Detailed FY 2018/2020 Request
CPB distributes its appropriation in accordance with a statutory formula outlined in the Public Broadcasting Act. Ninety-five percent of CPB's appropriation goes directly to content development, community services, and other local station and system needs. Only five percent is allocated to administrative costs—an exceptionally low overhead rate compared to other nonprofits. By statute, Community Service Grants (CSGs), which go directly to local public television and radio stations, make up 70 percent of CPB's entire appropriation. Stations have wide latitude to use CSG funds to serve local needs in a manner they choose, which often includes community outreach, program purchasing, and local content development.
Also by statute, the System Support category funds projects that benefit the entire public broadcasting community, while the Television Programming and Radio Programming funds support the development of national content.
If Congress makes no changes to CPB's authorizing legislation and fully funds our request for a $445 million advance appropriation for FY 2020, the statutory categories under the Public Broadcasting Act would be funded as follows:
Public Television Station and Programming Grants
Direct Station Grants (TV CSGs) — $222.8 million
By statute, stations use CSGs “for purposes related primarily to the production or acquisition of programming.” The size of each station's CSG depends on factors (determined by CPB through periodic system consultations) such as size of station, the amount of nonfederal financial support raised, the rurality of the audience served, and the number of stations in a given market. Under current CPB policy, stations can use CSGs for one of seven categories of expenses: Programming and Production; Broadcasting, Transmission and Distribution; Program Information and Promotion; Fundraising and Membership Development; Underwriting and Grant Solicitation; Management and General; and Purchase, Rehabilitation or Improvement of Capital Assets.
In FY2015, CSGs made up 18.3% percent of the average public television station's total revenue, with stations using this funding to leverage other critical investments from station and local governments, universities, businesses, foundations, and viewers. For many public television stations serving rural areas, this percentage is significantly higher. See Appendix G for a full listing of station funding by state, the vast majority of which is CSG funding.
National Television Programming Grants — $74.5 million
The Public Broadcasting Act requires a set percentage of the CPB appropriation to go toward “national public television programming.” CPB funds a broad array of national programs in support of the statutory mission to reach underserved audiences, fund independent producers, provide high-quality educational programming for children and adults, and other content-related activities. CPB anticipates that the following activities will receive Television Programming funding:
Public Radio Station and Programming Grants — $99.1 million
“Unrestricted” CSGs — $69.3 million
Like public television stations, eligible public radio stations also receive CSGs from CPB, though for radio, the CSG contains two types of funds: unrestricted and restricted. The unrestricted portion can be used for a variety of purposes, including local content development, community outreach, infrastructure maintenance, and other station needs.
“Restricted” CSGs — $22.8 million
Radio restricted CSGs are required by the Public Broadcasting Act “to be used for acquiring or producing [radio] programming that is to be distributed nationally and is designed to serve the needs of a national audience.” Broadly speaking, public radio stations use the restricted portion of their CSG to acquire programming from national producers such as NPR, Public Radio International, American Public Media, independent producers and other stations that produce national content.
Taken together, in FY2015, the latest year for which we have data, the average public radio station relied on both unrestricted and restricted grants for 9.1% percent of its annual revenue. However, for some stations, including those serving rural or Native American communities, the CSG provides the bulk of their funding. As with television CSGs, the size of each station's grant depends on factors such as population density of the market served, local need, and the amount of funds that stations can raise on their own.
Radio Program Fund — $7 million
As on the television side, the Public Broadcasting Act directs CPB to invest a small portion of the appropriation in nationally-distributed radio programming projects. The Radio Program Fund supports the development of new public radio services and series, the production of urgent or timely content, the work of independent radio producers, programming for underserved and unserved audiences, and the development of innovative content forms.
- CPB invests in increasing capacity at public radio and television stations to create original and enterprise journalism by supporting Regional Journalism Collaborations (RJCs) that establish reporting partnerships among multiple station newsrooms in a state or region. Each RJC is driven by a focused editorial strategy that is of common interest to the communities served by the RJCs and that results in more original and enterprise journalism and more “news of distinction” in identified topic areas. The objectives of the RJCs are to leverage public media’s network of local stations to provide stronger local news service to the public media audience and to increase the flow of locally produced content of national interest to the signature national programs
- CPB supports NPR News’s International Coverage, helping to defray the costs incurred by NPR’s 17 international bureaus as they cover news from around the world.
