The Corporation for Public Broadcasting: Federal Funding Facts and Status

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1 Order Code RS22168 Updted June 1, 2007 The Corportion for Public Brodcsting: Federl Funding Fcts nd Sttus Summry Glenn J. McLoughlin Specilist in Science nd Technology Policy Resources, Science nd Industry Division On Februry 15, 2007, Congress pssed the Revised Continuing Appropritions Resolution, 2007, which provides funding for federl progrms through September 30, 2007 (P.L ). Included in this legisltion is preservtion of $400 million in funding for the Corportion for Public Brodcsting (CPB) for FY2007. On Februry 5, 2007, President Bush relesed the Administrtion s FY2008 budget request. In this request, the Bush Administrtion hs requested $50 million recision in CPB s funding for FY2008 (t $350 million) nd n end to dvnced ppropritions for CPB. The CPB receives ll of its funding through federl ppropritions; overll, bout 15% of ll public television nd rdio brodcsting funding comes from the federl ppropritions tht CPB distributes. The CPB s pproprition is llocted through distribution formul estblished in its uthorizing legisltion. It hs historiclly received two-yer dvnced ppropritions. This report ddresses the components of federl support for public brodcsting, s well s briefly describing those issues fcing public television nd public rdio. This report will be updted s events wrrnt. Bckground The Corportion for Public Brodcsting (CPB) ws incorported s privte nonprofit corportion in the District of Columbi under the uthority of the Public Brodcsting Act of 1967 (P.L ). The CPB ws intended to provide funding mechnism for individul public brodcsting sttions, but not subject these sttions to politicl influence or fvoritism. CPB ws lso intended to provide funding mechnism for the cretion nd opertion of progrm distribution systems interconnecting the individul public brodcsting sttions. Therefore, the CPB receives n nnul pproprition, nd then uses this money to provide grnts to individul public television nd rdio brodcst entities, nd independent progrm producers nd distributors. The Public Brodcsting Service (PBS), Ntionl Public Rdio (NPR), nd Public Rdio Interntionl (PRI) sometimes receive direct grnts from CPB, but the vst mjority of

2 CRS-2 the pproprited money goes directly to individul locl public brodcsting sttions, including most of the member sttions nd ffilites of these ntionl orgniztions. The number of rdio nd television public brodcsting sttions supported by the CPB incresed from 270 in 1969 to pproximtely 1,100 s of August 2003, of which 356 re television sttions. Public brodcsting sttions re mostly run by universities, nonprofit community ssocitions, stte government gencies, nd locl school bords. Public brodcsting is regrded by mny s public service. To serve most Americns, public television reches pproximtely 99% of the popultion nd public rdio, 91%. With regrd to progrmming, the public brodcsting system observes the principle of locl utonomy. Tht is, public brodcsting sttions mke decisions independently of the CPB s to wht progrmming will be vilble to their viewing or listening udience s well s on their progrmming schedule. 1 The Corportion for Public Brodcsting The CPB serves s n umbrell orgniztion for public television nd rdio brodcsting. The CPB is nonprofit privte corportion nd is guided by 9-member bord of directors, of which the members re ppointed by the President with the dvice nd consent of the Sente. The directors serve for stggered six-yer terms. Although its cretion s privte nonprofit corportion ws motivted by the desire to eliminte politicl influence, it is required to mke reports to Congress nd submit to udits. The CPB s principl function is to receive nd distribute government contributions (or federl ppropritions) to fund ntionl progrms nd to support qulified public rdio nd television sttions bsed on legisltively mndted formuls. The bulk of these funds re to provide Community Service Grnts (or CSGs) to sttions tht meet specified eligibility criteri, including the mount of mtching funds they receive from non-federl sources. By lw, the CPB is uthorized to exercise minimum control of progrm content or other ctivities of locl sttions. The CPB is prohibited from owning or operting ny of the primry fcilities used in brodcsting. In ddition, it my not produce, disseminte, or schedule progrms. In November 2005, Kenneth Y. Tomlinson, Chirmn of the CPB Bord of Directors, resigned shortly before CPB Inspector Generl s report ws relesed, criticl of his use of CPB contrct money. The current president nd CEO of CPB is Ptrici S. Hrrison, ppointed by the bord in June Overll, 15.6% of ll public television nd rdio brodcsting funding comes from the federl ppropritions tht CPB distributes. However, mong individul public brodcsting sttions, the mount of federl dollrs tht contributes to sttion s nnul budget depends on whether it is television or rdio sttion, the funds it receives from non-federl sources, the number nd extent of brodcst trnsmitters required to service its coverge re, nd the extent sttion is serving rurl res nd minority udiences. 1 For dt on CPB, see [

