Cutbacks at NPR: Will The Economy Also Impact Local Affiliates?

[Mark Giardina]

http://www.variety.com/article/VR1117997170.html?categoryid=18&cs=1

http://www.current.org/2008/12/alt-weekly-chicago-public-radio-lays.html

http://current.org/npr/npr0823nprwest.html



We already have read where some commercial stations have made personnel cutbacks in order to balance their books. Now the question is will some public stations have to do the same thing?

In these trying economic times will supporters of public broadcasting continue to contribute money or not? How much money have these stations lost in the downward spiral of the stock market? These, and other issues will determine the fate of station personnel as budgets are being prepared for the next fiscal year.

 

[MikeSFNM]

From what I am reading at various public radio-tv websites, individual donors are continuing to send in their donations ("membership fees"), even increasing them. It's the corporate underwriting that has taken a big hit.

 

[Mark Giardina]

From what I am reading at various public radio-tv websites, individual donors are continuing to send in their donations ("membership fees"), even increasing them. It's the corporate underwriting that has taken a big hit.

It's the corporate underwriting that helps pay for many of the locally-produced programs.
If that funding dries up, along with a reduction in grants, then a number of public stations are going to find themselves in a dark hole when it comes to crunching the budget numbers.

Individual donations might be going up, but it is true that only one (1) out of ten (10)
viewers or listeners to local public stations bother to donate during pledge drives, or any other time.

The only way some of these stations are going to survive is to cut spending. Unfortunately that could mean the elimination of jobs.

I'm not trying to be an alarmist here, but just spelling out what could happen unless the economy improves. And from what the "experts" are saying, it doesn't appear things are going to get better until either the last quarter of 2009 or perhaps even 2010.

 

[Yeziknoradio]

I'm not trying to be an alarmist here, but just spelling out what could happen unless the economy improves. And from what the "experts" are saying, it doesn't appear things are going to get better until either the last quarter of 2009 or perhaps even 2010.

...and ofcorse by that time, it's too late.
This recession is far worse than the one in the early 90's.

I think NPR will be ok. Shoestring radio, (shoestring budget) but it will survive.

 

[listener-in]

As a member of my local station, I believe that it does a mostly excellent job, that the radio dial would be quite barren without it, and that it deserves to be supported. Maybe this is a bad time to suggest such a thing, but it would be nice if the station was more forthcoming about publishing its books. My church bulletin annually discloses much more to parishioners than members learn from the station's program guide - which isn't difficult, because I don't remember it ever seeing a balance sheet therein. It would be nice if once a year the station's accounts were summarized on its website and in print, so that members could learn a bit more than just the $$$ it costs to buy an hour of Morning Edition. How much goes to programs? How much goes to payroll (including executive pay)? How much is overhead? With money tight as is, I might be consider upping my subscription if I could see an occasional pie chart.

Other details aside, the myth that public radio still depends heavily on government funding dies hard; regular publication of the accounts would help dispel it and might draw in new members.

 

[Ed Trefzger]

How much goes to programs? How much goes to payroll (including executive pay)? How much is overhead? With money tight as is, I might be consider upping my subscription if I could see an occasional pie chart.

You can download IRS form 990 filed by WXXI by registering for free here: http://www.guidestar.org/ and searching for WXXI. The president and CEO's compensation on the most recent filing available was $345,664 with a payroll aside from him at $3.6 million. The top five on the payroll other than him are listed separately.

Other details aside, the myth that public radio still depends heavily on government funding dies hard; regular publication of the accounts would help dispel it and might draw in new members.

Take a look at line 1c of the filing.

 

[Red1]

www.wxxi.org/about/

WXXI's 990 tax forms and audited financial statements are linked from this page (way down at the bottom) . It takes some digging but some of the info is there. I would think other public stations would have the same.

 

[umtrr-author]

One of the cuts NPR announced was the ending of "News and Notes" by the end of March 2009.

WXXI-AM runs that show, so I think a soft metric of their financial health will be what is used to replace it, i.e. another NPR program not currently offered on 1370, something local, or a rebroadcast of something already being paid for.

 

[The Voice of Reason]

You can download IRS form 990 filed by WXXI by registering for free here: http://www.guidestar.org/ and searching for WXXI. The president and CEO's compensation on the most recent filing available was $345,664 with a payroll aside from him at $3.6 million. The top five on the payroll other than him are listed separately.

