dividing itself into two parts, the CPB has this advantage only to a limited but important extent. The budget for 1979, without any supplement, is approximately $120 million. The already authorized budget for 1980 is $152 million. This $32 million increase is significant and it does make it possible to make changes which would give the Program Unit a satisfactory start. Under the 1979 budget 90% of the total CPB appropriation is used for purposes of funding television and radio in the public sector. The actual 1979 budget split shows these figures: If one takes the 1980 budget with its additional $32 million over 1979, and if one applies exactly the same formula for division as was applied in 1979, the 1980 budget split would be: It is true that both the 1979 and 1980 CPB budgets, as summarized above, provide operational support in the form of Community Service Grants at a level of about 58% of the total CPB appropriation, although the authorizing legislation provides that less than 50% may be applied for Community Service Grants in 1979 and in 1980. Ultimately, at least 50% of the appropriation must, under the statute, go to Community Service Grants when the total appropriation reaches $160 million or more. This will occur first in 1981. If one wants to increase the share of CPB resources available for programming, the principal avenue nue available for doing so would be to reduce the Community Service Grants from the present 58% to the 50% called for in the statute. Any reduction in operational support from CPB may be difficult for the stations to accept. Fortunately, however, the 1980 budget alone would make possible an 8% increase in the present Community Service Grant level even if the aggregate level were to be reduced to 50%. Such an action by 1980 would produce an additional $13,692,000 for the Program Fund. When added to the $13,227,000 already budgeted for 1980 TV programming, and $6,973,000 already budgeted for radio programming, such a shift of Community Service Grant money would produce a grand total 1980 funding level for the Program Fund of $33,892,000. The adoption of a 50% Community Service Grant policy would provide still further increases in program funds in the future. Taking action as early as 1980 has the advantage of testing the principle of a separate Program Fund. Under this plan, the 1980 CPB budget for direct radio and TV support would break down, as follows: In addition to the above, there is approximately $8 million in undesignated CPB funds that were reserved within the 1980 CPB budget out of the original 90% budgeted for direct radio and TV support. These monies are being held for distribution later in the year and whatever is not used for other purposes could also be added to the new Program Fund. The potential that this change in Community Service Grant policy holds for further enlargement in the share of the CPB appropriation designated for programming is even greater in 1981 and beyond. For example, as early as 1981, the objective of Congress of reaching a 25% goal for CPB funding of programs could be attained. Moreover, even at a 50% rate, Community Service Grants would increase by 42% between 1979 and 1982. * To be available for both radio and TV programming. The adoption of a 50% Community Service Grant budget concept obviously represents a major change over past practice and therefore requires discussion with PBS, NPR and the stations. It does, however, have several advantages: 1. 2. 3. It moves immediately toward the Congressional and programming and does so without specific legislation or increases in overall CPB appropriations for 1980-1982. It complies with the Congressional mandate to pass through at least 50% of the CPB appropriation to the stations, and is achieved while still allowing increases in Community Service Grants from one year to the next. If a Program Fund of the type proposed is to be workable at all, it must have sufficient funding to give it a fair test. This plan offers such a test. If the members of the Board believe that it would be wise to explore the approach outlined in this memorandum, approval of the attached resolution would provide the necessary support for the management of CPB to proceed with discussions of it. Attachment WHEREAS, RESOLUTION The Board of Directors of the Corporation for Public Broadcasting has both read and discussed in public session the attached memorandum; and WHEREAS, The Board finds the proposal for structuring the Corporation for Public Broadcasting outlined therein desirable in principle; NOW, THEREFORE BE IT RESOLVED, THAT: The Board directs its management to discuss this |