after which it would contribute $10 million annually for four more years. As part of the original deal, Google pledged to chip in $172.5 million over the five years, combining with the state for a total of around $250 million.

The money is part of an agreement negotiated by Alphabet ...