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State funding cuts a setback for public stations

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Indiana’s public television and radio stations are again facing reductions in staff and programming following a decision by Gov. Mitch Daniels to make major cuts in state funding for the second year in a row.

Because of Indiana’s budget crisis, the state’s eight public television and radio stations, including WFYI in Indianapolis, will not receive their final two installments of public funding for fiscal 2010. That's about $1.6 million, or half of the expected $3.2 million annual total.

State revenue has fallen below projections for several months. It plunged $142 million below expectations in January, prompting Daniels to make numerous cuts, including halting funding to public broadcasters for the remaining six months of the fiscal year, which ends June 30.

"The state's revenues have continued to decline and more spending reductions are being made across state government," the governor's spokeswoman, Jane Jankowski, said in an e-mail. "All areas of state government have been impacted, and regrettably, that includes public broadcasting.

Jankowski said funding could be restored if revenues begin to rebound.

At least one public broadcaster, WNIT in Elkhart, already has reacted by cutting staff. The station let go eight employees on Tuesday, due to its $200,000 loss in state appropriations.

Other stations already had cut staff or programming and were anticipating less money after experiencing a 33-percent cut in state funds last year. The governor halted nearly $1.2 million in funding in the second half of fiscal 2009.

WFYI, a TV and radio broadcaster, underwent a radical restructuring in January 2009 by eliminating 10 positions, or 12 percent of the staff, and implementing a 5-percent cut in pay for management.

The station also discontinued contributions to a staff retirement program, adjusted its health care benefits and suspended some local programming, such as the "Across Indiana" program.

“That helps us better manage the situation now,” WFYI President and CEO Lloyd Wright said. “But the impact is felt by a staff that is spread very thin.”

All told, WFYI sliced its annual budget by $700,000 after it received $180,000 in state funding cuts last year. The station lost another $238,000 in fiscal 2010, for a total $418,000 the past two years. WFYI’s annual budget is about $9.2 million, of which state funding had accounted for about 5 percent.

In addition, corporate contributions are down. To compensate, WFYI hopes to increase revenue in other areas. Providing more studio services, particularly video production for corporations, is among the areas it is exploring.

Rent the station collects in its new building also should help. WFYI moved into the former Indiana Energy headquarters at 1630 N. Meridian St. in May 2008. The broadcaster bought the building for $8.5 million and spent another $11.6 million renovating the first two floors and equipping its radio and television stations. It’s renting out the third and fourth floors.

WFYI receives much of its funding from individual contributions, which account for about 35 percent of its budget. Corporate donations total about 28 percent, followed by federal funding at 13 percent and state funding at 5 percent. Non-broadcast revenue makes up another 5 percent of the budget, with the remainder coming from private and public grants.

“We hope these [state] cuts are temporary,” Wright said, “but they do hurt.”

WIPB in Muncie is feeling the pain as well. But like WFYI, it began paring staff last year to endure the first round of state cuts. The broadcaster cut five positions in the first half of 2009.

Anticipating similar funding cuts from the state this year, it did not even include the state appropriation in its 2010 budget. The $85,000 WIPB received, or half of the $170,000 that it was due, was placed in a savings account.

“Obviously, it’s a big hit, but we do not expect any further layoffs,” WIPB General Manger Alice Cheney said. “We just continue to explore other revenue streams.”
 
Indiana is not the only state to target public broadcasting funds to lessen the sting of the recession. More than 20 states have reduced funding or are considering it, said Larry Sidman, president of the Association of Public Television Stations in Arlington, Va.

But Indiana’s cuts seem to be among the worst, he said.

“They are deeper and more severe than most of the states,” Sidman said. “This 50-percent hit all at once is going to have a very harmful impact.”
 

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  • True Journalism
    Local media is in real trouble.

    The Indianapolis Star has laid off most of its reporters while local coverage is reduced to a daily tabloid brochure under Gannett ownership.

    I remember when WFBQ's Bob and Tom Show actually talked about going to local events/places and spoke with people around town. Now they have taken that all out to appeal to the syndicated audience in California, New York, and Texas.

    I also remember when the news was about facts, and reporters took the time to explain complex issues and different points of view instead of giving over simplified opinions and endlessly trying to sell me something.

    PBS is one of the few places they remember how it should be done.
  • It still costs money...
    The local stations still have to pay for network programming.
    In the over-the-air broadcasting model it still costs money to operate the transmitter and other equipment even without producing local programming.
    With satellite and internet, it may be time to re-examine the broadcast model.
  • Local Not Global
    Perhaps you should take a more critical look at how the national TV networks, radio, and cable have little if any local programming or staffing.

    WFYI has both.

    I value and trust the LOCAL community, political,& business news on this local PBS station much more than generic national dribble from Fox, MSNBC, CBS, and CNN.

    We all should celebrate and support the IBJ and PBS much more.
  • bummer
    90% of the time, they simply take the network feed from PBS. Tell me again why they need this big of a budget...could it be...because the gov't gave them load of cash?

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  1. Aaron is my fav!

  2. Let's see... $25M construction cost, they get $7.5M back from federal taxpayers, they're exempt from business property tax and use tax so that's about $2.5M PER YEAR they don't have to pay, permitting fees are cut in half for such projects, IPL will give them $4K under an incentive program, and under IPL's VFIT they'll be selling the power to IPL at 20 cents / kwh, nearly triple what a gas plant gets, about $6M / year for the 150-acre combined farms, and all of which is passed on to IPL customers. No jobs will be created either other than an handful of installers for a few weeks. Now here's the fun part...the panels (from CHINA) only cost about $5M on Alibaba, so where's the rest of the $25M going? Are they marking up the price to drive up the federal rebate? Indy Airport Solar Partners II LLC is owned by local firms Johnson-Melloh Solutions and Telemon Corp. They'll gross $6M / year in triple-rate power revenue, get another $12M next year from taxpayers for this new farm, on top of the $12M they got from taxpayers this year for the first farm, and have only laid out about $10-12M in materials plus installation labor for both farms combined, and $500K / year in annual land lease for both farms (est.). Over 15 years, that's over $70M net profit on a $12M investment, all from our wallets. What a boondoggle. It's time to wise up and give Thorium Energy your serious consideration. See http://energyfromthorium.com to learn more.

  3. Markus, I don't think a $2 Billion dollar surplus qualifies as saying we are out of money. Privatization does work. The government should only do what private industry can't or won't. What is proven is that any time the government tries to do something it costs more, comes in late and usually is lower quality.

  4. Some of the licenses that were added during Daniels' administration, such as requiring waiter/waitresses to be licensed to serve alcohol, are simply a way to generate revenue. At $35/server every 3 years, the state is generating millions of dollars on the backs of people who really need/want to work.

  5. I always giggle when I read comments from people complaining that a market is "too saturated" with one thing or another. What does that even mean? If someone is able to open and sustain a new business, whether you think there is room enough for them or not, more power to them. Personally, I love visiting as many of the new local breweries as possible. You do realize that most of these establishments include a dining component and therefore are pretty similar to restaurants, right? When was the last time I heard someone say "You know, I think we have too many locally owned restaurants"? Um, never...

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