How can you know? If it's crap no one will read it and it will indeed be ineffective, which is obviously neither in the interest of the editorial team nor in the interest of those funding it. The audience reception remains the key.
I hardly find this more reprehensible than a private operator such as Ruppert Murdoch who assumes there is a political agenda behind his media empire. That empire is only meaningful because of the audience which is touched by it. If tomorrow people will consider it to be only junk and will stop reading it, then it would lose all of its power. Hence the same incitement to publish something judged credible/interesting to at least a certain audience.
Oh, as a media professional, I could not disagree with this more. The free market mechanism is absolutely terrible at slowing or preventing the publishing of "crap". Readers don't do a very good job at all at punishing outlets who publish horribly slanted, incorrect or sloppy stories, especially for political news. They are punished for being boring, or for having poor technical platforms, or not telling people what they want to read...but not for being wrong or slanted.
The target audience (and again, Indiana killed this project) for these releases are small newspapers in Indiana, many of which are running skeleton crews after layoffs. Even the most craven small town publisher wouldn't run a press release verbatim, but if it was packaged "like" an AP story, they would...and if the Gov's office decided to only publish executive news from their own outlet, rather than talking to other reporters, then the Gov's official line becomes even more important. If you don't have the money to publish your own stories (or to pay for a wire service fee), you're going to take what the state gives you, even if it's "crap".
Most states have some sort of news outlet. Indiana actually has one already, that publishes agricultural news. I think it's mostly run out of Purdue University, and outside of the direct report of the Executive branch. The Gov's office can't march down and change an NPR broadcast, or a Purdue wire service...but having a news wire service run directly out of the Governor's office that goes to newspapers *would* be pretty unprecedented in America.
Thankfully, the project was killed. If nothing else, yeah, it also a waste of money.