Pacifica Radio Board Adopts 2002 Fourth
Quarter Budget
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August 24, 2002
For Immediate Release
WASHINGTON, DC (Aug. 24) -- The Pacifica Radio interim national
board yesterday approved a fourth quarter budget for FY2002,
the first time in some two years that the five-station radio
network has formally adopted a budget.
Board Chair Leslie Cagan said: “The adoption of a budget
for the fourth quarter of the fiscal year is the result of
the tremendous work being done by staff at all five stations
and at our national office. We are now prepared to review
and act on the FY2003 budgets at our September board meeting.”
"While the approval of a fourth quarter budget is a
small step, it represents an important part of the process
of rebuilding the network’s finances," added Pacifica
Executive Director Dan Coughlin.
Pacifica Radio plunged into deep crisis following the 23-day
lock out of staff and community at Pacifica station KPFA in
Berkeley in the summer of 1999 and the "Christmas Coup"
at Pacifica station WBAI in New York in December 2000 which
led to mass firings.
A group of listeners, national board members, and local board
members filed a series of lawsuits charging malfeasance and
calling for a return to Pacifica's peace and social justice
mission. Coupled with a nationwide grassroots campaign, the
lawsuits led to a December 2001 settlement that changed the
network's leadership and set-up listener-member elections.
Those elections are expected to produce a new, permanent national
board by March 2003.
An independent financial review of Pacifica's books earlier
this revealed that network executives went on a spending spree
during the crisis. Between September 2000 and December 2001,
the network went from a $600,000 surplus to a working capital
deficit of some $5 million, a decline of $6 million in 15
months. Most of that was squandered on gold-plated law firms,
security companies, and golden parachute severance packages
that network executives handed to themselves.
At a conference call meeting on August 23, the interim Pacifica
National Board approved expenses of some $2.8 million, and
revenue of $1.9 million for the quarter ending Sept. 30, 2002.
The non-approved total FY02 budget projects $12.4 million
in expenses and some $11.6 million in revenue.
The FY01 financial statements revealed total revenue of $10.99
million and some $15.43 million in expenditures. The final
FY01 audit will be released next week and will be posted on
Pacifica’s web site [click
here for the audit]. The audited FY00 financials showed
$11.48 million in total revenue and $10.88 million in expenses.
The interim Pacifica National Board is expected to approve
a FY03 budget at is Sept.
20-22 board meeting in Houston. The last time the Pacifica
board approved a budget was in Fall 2000.
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