What WXXI's 990 forms does not show paints a different picture when it comes to salaries.
The CEO and president of this not-for-profit organization makes $345,664, which does not include the free SUV he's given every other two years, plus other perks the station pays for.
Then you have station's VP and General Manager who makes over $130,000 a year. (This doesn't count the salary her husband gets for hosting a morning drive radio show on WRUR). Then there are five other individuals listed whose total salaries combined is over $300,000.
What is not displayed in this 990 form are the salaries paid out to other executives, and middle management.
Should the station have to trim its budget because of a decline in grants and other outside funding, how many of you believe that the top wage earners will be on the list to lose their jobs? Instead the station will go after employees who are paid far less. To compensate these cutbacks, WXXI will also have to reduce its local programs on both radio and especially television.
As someone posted on here, individual donations might be on the rise, but other funding has been severely impacted by the recession.
One solution to this problem would be for WXXI's Board of Directors to take a serious look at how that operation is top heavy in management. Why, for example, does the station need a Vice President for Radio, plus program directors for 1370 AM, 91.5 FM and WRUR? Does WXXI really need a radio station in the rural community of Houghton?
It will be very interesting to see what happens in June 2009 when the station must decide how to balance it's budget. I can tell you that adding extra pledge drives won't be the answer.

 

[SirRoxalot]

Does WXXI really need a radio station in the rural community of Houghton?

Hey, the station is located at Houghton College, and likely doesn't cost them much to run. It does extend their reach into a significant portion of S/CNY, and is probably a money-making proposition.

 

[The Voice of Reason]

Maybe this is a bad time to suggest such a thing, but it would be nice if the station was more forthcoming about publishing its books. My church bulletin annually discloses much more to parishioners than members learn from the station's program guide - which isn't difficult, because I don't remember it ever seeing a balance sheet therein. It would be nice if once a year the station's accounts were summarized on its website and in print, so that members could learn a bit more than just the $$$ it costs to buy an hour of Morning Edition. How much goes to programs? How much goes to payroll (including executive pay)? How much is overhead? With money tight as is, I might be consider upping my subscription if I could see an occasional pie chart.

To the contrary it's not a bad time to suggest what you propose. I've always wondered why WXXI releases outdated information when it comes to their 990 form. One either has to really dig in order to find that information on their website, or they need an degree in accounting to figure out who makes what.
It's my theory that the station doesn't want the public to know just how much money is being paid out to a few executives, a subject that I've raised before only to be accused as being anti-public radio; which I am not. I just happen to believe that any organization that receives donations from the public and tax dollars needs to be more forthcoming with their bookeeping.

 

[aaronread]

One of the cuts NPR announced was the ending of "News and Notes" by the end of March 2009.

WXXI-AM runs that show, so I think a soft metric of their financial health will be what is used to replace it, i.e. another NPR program not currently offered on 1370, something local, or a rebroadcast of something already being paid for.

Don't read TOO much into that. Programming is expensive but it's not as expensive as salaries. And don't forget that they're paying for shows on their HD3 channel that could move over to HD2/WXXI-AM. Granted, I think the stuff on HD3 is often discounted, but not so much that it'd be all that meaningful to this discussion.

They may also just move up the repeat of 1370 Connection to be from 8-10pm, bump all the 11pm shows to 10pm, and start the BBC an hour earlier. I'm not going to pretend I know what's best for WXXI, but on the surface a move like that would make pretty good sense to me. Lots of fans of the BBC would appreciate it. Hell, they might even just put the BBC on for the hour that N&N was on...depending on what's the on the Beeb at that time, it might work quite well.

In WEOS's case, we are taking the opportunity to add an hour of On Point to our lineup, from 10-11am. We're small enough that the annual fee is quite affordable. World Cafe and Fresh Air will slide to 11am-1pm and 1-2pm, respectively. Overall, though...it's a real bummer. I mean, I like On Point and I've been planning on adding it to WEOS someday, after we got WITH on the air and could do On Point without losing World Cafe. But I also liked News & Notes, and it was one of the very few NPR shows that even tried to reach out to both white and non-white audiences, much less did it as well as N&N did. We did get routine compliments from listeners for airing N&N, too.

 

[Red1]

I've always wondered why WXXI releases outdated information when it comes to their 990 form.

It's got to do with the accounting cycle. FY'08 ended June 30; 990 Form would be due in October. I doubt that getting it posted to the website is a priority for the Director of Finance .

I, too, would like to see WXXI make "On Point" part of their schedule. Currently, I stream it over WBUR.

 

[aaronread]

Well, I'd prefer you listen to OnPoint on WEOS, but technically OnPoint is on WXXI - it airs live from 10a-12n on their HD3 multicast channel. You'll need an HD Radio to receive it, of course.

On that point, I'd just like to say "kudos" to WXXI for their deft scheduling of Marketplace between the HD2 and HD3 channels; 6-6:30pm on HD3, 6:30-7pm on HD2, and 7:30-8pm on HD3 again. It usually means I can catch Marketplace any time I'm driving home from work...except, of course, when I'm in Geneva proper. WXXI's too far away to get solid HD there...doesn't firm up until I get into Flint or so, driving down 5&20 towards Canandaigua.

 

[Element9]

The Connection was one of my favorite NPR distributed programs when it aired on WNED-AM years ago. It was a very well-produced, intriguiging program that I was sorry to see dicontinued through no fault of WNED-AM, a truly diverse radio station. I only wish the signal was better in East Aurora.