3 CRS-3 Public Television: PBS The PBS ws creted by the CPB in 1969 to operte nd mnge ntionwide (now stellite) progrm distribution system interconnecting ll the locl public television sttions, nd providing distribution chnnel for ntionl progrms to those public television sttions. Although the PBS does not produce progrms for its members, it ggregtes funding for the cretion nd cquisition of progrms by nd for the sttions nd distributes them through its stellite progrm distribution system. The current president nd CEO of PBS is Mry Anne Alhdeff, who succeeded Pt Mitchell in Public Rdio: NPR nd PRI For rdio, different division of responsibilities ws estblished. The CPB creted NPR in 1970 s news-gthering, production, nd progrm-distribution compny governed by its member public rdio sttions. Unlike its public television counterprt, NPR is uthorized to produce rdio progrms for its members s well s to provide, cquire, nd distribute rdio progrmming through its stellite progrm distribution system, with regionl up-links vilble cross the ntion for public rdio sttions nd other producers to distribute their progrms. The public rdio stellite system is governed by elected representtives of the entire community of public rdio sttions, both those which re members of Ntionl Public Rdio, nd those which re not. Public Rdio Interntionl (PRI) ws creted by consortium of individul public rdio sttions to ct s nother distributor of public rdio content, in competition with Ntionl Public Rdio nd other existing distributors. Kevin Klose, former director of the U.S. Interntionl Brodcsting Bureu, the government s non-militry worldwide rdio nd television network, is president nd CEO of NPR. He ws ppointed by the NPR bord in Alis Miller is President nd CEO of PRI; she ws ppointed to both positions in Federl Funding Public brodcsting reported totl income of $2.3 billion in FY2003 (the most recent dt vilble). The federl contribution mde up 15.6% of the system s totl income. The remining 84.4% ws rised from non-federl sources (including individuls, businesses, foundtions, stte nd locl governments, nd eductionl institutions). The lrgest single income source (26% in FY2003) cme from membership. Neither PBS nor NPR receives grnts from the CPB for their generl opertions; only locl public brodcsting sttions receive these generlly-unrestricted funds directly. 2 The CPB received its first federl funding in FY1969 nd continued to receive nnul uthoriztions nd ppropritions until FY1975, when the Public Brodcsting Finncing Act of 1975 (P.L ) estblished uthoriztion for long-term finncing. The 1975 Act uthorized funding for public brodcsting over period of five yers. Advnced funding from Congress now sets ctul ppropritions two yers in dvnce of sttions receiving their funds from the CPB. The CPB ws lst reuthorized by Congress in 1992 (P.L ). 2 [

4 CRS-4 The CPB s pproprition is llocted through distribution formul estblished in its uthorizing legisltion. The uses of the CPB s funds re broken down into four ctegories: grnts to sttions; grnts for progrmming; system support; nd dministrtive opertions. Approximtely 89% of the funding the CPB receives from the federl government is required to be disbursed in the first two ctegories, either to public television nd rdio, brodcsting sttions, or to the producers nd distributors of public rdio nd television progrms. Of tht mount, bout 18% is llocted for grnts to progrm producers, nd bout 5% is llocted for grnts to public rdio sttions tht re restricted in use to production or cquisition of ntionl progrms. Almost two-thirds of the totl pproprition is llocted for lrgely unrestricted grnts to public television nd rdio brodcsting sttions. No more thn 5% of the totl pproprition my be used for CPB s dministrtive expenses. The remining percentge of funds is set side by the CPB for generl system-wide needs tht individul sttions would hve difficulty funding. A history of ppropritions to the CPB is presented in Figure 1 below; the more recent history of ppropritions is in Tble 1. Figure 1. CPB Federl Appropritions Trend Line FY ($ in millions) Source: Compiled by the Congressionl Reserch Service from the Corportion for Public Brodcsting nd The Budget of the U.S. Government, Fiscl Yer 2006.

