Background
The economic crisis has had a profound effect on public broadcasting, with local public television and radio stations facing precipitous declines in every non-federal source of revenue over the past two years. In early 2009, the Association of Public Television Stations (APTS) and National Public Radio (NPR) surveyed their member stations (public television and radio stations, respectively) and projected a $307 million loss in non-federal revenue ($211 million television, $96 million radio) through Fiscal Year (FY) 2010. (As of January 2010, CPB estimates that the drop in non-federal revenue for public television and radio stations between FYs 2008 and 2009 alone to be $238 million – $200 million for television and $38 million for radio.)
In response to the urgency of the situation, working closely with PBS, NPR, APTS, and other organizations, the Corporation for Public Broadcasting (CPB) submitted requests (to the Office of Management and Budget in March 2009 and to Congress in May 2009) for $307 million in FY 2010 supplemental funding for stations. (See Corporation for Public Broadcasting Appropriation Request and Justification FY 2010 and FY 2012, pp. 11-17.)
In anticipation of the supplemental appropriation, and at the request of the CPB Board of Directors, CPB expeditiously consulted with the public broadcasting system about how to best distribute the funds.
Consultation Outcomes
On March 17, 2009, CPB convened a meeting with public broadcasting national representatives from PBS, NPR, APTS, the Station Resource Group and the Affinity Group Coalition, to discuss and come to consensus on the principles, goals and options for distributing the fiscal stabilization request. A second meeting followed on April 9, 2009 with station leaders from both television and radio to discuss and affirm the meeting outcomes. (See below for a list of meeting attendees.)
Both groups agreed on a set of principles to govern the distribution of funds, including:
- Funds to be distributed as quickly as possible;
- Split is proportional to ask (i.e. 2/3 for television and 1/3 for radio);
- All stations benefit;
- All funds unrestricted (i.e. same guidelines as station CSGs);
- Entirety of funds goes to stations (i.e. no administrative costs deducted); and
- Funds to be distributed in one payment.
Adhering to these principles, CPB management, with unanimous support of both consultation panels, developed a plan to distribute the supplemental funds based upon a multiplier of a station’s three-year average Community Service Grant (CSG). The multiplier is determined by the ratio of fiscal stabilization funds to the total of all stations’ three-year average CSG, and is calculated separately for television and radio.
The simple method of applying the same multiplier to all television and radio stations’ three-year average CSG, respectively, has several advantages for the distribution of funds, including:
- Allows for expeditious distribution to stations to meet their urgent needs;
- Most cost effective method/fewest “man-hours” for CPB to administer fund distribution;
- Guarantees that all current CSG formula factors are taken into account (e.g. rural and minority status); and
- Maintains its equitable distribution regardless of the size of the supplemental.
At both consultation sessions, and within CPB, alternative factors for distribution of fiscal stabilization funds were considered, including:
- Unemployment rates in station geographic area;
- Net revenue loss;
- Layoffs;
- Cuts to local service;
- Rurality/population density;
- Minority status; and
- Multiple transmitters.
During the sessions, the strong feeling of the group was that all stations were hurting and the need to get funds to the stations as soon as possible should be the most important priority. The group unanimously agreed that each of the alternative distribution methods would not meet that goal. Further, consultation members were skeptical that consensus could be reached within the system on the best alternative method to use at a time when all stations, big and small, are struggling financially.
On April 28, 2009, the CPB Board unanimously approved the proposed distribution plan (three-year CSG average, described above) for fiscal stabilization funding, and so CPB stood ready to distribute funds as soon as they were received from Congress.
Consultation Panel Members
National Organizations
Michael Jones, PBS
Barbara Landes, PBS
Dana Rehm, NPR
Michael Riksen, NPR
Lonna Thompson, APTS
Tom Thomas, Station Resource Group
Rob Shuman, Affinity Group Coalition
Carol Pierson, National Federation of Community Broadcasters
Station Leaders
Cephas Bowles, WBGO-FM, Newark, NJ
Malcolm Brett, Wisconsin Public Television
Janis Lane-Ewart, KFAI-FM, Minneapolis, MN
DeAnne Hamilton, WKAR-TV/FM, East Lansing, MI
David Lowe, KVIE-TV, Sacramento, CA
Allan Pizzato, Alabama Public Television
Flo Rogers, KNPR-FM, Las Vegas, NV
Wayne Roth, KUOW-FM, Seattle, WA
Brian Sickora, WSKG-TV/FM, Binghamton, NY
Stewart Vanderwilt, KUT-FM, Austin, TX
Congressional Action
On July 24, 2009, the House passed its version of the FY 2010 Labor, Health and Human Services, Education and Related Agencies Appropriations Act, with the Senate version advancing through the Senate Appropriations Committee shortly thereafter, both of which included CPB fiscal stabilization funding.
On December 8, 2009, the conference report for the Consolidated Appropriations Act of 2010 (House Report 111-366) was filed in the House, which included, among other things, $25 million for CPB for “fiscal stabilization grants to public radio and television stations, which have experienced a downturn in revenues due to the recession that has resulted in job losses and reductions to local programming and services.” In addition, the conference report included language providing that “fiscal stabilization grants shall be awarded to public radio and television licensees no later than 45 days after enactment of this Act based on the guidance outlined in House Report 111-220.” (With regard to fiscal stabilization funds, House Report 111-220 states “In March 2009, in consultation with public television and radio stations, the Corporation [for Public Broadcasting] developed a set of guidelines that would govern the distribution of any fiscal stabilization funds provided to public broadcasting stations. The Committee expects that the Corporation will utilize those guidelines in issuing such grants . . . Further, the Committee directs that no later than 180 days after the enactment of this Act, the Corporation shall submit a report to the Committee detailing how the funds were distributed.”)
The bill was passed by the House on December 10, the Senate on December 13, and was signed into law on December 16.
Final CPB Action
Staff members from various CPB departments, including Radio, Office of Budget and Finance, Media Strategies, System Development/Station Grants Administration and Office of General Counsel, met on December 16 to make final decisions on grant calculations, based on the final appropriated amount. Decisions related to calculations included using 2007, 2008 and 2009 for three-year average and using as much data as was available for newly CPB-qualified radio grantees.