The Florence Times-Daily has a small staff of writers covering four cities -- Florence, Sheffield, Tuscumbia, and Muscle Shoals. While some of the writers are more skilled than others (both in writing and reporting), for the most part, the paper does a great job of staying on top of news and taking on ambitious long-term projects. For a small paper, it attempts to do a lot -- and often succeeds at it. I wish their coverage was less focused on local politics and news though -- the national and international coverage is a little lacking.
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