5 Fiscl Yer CRS-5 Tble 1. CPB Federl Appropritions, FY2001-FY2009 ($ in millions) Administrtion Request House Allownce Sente Allownce Finl Approprition 2001 $340 $340 $340 $ $350 $340 $350 $ $365 $365 $365 $ $365 $395 $ $380 $395 $386.8 b 2006 $400 $400 $396 c 2007 $400 $400 $ $400 $400 $400 e 2009 d d d. The Bush Administrtion hs requested tht the two-yer dvnced ppropritions funding for CPB end, nd therefore hs not requested dvnced ppropritions since b. The FY2005 ppropritions included 0.80% rescission for ll federl ppropritions; CPB s originl dvnce pproprition ws $390 million. c. The FY2006 ppropritions includes 0.28% rescission for ll federl ppropritions. The originl pproprition for CPB in FY2006 ws $400 million. d. The continuing resolution for FY2007 ppropritions sustined the dvnced ppropritions for CPB t $400 million. e. The Bush Administrtion hs requested recision for CPB s FY2007 ppropritions, to $350 million. Congressionl Actions Congressionl policymkers provided $400 million in dvnced ppropritions for CPB in FY2008, nd retined the $400 million lredy pssed two yers go for CPB in FY2006 (P.L ). There ws, however, 1% rescission for ll federl funding put into plce for tht fiscl yer, resulting in n ppropritions level of $396 million. 3 For FY2007, Congress pssed continuing resolution tht sustins federl funding through September 30, 2006 (P.L ); CPB will receive $400 million. For its FY2007 budget request, the Bush Administrtion requested tht the dvnced federl ppropritions for FY2008 be mended to include rescission of $50 million, reducing the ppropritions to $350 million. The Administrtion lso sked tht dvnced ppropritions for CPB end in FY2009. Over the lst severl yers, the Bush Administrtion lso requested tht up some funding from CPB s encted ppropritions be mde vilble for digitl conversion grnts to public television brodcsters. Also, the Administrtion sked tht CPB funding 3 The ctul ppliction of this reduction to individul ccounts nd line items ws determined by the Office of Mngement nd Budget (OMB) nd the individul gencies. See lso CRS Report RL32952, Lbor, Helth nd Humn Services, nd Eduction: FY2007 Appropritions, by Pul M. Irwin.

6 CRS-6 be mde vilble in to upgrde nd complete the ntionl interconnection system, which is the ntionl distribution network of public brodcsting sttions. Film Controversy nd PBS A development tht hs ffected CPB indirectly nd PBS directly hs been public ttention to Public Brodcsting s support of the Sundnce Film Festivl. At the Jnury 2007 festivl, much medi ttention ws directed towrds severl controversil films, prticulrly Hound dog, strring 13-yer old ctress Dkot Fnning, who is ssulted in the movie. One group, the Americn Fmily Assocition (AFA), noted on its website tht these controversil films were being funded with PBS txpyer money 4. The AFA initited cmpign for its members to write to Members of Congress to protest PBS involvement t Sundnce. In response, PBS relesed informtion on its prticiption in the Sundnce Film Film Festivl. According to PBS, it prticiptes in this festivl becuse it considers it s one of the highest profile showcses of documentry films in the United Sttes. PBS contends tht it hs no control or influence over films the Sundnce Film Festivl ccepts. In 2007, PBS provided $40,000 to sponsor events t the Filmmker Lodge, venue for eductionl pnels on film mking, film distribution, nd other industry issues. PBS executives prticipted on pnels t the Filmmker Lodge to discuss film mking nd distribution of documentries nd to highlight PBS films nd film mkers ccepted t the festivl. No PBS sponsorship funds hve been used to support specific non-pbs film. In ddition, the PBS funds used t the festivl come from member sttion dues, not federlly pproprited money. 5 In My 2007, nother brodcsting controversy occurred when PBS decided not to ntionlly distribute documentry entitled Islm vs. Islmists: Voices From the Muslim Center. The 52 minute film contends tht, mong other issues, moderte Muslims re being intimidted by rdicl Islmists in severl Western ntions, including the United Stes. The film s producers climed tht PBS nd the sttion tht produced the film bowed to pressure from conservtive Americn Muslims by pressuring PBS not to distribute the film ntionlly. Eight Members of Congress reportedly responded by letter demnding tht CPB sk PBS to relese the film or find nother venue for distribution. In response, CPB relesed the film to Oregon Public Brodcsting, which will distribute it to other public brodcst sttions in the country. This will likely result in fewer sttions iring the film thn if otherwise distributed through PBS. Observers re concerned tht CPB hs contrdicted its originl mndte of 1967 to buffer public brodcsting nd its sttions from politicl pressure. 6 4 See [ According to its website: The Americn Fmily Assocition represents nd stnds for trditionl fmily vlues, focusing primrily on the influence of television nd other medi including pornogrphy on our society. 5 Communiction from PBS Public Affirs Office, Februry 9, As reported by Pul Frhi, Rejected by PBS, Film on Islm Revived by CPB, The Wshington Post, My 25, p. C1.