University licensee trims Arizona Public Media by $2M over five years

Arizona Public Media will lose $2 million in support from its university licensee over the next five years starting July 1. Over that time, the University of Arizona’s annual cash contribution to AZPM will fall 4 percent a year, from $2.6 million to $600,000. University leadership “is working with us to identify sources of new revenue,” General Manager Jack Gibson told Current. The university has weathered nearly $200 million in cuts since 2007 due to reduced state appropriations. Administrators “have turned up the heat wherever they could to recover working capital,” Gibson said.

NPR cancels ‘Tell Me More’, cuts 28 staff positions

A mandate for a balanced budget and a drive to reduce its production commitments spurred NPR to cancel Tell Me More, one of the few remaining broadcast shows outside of its newsmagazines that the network produces itself. NPR will end the production as of Aug. 1 as part of a broader newsroom restructuring announced May 20. Twenty-eight jobs in its newsroom and library will be cut; eight of the positions are currently unfilled. Tell Me More, a weekdaily program featuring host Michel Martin and focusing on news topics related to people of color, now airs on 136 stations.

Sponsor churn, ebb in digital cut into NPR’s bottom line

With one of its biggest corporate sponsors pulling back from a multiyear underwriting commitment, NPR has an uphill climb to rebuild its sponsorship revenues from 2011, when the network’s sales reps reeled in enough deals to set a new earnings record. High turnover — or “churn” — among its corporate clients, and the pullback of companies that spend the most money on advertising, cut into NPR’s bottom line in the fiscal year that just closed. After netting $2.4 million in profits in 2011, largely on robust sponsorship sales, the network aimed high for 2012. But sales fell far short of projections. For fiscal year 2012, which ended on Sept.

NPR budget for 2013 projects $5 million deficit

The 2013 budget approved by the NPR Board Sept. 14 projects a $5.1 million operating deficit, with expenses adding up to $185.5 million and revenues projected at $180.4 million. Management plans to cover the shortfall with working capital and operating reserves. The 2013 spending plan anticipates a 5 percent gain in sponsorship income, which fell far behind projections this year. NPR expects to close fiscal 2012, which ends Sept.

Engelhardt

Pacifica orders austerity cuts after grim auditors’ report

Responding to a June 15 auditors’ report expressing “substantial doubt” that the Pacifica Foundation has the financial wherewithal “to continue as a going concern,” Executive Director Arlene Engelhardt recently notified the five Pacifica radio stations to prepare for deep cuts in their budgets and staffing. The audit, which examined the foundation’s finances for fiscal year 2011, was the second consecutive report questioning Pacifica’s financial viability. Although Engelhardt disputed the auditors’ warnings — “We can always take to the air and raise money,” she said — she directed the stations to make cuts of at least $1 million from their collective budgets. The reductions were to be made immediately, but at Current’s deadline, decisions being made at local stations could not be confirmed. While Pacifica has made substantial progress in reducing its operating deficit from $2.7 million in fiscal 2009 to $564,000 in 2011, “we still have not made inroads on the debt,” Engelhardt said in a telephone interview.

Capacity: Radio’s local newsrooms weigh in

As the chorus calling on public media to add more local journalists grows, let’s be mindful of the specific ways adding journalists can dramatically improve local public service. Just by enlarging its newsroom to four, five or six journalists, a station will gain the human wherewithal to unleash a proper beat system. Beats cause reporters to become specialists. With a news staff of six, for example, a newsroom could have reporters well versed in the actors, history and nuances of a starter set of beats — education, health, business, law, environment and arts/culture. These specialists are more likely to break original stories, to know when it’s important to follow up, and to extract meaningful news analysis from a week’s events.

State aid down $85 million in four years

In four years that include the deepening recession, fiscal 2008 through 2012, public broadcasting stations in 24 states have lost a total of $85 million in financial support from state governments, according to a study released last week by Free Press, a progressive media-reform group. Those states reduced spending on public media by 42 percent of their 2008 amount. Free Press, which has joined the defense of federal and state aid to public media, gave the study a timely release date, one week before the congressional Super Committee’s Nov. 23 [2011] deadline to cut vast sums from the federal budget and deficit. “As federal lawmakers are considering making further cuts to public broadcasting nationally, we wanted to make sure they understood the full picture of public broadcasting in their states,” said Josh Stearns, co-author of the study and associate program director of Free Press.

To serve as a catalyst in making our cities work

When President Clinton had just taken office in 1993, Current asked an assortment of outside-the-Beltway people connected with public broadcasting to write open letters to him about the field’s public-service potential. One was Bob Larson, then president of Detroit’s public TV station, WTVS, and originator of the local City for Youth outreach project and the national Nitty Gritty City Group. Mr. President:

Your messages to the American people have reflected a fundamental commitment to reconciliation — bridge-building that both creates understanding and celebrates diversity. Please consider the potential of public broadcasting as a means of renewing community in our land. Already, at the beginning of your administration, the treasures of public television were evident in the Washington ceremonies: in the inaugural parade, characters from programs that have so passionately nurtured the minds and spirits of our children; and the magnificent presence of Maya Angelou, who recently graced the national PBS schedule (in “Maya Angelou: Rainbow in the Clouds”) to tell a story of healing in the city.

GAO statement on NPR financial crisis, 1984

NPR was shaken, President Frank Mankiewicz and other top managers toppled and some 60 staffers laid off in the network’s 1983 financial crisis. NPR, then largely dependent on federal aid through the Corporation for Public Broadcasting, had expanded activities to generate nonfederal money. But those efforts contributed to NPR’s near-collapse. The U.S. Government Accounting Office found that revenues lagged behind budget, expenditures exceeded budget and management lacked systems to monitor the situation, resulting in a $6.4 million deficit in fiscal year 1983. In this statement, Frederick D. Wolf, director of GAO’s Accounting and Financial Management Division, reviewed factors in NPR’s fiscal crisis and cutbacks that barely enabled it to break even at that point.