- StoryCorps is the groundbreaking public radio project that honors and celebrates American lives through listening. StoryCorps collects interviews from everyday Americans and edits them for national broadcast on public radio. The StoryCorps Military Voices Initiative is a major national project aimed at bridging the gap between the civilian population and the military community by recording, sharing, and preserving the stories of those individuals who serve and protect our county with their lives. All StoryCorps interviews are available online and are also archived at the American Folklife Center of the Library of Congress.
- Native America Calling and National Native News cover a wide spectrum of Native American and Alaska Native issues and ensure that Native voices are heard in our national discourse. The two programs enrich the diversity of American media by educating the public with cultural offerings, questions, and dialogue not found in commercial media programming.
- Undercurrents is a daily music service that provides an eclectic mix of Native, rock, folk, blues, world and reggae music to Native and non-Native listeners. Undercurrents is produced by Native owned RadioCamp LLC and is broadcast on 129 stations that include a growing number of Triple A stations.
- Project Catapult enhances public media’s content offerings by stations’ ability to produce local content for podcast distribution. Nashville Public Radio, WV Public Radio, St Louis Public Radio, WNIN (Evansville, IN), WYPR (Baltimore), KUOW (Seattle), and KALW (San Francisco) will explore diverse topics in seven new podcasts.
- The Urban Alternative is an innovative public radio music format developed to appeal to attract diverse, next generation listeners to public media. Pioneered by Chicago Public Radio, CPB will support the expansion of the new format to additional markets.
- “Strengthening Education Reporting” grants were provided to public radio stations in Dallas, TX, Washington, DC, Cleveland, OH, Durham, NC, Buffalo, NY, and Portland, OR to raise awareness about the education challenges in their communities. Content produced by these stations have been available online and on the American Graduate playlist on PRX.org in addition to local and national broadcasts.
System Support (or “Six Percent”) Funds — $26.7 million
The Public Broadcasting Act directs CPB to use six percent of the appropriation for “projects and activities that will enhance public broadcasting,”. Also known as “System Support,” these funds help to drive leadership among stations, innovation within the system, and collaboration across the system to help ensure effective and efficient programs and services. For example, in 2015, CPB used System Support funds to support its American Graduate initiative, helping stations help their communities to address the national high school dropout crisis. In addition, System Support funds help to offset certain infrastructure costs mentioned in the Public Broadcasting Act such as interconnection and music royalty costs.
While it is not possible to predict all System Support needs in FY2020, the following projects are likely to continue to receive funding:
- American Graduate: The American Graduate initiative, made possible by CPB, focuses on helping young people stay on the path to a high school diploma and continue on to college and career success. American Graduate was designed to connect the mission, depth, commitment and capacities of public media—its local stations and national organizations—to increase awareness, understanding, and access to solutions. Over 100 local stations have participated in this national effort to date, convening more than 1,800 partnerships with businesses, schools, faith-based and other nonprofit organizations and extending the reach of national broadcast content in their local public affairs programs.
- Music Copyright Fees: The Public Broadcasting Act says System Support funds “shall be available for expenses incurred by the Corporation for…the payment of programming royalties and other fees,” and CPB has traditionally paid all broadcast and internet music licensing fees on behalf of public television and radio as a service to the station community. If stations paid these fees individually, the overall cost would be much greater. However, CPB payment of these fees could change in the future as these costs have continued to rise at a much faster pace than CPB's appropriation.
- TV Interconnection Operating Grants: As directed by statute, CPB provides half of the cost of operating the interconnection system that PBS, regional distributors, local public television stations, and other entities will use to distribute programming material to public television stations nationwide.
- System Efficiency: One of CPB's primary leadership responsibilities is to further the long-term health and sustainability of the public media system and, as such, CPB will continue to pursue projects that are focused on maximizing the resources stations have available for service. These initiatives, with the goal of managing the costs of overhead and operations to provide more resources for the content that audiences care about, including facilitation of multi-station joint master control systems and cooperative back office operations; encouraging stations to come together through mergers and consolidations where appropriate; developing and implementing sustainable service models for regions served by economically-challenged stations that are the sole public television or radio providers to that community, and improving station fundraising efficiency.