 

[aaronread]

Were you a fan of The Connection with Chris Lydon or Dick Gordon? Chris still does a podcast called "Radio Open Source", which had a fairly brief run on the radio as well but is still around (and fairly-regularly updating) in podcast-only form. Dick Gordon is hosting The Story down at WUNC and distributed nationally by American Public Media. I don't think anyone around western/central NY airs The Story, unless its on an HD multicast channel, but you can get it on the web I'd imagine.

 

[Element9]

Dick Gordon. Thanks for the update. Much obliged.

 

[The Voice of Reason]

Well, I'd prefer you listen to OnPoint on WEOS, but technically OnPoint is on WXXI - it airs live from 10a-12n on their HD3 multicast channel. You'll need an HD Radio to receive it, of course.

On that point, I'd just like to say "kudos" to WXXI for their deft scheduling of Marketplace between the HD2 and HD3 channels; 6-6:30pm on HD3, 6:30-7pm on HD2, and 7:30-8pm on HD3 again. It usually means I can catch Marketplace any time I'm driving home from work...except, of course, when I'm in Geneva proper. WXXI's too far away to get solid HD there...doesn't firm up until I get into Flint or so, driving down 5&20 towards Canandaigua.

Sorry but personally I'm not about to spend money on an HD radio just to hear one program from NPR.

IMHO HD radio is unnecessary, taking into consideration the expense, plus the fact that fewer people listen to the radio than they did 5 or 10 years ago.

With regards to Red 1's statement about WXXI's 990 forms being a year behind.
I understand what you are saying, but there have been times when WXXI posted tax information that is more than a year late. I still maintain the station does not want the general public to discover how much money is being paid out to a few individuals.

The public already is in an uproar over salaries and golden parachutes executives of corporations make who are now asking for taxpayer bailouts. Can you imagine the chagrin taxpayers and especially donors would have knowing how much of their donations goes towards the salaries of a few people rather than improving and adding local programming?

 

[Element9]

Sorry but personally I'm not about to spend money on an HD radio just to hear one program from NPR.

It's not likely that many other consumers have a need for HD.

Here are a few responses from an informal inquiry about HD amoung people I've spoken to at social gatherings, while shopping and getting my car repaired over the past few weeks. Admittedly, not a scientific sample because my questions about HD were varied and conversational in nature.

"What's that'?" F c. 38

"Who cares." M 25

"It sounds stupid." F c. 19

"I don't listen to radio." M 22 (the statement seems to be less than accurate, but that was his response.)

"I get new music from the Internet and put it on my iPod." M c.42

"Programming on radio stinks anyway, so why should I trust radio to give me something different?" M 29

"What, so they can play the same 50 songs over and over?" M c.35

"I've heard HD, but I can't hear any difference." F c. 50

Especially in a time of severe recession, food, clothing, utilities and mortgage payments will take priority over "buying an HD radio." There's a saying, "timing is everything" and it certainly applies to media and all facets of broadcasting with regard to HD and the seemingly wholesale changes that are being made in the business over the last three months .

NPR, like commerical broadcasting, faces many critical decisions and priorities. Perhaps these demanding times will force broadcasters to concentrate on improving or solidifying the product that occupies their main channels rather than being distracted by the mirage of HD and other distractions.

Unfortunately, what we've seen thus far is akin to treating stomach cancer by amputating the patient's left leg... "and if that doesn't cure the cancer, we'll cut off the right leg and hope that works."

Here's a suggestion for the Smulyans, Fields, Masons, Farids, RVPs and GMs in the world of radio: Show some leadership and significantly cut your salaries. Retain and hire talented, smart, creative programmers, news personnel, air talent and sales personnel.

The push for HD is one that is ill-conceived and ill-timed. HD is a product for which very few consumers find any real need. The tragedy is that an exorbitant amount of money has been poured into HD; money that could have been better spent on programming, REAL promotion, research for SALES and programming and retaining air talent.

The radio business better come to the realization that a "need for product" can't be contrived using smoke and mirrors. Improve the product on the main channel and invest wisely in strategies that promote and expand radio's main channel reach.

 

[The Voice of Reason]

Here's a suggestion for the Smulyans, Fields, Masons, Farids, RVPs and GMs in the world of radio: Show some leadership and significantly cut your salaries. Retain and hire talented, smart, creative programmers, news personnel, air talent and sales personnel.
The radio business better come to the realization that a "need for product" can't be contrived using smoke and mirrors. Improve the product on the main channel and invest wisely in strategies that promote and expand radio's main channel reach.

Excellent, thoughtful and creative suggestions; which are reasons why those in charge would never implement them. All these individuals care about is lining their own pockets.
So while they have millions stashed away in some off-shore account, or in a Swiss bank, their broadcasting properties can wither away and die because in the end these robber-barons will be fully compensated.