CapRadio to end management of NSPR, KHSU

Two public radio stations in Northern California will return to local operations under a transition plan approved by Sacramento-based CapRadio.  

North State Public Radio in Chico and KHSU in Arcata, each licensed to different universities, are operating in the red under the current management agreements, according to Christopher Bruno, chief marketing and revenue officer for CapRadio. 

A budget approved unanimously by CapRadio’s board July 2 laid out a four-month transition timeline for the stations, Bruno said.

Chico State Enterprises, an auxiliary organization of California State University, Chico, is the licensee for NSPR. Cal Poly Humboldt is the licensee for KHSU. 

CapRadio Interim GM Frank Maranzino first informed staff of deliberations over the stations’ management in a June 18 email. 

“All parties are committed to building a strong, sustainable future for local public media so that the stations remain trusted and reliable news sources for their Northern California communities,” Maranzino said. “We will ensure broadcasting continuity throughout the process.”

Former CapRadio GM Jun Reina signed the agreement for NSPR in 2020 and for KHSU in 2021, documents provided by CapRadio show.  

“Financial projections show CapRadio operating with a healthy net gain primarily attributed to nearly $11M in funding from member contributions and business sponsors, while NSPR and KHSU are currently operating at a notable net loss,” Bruno told Current in an email. “After an in-depth review of the revenues, expenses and operations of CapRadio, NSPR and KHSU, it was determined that this was the best solution to preserve local public media throughout the region and enable all three stations to continue serving their communities from sustainable positions.”

‘Best path forward’

Under the management agreements, CapRadio covers the costs of staffing, accounting, business administration, NPR and content licensing fees, tower rents and maintenance, office rent and utilities for NSPR and KHSU, Bruno said. 

CapRadio staff maintain 18 broadcast towers associated with NSPR and KHSU, he added. 

The management agreement provided payments of nearly $1 million annually to CapRadio from the universities and CPB, but that compensation ended after three years, Bruno said. 

“CapRadio is no longer receiving CPB funding or supplemental funding from the universities to support NSPR and KHSU,” Bruno said. 

NSPR employs 12 people who are on CapRadio’s payroll, Bruno said. Most of the positions are anchors, producers, local show hosts, editors and reporters. 

Chico State is “thrilled to bring NSPR home,” said Ashley Gebb, executive director of university communications. The university will provide more details about its transition plan in the coming weeks.

“We have every confidence this is the best path forward to ensure it can remain a trusted, reliable source of local journalism for the thousands of North State listeners it serves,” Gebb said in an email.  

A spokesperson for Cal Poly Humboldt said the transition will not affect local programming. KHSU’s two employees will remain on staff. 

Both staffers are already on Cal Poly Humboldt’s payroll, but CapRadio reimburses the university for those costs, Bruno said. 

“We are all committed to building a strong, sustainable future for local public media so that the stations remain trusted and reliable news sources for our Northern California and North Coast communities,” a joint statement from Cal Poly Humboldt and Chico State provided to Current by Cal Poly Humboldt said. 

‘Inspiring turnaround’

CapRadio has been working its way out of financial challenges that included layoffs in 2023. It has published details about that turnaround on its website, including 9% membership support growth in FY24.

CapRadio’s financial statement for the year ending June 30, 2024 shows total revenue and support of about $14.7 million compared to expenditures of $14.2 million. 

But in the year ending June 30, 2023, CapRadio had about $16.9 million in revenues and support compared to more than $24.9 million in expenditures, its financial statement shows.

“With the support of the community, CapRadio orchestrated an inspiring turnaround over the past 18 months that included streamlining operations, stabilizing finances, improving and expanding audience services and significantly growing listenership and engagement,” Bruno said. “CapRadio is completely funded by the community and continues to pioneer a new approach to sustainability and growth that does not rely on any federal or state funding.” 

Looking ahead, Bruno shared a chart with Current showing projected membership revenue for CapRadio of $8.5 million for the upcoming fiscal year. For NSPR the projection was $500,000; for KHSU, it was $10,000. 

CapRadio also expects to bring in $2.2 million from sponsorships compared to $125,000 projected for NSPR and $20,000 for KHSU, according to Bruno. 

CapRadio intends to continue collaborating with both stations and offer digital content and its daily state government and politics broadcast through its CapRadio Network program, Bruno said. 

“This transition will put CapRadio, NSPR and KHSU in a position to preserve the future of local public radio broadcasting for their respective markets, offering increased flexibility to operate sustainability and new opportunities to serve their communities with essential news and cultural programming,” Bruno said.