the alias $level requires that you provide a adress. I would do something like
Code:
on *:text:!news*:#: {
if ($level($address($nick,1)) >= %newslvl) {
set %news $2-
notice $nick Updated News To: %news
msg # Current News: %news
}
elseif ($level($address($nick,1)) < %newslvl) {
notice You do not have access to this command. 
}
}

I haven't tested that and I don't use levels much but that should work.