CPB’s financial analysis on alternative funding sources for public broadcasting, prepared by consultants at Booz & Co. and delivered to Congress in June, has had little impact on lawmakers’ views about continuation of CPB’s annual federal appropriation to date, CPB staff reported during a Sept. 10 board meeting in Washington, D.C.
In the report, analysts for Booz examined a range of options for replacing CPB’s federal aid — from selling commercial advertising to tapping spectrum auction proceeds or selling pay-channel subscriptions, among others. They concluded that withdrawal of federal aid would have a “cascading debilitating effect,” starting first with stations serving rural areas and ultimately leading to collapse of the public broadcasting system. The dire predictions haven’t made much difference in swaying lawmakers on Capitol Hill, CPB’s government affairs staff reported to the board. “I think it’s fair to say that in the past two-and-a-half months there’s been a little change in the conversation regarding funding for public broadcasting, and the idea of commercials,” said Michael Levy, CPB executive vice president. CPB staff have been meeting with key Republicans and Democrats on the House and Senate appropriations committees to discuss why a purely commercial model for public broadcasting is not a viable option. The Booz analysis predicted that public TV could earn more revenue from commercial advertising sales than it now does from underwriting, but the switch to ads would prompt a large portion of those who provide private support to the field — individual donors, foundations and underwriters — to withdraw their support, resulting in a net revenue loss.
Two of pubcasting’s chief critics on Capitol Hill have revived their bids to end CPB funding. Republican lawmakers Rep. Doug Lamborn (Colo.) and Sen. Jim DeMint (S.C.) circulated letters last week asking colleagues to help them “permanently defund” CPB. They are targeting the $445 million advance-funded appropriation proposed for CPB in 2015. CPB’s requested appropriation “represents no reduction from its prior year appropriation level,” the lawmakers wrote. “While so many Americans are making sacrifices around the country to make ends meet, CPB appears unwilling to do the same.” They said the country is more than $15 trillion in debt, and ending support of CPB “should be one of the easier decisions to make.”
The lawmakers point to compensation of two top pubcasting execs to bolster their political case.
Soon, listeners will hear celebrities read James Joyce’s entire masterpiece Ulysses via satellite and Internet radio; a New York City theater will use video-game technology to invent a new medium for the performing arts; and a San Francisco-based organization will craft computer data into interactive visual artworks. The projects are made possible through the newly expanded Arts in Media category from the National Endowment for the Arts, which this year branched out from primarily supporting public TV and radio programs. Last week the NEA announced 78 grants totaling $3.55 million, with an increased emphasis on technological innovation and multiplatform reach (Current, April 23). Several of the largest grants, $100,000 each, went to high-profile first-time recipients with strong digital components. Open-source pioneer Mozilla Foundation of Mountain View, Calif. — parent of the Firefox browser — won for Open(Art), which will commission collaborations between artists and technologists to create and exhibit artwork on the Web.
“What a difference a year makes,” Patrick Butler, president of the Association of Public Television Stations, told the crowd at the group’s Public Media Summit on Feb. 27 in Arlington, Va. Last year at this time, the House of Representatives had just voted to eliminate all federal funding for public broadcasting. Since then pubcasters have notched several victories, including protecting the fiscal 2011 appropriation for CPB to $445 million. In recognition of Butler’s performance during his first year, the APTS Board of Trustees gave him an extended standing ovation.
When Gary Knell officially started work this month as NPR’s president, he probably found no shortage of ideas about what he should do with an organization that has recently survived bad headlines, turmoil at the top and a near-death experience with federal funding cuts. But he would be well advised to ignore some of those recommendations. Some say NPR should simply forgo federal funding, which accounts for 2 percent of its annual budget. Receiving even that small amount, they say, leaves NPR vulnerable to accusations of political bias in its news coverage. How much easier it would be, they argue, if public radio would give up the federal dollars and ignore the occasional outbreaks of criticism from Capitol Hill.
A drop in dues-paying members over the last three years has diminished the resources of the Association of Public Television Stations at an especially critical time for the Washington-based lobbying organization. APTS’ membership has fallen to 75 percent of public TV licensees from a high of 85 percent in 2008. With dues from fewer of the 170-some station licensees, APTS is short about $1 million in annual membership revenue and unable to fill several key positions, including vice presidents for government relations and communication and a regulatory counsel, in a year when the recession, anti-deficit worries and political opposition are bearing down on pubcasting funding. “This is a problem,” APTS President Patrick Butler said in a session at public TV’s National Educational Telecommunications Association Conference last month in Kansas City, Mo. “If we could get to a point where everybody was in this boat and supporting our efforts in Washington, it could have a transformative effect.”
Will Glasscock, an APTS director of government relations, cautioned that “the very challenging environment continues” on Capitol Hill and “the partisan atmosphere has never been quite this bad.” Just last week, GOP presidential hopeful Mitt Romney said in a USA Today op-ed that if elected, CPB will be one of his targets for “deep reductions in subsidies.”
The situation poses a dilemma: APTS needs resources to fight for federal appropriations on Capitol Hill, which has been one of the most stable sources of revenue during the recession despite the ongoing partisan fights over it.
The draft for the House Appropriations Committee’s fiscal year 2012 Labor, Health and Human Services and Education appropriations bill, introduced Sept. 29 by subcommittee Chair Denny Rehburg (R-Mont.), would prohibit CPB from funding NPR and requests a report from CPB on how to remove NPR totally from federal funding by 2014. Under the bill, CPB would receive the already-appropriated amount of $445 million for that year, including $6 million for digital projects. Other agencies in the draft bill would fare worse for the year that began Oct. 1.
After a nearly two-hour battle pitting fiscal conservatism against the value of publicly funded media, the U.S. House of Representatives approved a bill forbidding stations to use CPB funds to acquire NPR programming or pay network dues.