PBS will float 5% dues hikes, seek aid to continue PBS You channel

Originally published in Current, April 9, 2001
By Karen Everhart Bedford

A PBS budget proposal soon to be presented to stations requests 5 percent increases in both programming and member services dues for next fiscal year.

The PBS Board unanimously approved management's draft budget March 29 [2001], after a lively discussion of how to sell the spending plan to member stations. Budget goals are tied to a three-year strategic plan that PBS has kept under close wraps as management and the board refine it.

The budget ends operational funds for PBS You, a digital "lifelong learning" channel distributed on DBS and local feeds of 28 stations. PBS backed the channel's first two years of start-up, and now is seeking strategic alliances to continue the service in the next fiscal year.

"We are in active discussions on several strategic potential partnerships," said Jinny Goldstein, senior v.p. of education. Sealing a deal before money runs out in late June is "ambitious, but doable." PBS is considering a separate assessment to continue the channel if negotiations aren't completed in time.

Dues for the National Program Service would total $110.4 million if PBS adopts the increase endorsed by the board's Program Policy Committee. Member services dues go up to $26.6 million.

PBS program and member dues increases fluctuated between 2.6 and 7.5 percent in the past three budget cycles, with one rate moving up when the other moves down. Last year, stations had a 5 percent hike in dues for the National Program Service and 3 percent defor member services, according to Cindy Gertz, c.f.o.

Before the board's vote, Rob Gardiner, board vice chairman and president of Maine Public Broadcasting, warned that station executives will balk at the combined dues increases. Managers were expecting "something less than a 5 percent recommendation," he said. "Board members need to become very effective advocates for this, because there's a disconnect between the enthusiasm here and the station reaction."

"I'm not sure it's a hard sell," said Rod Bates, executive director of Nebraska ETV. PBS already addressed a projected 20 percent revenue shortfall by laying off 60 staff members last month. PBS pledges in its proposed three-year plan to keep its staffing at this reduced level.

Professional directors on the board agreed to co-sign a "dear colleague" letter to general managers, making the case for PBS's spending increases.

Goals for PBS's proposed 2002 budget are aligned with the "three guiding principles" of its new strategic plan, said Beth Wolfe, executive v.p. "Leveraging content to build social capital, creating value for member stations and providing universal access to local public television stations on all platforms."

"The success of PBS is going to be measured by the success of the system," she added. PBS pledges that station dues for 2002 will produce 5 percent increases in primetime ratings and membership revenues. "Our success is very much linked to local member stations' success. That's how we measure ourselves."

PBS is requesting flat funding from stations for the Station Independence Program, which develops pledge specials. PBS and station leaders will reexamine the "pledge and membership paradigm" at an upcoming summit, and "until we've done more of a review and study, it seemed premature to increase that assessment," said Wolfe.

 

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