System/Policy
CPB report to Capitol Hill countering “continued and pervasive” opposition to federal funding
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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.