Funding picture fuzzy for public TV

Not James Taylor, not Peter, Paul and Mary, not even angelic Irish singers - none of these venerable pledge-drive crowd-pleasers seems to be enough to shield public broadcasting from today's convulsing economy.

Stations across the country are finding fewer dollars in their tote bags as governments trim costs, corporations and foundations pull back on sponsoring programs or give one-time gifts, and individuals examine which expenses they'll shed.

The biggest blow to stations in the Philadelphia region may come from Harrisburg, where Gov. Rendell recently proposed eliminating all state funding in the 2009-2010 fiscal year for the Pennsylvania Public Television Network.

That move, which must be approved by the General Assembly, would hurt all stations. The region's most prominent public broadcaster, WHYY, might take a $1 million-plus hit, but it says it otherwise has met its recent fund-raising goals.

The state cut could be lethal to a smaller Philadelphia outlet, however. "We may not be able to continue," said Howard Blumenthal, chief executive officer of MiND: Media Independence, formerly WYBE-TV (Channel 35).

In the past, loss of one funding source might have been offset by an increase from another. These days, though, all revenue streams are contracting, as unemployment grows and stock portfolios fade.

Membership is flat or down nationwide for TV and radio stations, according to the Corporation for Public Broadcasting (CPB). Program underwriting has dropped, particularly from companies in the financial, automotive, insurance and real estate sectors.

A January presentation to the CPB board projected a drop of 16 percent, or $292 million, in public TV revenue for the 2009 fiscal year. Public radio could see a decline of 13 percent, or $126 million.

"We're not immune to the environment we're all in," said Bruce Theriault, CPB's senior vice president of radio. "We're not going out of business, but [TV and radio broadcasters] are having to make some adjustments."

In December, National Public Radio laid off 64 employees and canceled two programs. Boston's WGBH announced it was cutting 12 positions, freezing hiring and management salaries, and delaying capital purchases.

This month, Northern California Public Broadcasting said it was laying off or buying out 30 staffers and slicing 13 percent from its budget.

In this area, public radio and TV stations have not had to take such drastic measures - yet.

"We've had a reasonably good year so far," said William J. Marrazzo, president of WHYY-FM (90.9) and WHYY-TV (Channel 12), who projects another surplus this year.

The radio station's winter fund-raiser fell short at its scheduled end this month, but it exceeded its goal of $600,000 a couple of days later, Marrazzo said.

Membership revenue is up as fund-raising costs keep going down, he said, but corporate giving is dropping and foundations are indicating that next year could mean less money from them.

In its December TV on-air fund-raiser, WHYY exceeded the number of individual members it sought, going 68 beyond its goal of 6,000, the station said. It fell short of its dollar-amount goal of about $1 million, raising $801,000. That means more people pledged smaller amounts of money.

One of WHYY's most controversial expenses has been Marrazzo's compensation. His pay, benefits and expenses totaled $740,090 in the year ending June 30, 2007, the most recent tax filing to be made public. That package included $280,000 in deferred compensation he is scheduled to get this year if he meets performance goals.

Marrazzo said a cut in his compensation would be on the table if the station had economic troubles.

If the General Assembly does not give back what Rendell proposes to take away, Pennsylvania Public Television Network stations could lose a total of $8.5 million.

"Clearly, funding public broadcasting - no matter how valuable its services are - can't be a priority in this economic climate," Rendell spokesman Chuck Arno said.

Blumenthal said MiND, which gets about 35 percent of its $2 million budget from the state, has cut costs dramatically during its last few years of restructuring.

MiND no longer is part of the nationwide Public Broadcasting Service. Two-thirds of its programming is made up of five-minute shows that are bought or come from the community. Programs are transmitted via computer software, Blumenthal said, and the station's staff numbers fewer than 20.

"We have operated tighter and tighter, but there's a breaking point," he said.

Patricia Simon, president of the Lehigh Valley's WLVT public television, said the station projected a $200,000 deficit out of a $6.2 million budget. Corporate support passed its $131,000 goal by $6,000, but pledges were $117,254 below a $745,000 goal.

The proposed state cut would cost WLVT $965,000, Simon said. Hiring and salaries have been frozen, and more savings are being sought.

At New Jersey's NJN, "we're struggling, we're challenged," marketing director JoAnne Ruscio said. "Corporate giving is down; so is individual giving at the basic level."

The network, with a $16.8 million budget, has made cuts and is not filling vacancies. Ronnie Weyl, acting chief operating officer, said forecasts showed a year-end deficit.

It took two days longer than the usual seven-day pledge drive for WXPN-FM (88.5) to reach its $600,000 goal, though the station earned about $140,000 more than in its 2008 winter drive, general manager Roger LaMay said. "We're off more than 25 or 30 percent on the corporate-support side. We really took the attitude we have to stay on target with membership."

To do that, WXPN offered a $35 membership rate (a $15 discount) during the last couple of pledge drives. "People come out of the woodwork as soon as we do that," he said.

Still, LaMay estimated that overall revenue for the station would be off by $500,000 in its $8 million budget this year.

Temple University's WRTI-FM (90.1) is happy with where it is this year, even as it adheres to a university-wide hiring and salary freeze and delays capital projects.

"This was the best year we've had in the time I've been here, 12 years," general manager Dave Conant said.

The last on-air fund-raiser - the station gets about 60 percent of its funding from members - started with an iPod giveaway, "which got people interested immediately," Conant said.

The station, which plays classical music and jazz, urged listeners to "give at any level - $25, $30, $40," he said. "And people gave at $60."