Amid AI Labor Disputes and Persistent Deficits, VTDigger CEO Sky Barsch to Leave in June
VTDigger’s challenges reflect broader pressures on Vermont journalism. In August 2025, Vermont Public eliminated 15 positions. Vermont has lost 75% of its newsroom workforce since 2000.
Sky Barsch, Chief Executive Officer of VTDigger, announced on January 27, 2026, that she will step down from her position in June 2026. The announcement comes three years after Barsch was appointed CEO in March 2023 to lead the nonprofit news organization’s business operations while overseeing its fundraising and operational structure.
The departure marks the latest in a series of executive-level changes at Vermont’s largest digital news outlet. Editor-in-Chief Paul Heintz left the organization in February 2025, citing a desire to return to writing. Founder Anne Galloway transitioned from her leadership role in May 2022, leaving what some observers have described as a “founder gap” as the organization evolved from its startup phase.
Financial Performance and Revenue Structure
The Vermont Journalism Trust, VTDigger’s parent nonprofit organization, has faced significant financial pressures in recent years. According to IRS Form 990 filings available through ProPublica, the organization reported cumulative losses of approximately $1.7 million between 2022 and 2023, followed by a smaller deficit of $75,715 in 2024.
For fiscal year 2024, total revenue reached $2,947,321 while expenses totaled $3,023,036. The organization’s revenue composition shows heavy reliance on contributions, which accounted for 81.6% of total income in 2024, with program service revenue including advertising and sponsorships making up 17.5%.
The publication’s total assets declined from $2,419,383 at the end of 2022 to $1,692,871 in 2023, before recovering slightly to $1,822,869 in 2024, according to the nonprofit tax filings.
Founder Separation Agreement
According to IRS Schedule L disclosures reported by FYIVT, founder Anne Galloway entered into a consulting agreement with the organization for a total payout of $396,857 over 41 months. The agreement, which covers duties including attending occasional fundraising events and providing advice, was not detailed in a press release and became public only through the organization’s 2023 tax filings.
Labor Tensions Over Artificial Intelligence
In January 2026, the VTDigger Guild publicly protested a management contract proposal that reportedly included language allowing human journalists to be replaced by artificial intelligence to produce local news. Union members distributed materials arguing that AI technology without rigorous human oversight would damage news integrity.
CEO Barsch responded that AI is used only in “limited ways” at the organization, such as transcription and generating alt-text for images, with human judgment remaining central to editorial processes. The contract language suggests management viewed automation as one option for addressing ongoing labor costs.
Newsroom Consolidation
The organization has left reporter positions vacant to reduce expenses, resulting in what employees describe as “beat consolidation,” with remaining staff often covering multiple policy areas simultaneously. Seven Days reported that these staffing decisions coincided with Editor-in-Chief Heintz’s tenure and contributed to reported staff burnout.
Vermont Media Landscape Context
VTDigger’s challenges reflect broader pressures on Vermont journalism. In August 2025, Vermont Public eliminated 15 positions following a $2 million federal funding cut. Data cited in news reports indicates Vermont has lost 75% of its newsroom workforce since 2000.
What Happens Next
The VTDigger Board of Trustees will conduct a search for a new CEO to begin after Barsch’s June 2026 departure. The incoming leader will inherit an organization with demonstrated audience loyalty but ongoing financial constraints, unresolved labor negotiations with the VTDigger Guild over contract terms including AI usage, and the challenge of maintaining statewide investigative reporting capacity while operating on a revenue model still below operational break-even.
The next CEO will also need to address organizational structure following the loss of multiple executive-level leaders within a three-year period and navigate the organization’s transition from its founder-led origins to institutional maturity.
Editor’s Note: VTDigger and the Vermont Journalism Trust were contacted for comment but did not respond by the time of publication.
For years people have come and gone at Vt Digger like the Rain and Snow, many reports/articles. The struggles in Vermont seem to continue, in more ways than one, yet no one seems to care. Voting has consequences, and so does Money....