CPB

CPB budget allocation formula, 1981

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In 1981, Congress significantly restricted the Corporation for Public Broadcasting’s decision-making on spending, funneling fixed percentages of CPB’s federal appropriation to specific spending categories and types of grantees. Before then, CPB had faced repeated struggles, including a rift between TV and radio. In 1981, Congress imposed a formula proposed by Rep. Tim Wirth (D-Colo.), then chair of the House telecommunications subcommittee. The 75-25 split between TV and radio was based on experience. Robben Fleming, then president of CPB, complained that the formula “emasculates” CPB, and his successors periodically have objected to their loss of discretion over spending.

CPB

Did CPB reallocate money illegally to create the Future Funds?

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Under the spending formula imposed on CPB by Congress in 1981, does the corporation have the authority to spend some of the portion reserved for stations by selectively giving out Future Fund R&D grants? When CPB created the TV Future Fund in 1995, it took half of the money from the 6 percent of its appropriation that the formula allocates to “system support” (see yellow portion of graphic at right). There is no dispute about that. The dispute is about the half that CPB spent from the 73 percent of 75 percent of 89 percent (no kidding!) that is allocated to grants for stations (the pale blue portion at right). The latter is often called the CSG pool because the station grants are called Community Service Grants.

Public Media Policybase

CPB budget allocation formula,1981

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Congress  limited CPB’s  discretion in spending the federal appropriation. The corporation’s authorizing law imposes a budget allocation formula that divides the appropriation as indicated in the chart. Dividing CPB funds between TV and radio had been a repeated struggle until 1981, when Congress imposed a peace-making formula proposed by Rep. Tim Wirth (D-Colo.), chair of the House authorizing subcommittee. The 75-25 percentage split between TV and radio was based on experience, though with public radio’s later growth, it made radio stations  more dependent on private-sector fundraising than public TV is. Robben Fleming, then president of CPB, complained that the formula “emasculates” CPB, and his successors periodically have objected to the loss of discretion over spending.