I can see both viewpoints but think a combination of the two is more the way to go.
Consider, it's one thing to have a portfolio and you need that but, when you add actual published work with your byline then the power of the portfolio is much stronger.
If you have to do some free work to get published it's not a bad idea. The hard part is to move on to paid work quickly.
The reason why I'm against the idea for beginners to offer their time to work for nothing at local newspapers is simply because there's is no future (
read job) to be had there. Heck, I've done that myself 25 years ago, back in the days I needed a B/W darkroom in my apartment to print my shots within couples hours, and still, it wasn't a full time job back then, but I was getting pay though!. It certainly isn't nowadays... You would just get exploited, and incur expenses and a lot of risks for your gear.
The OP has to figure out if he really wants to do this as a living, then if so, get the appropriate education, find a job (paid or unpaid for a short period of time), pay his dues, and work is way up. Good luck! If the OP is just interested in providing his services as a photographer to local newspapers, then he can provide a sample of his work on a real assignment as a try out, but he must be paid for the next ones, otherwise it's plain slavery.
Once again, what's the point of paying to have a job? Regarding his portfolio, being published or not doesn't make any difference. It just says that someone else before paid for your pictures and used them in a printed publication. That's all what it is and no one knows if it happened only once or thousand times. I've been published in magazines every month for the last 10 years, but I only had to provide one set of pictures as a sample of my work at the very beginning. Then the deal was sealed.
Today, you can make your own portfolio and publish yourself on the Internet. If your customers can't see the value of your work, well... welcome to the 21st century and work harder, or find another job!