Home > News
> ED Report
Executive Director Report to the Pacifica
National Board
September 19, 2003
New York City
I'd like to give everybody a snapshot of what has been happening
at the national level and to share with you some of the priorities
that I believe are critical for us to work on collectively
over the next period of time.
Before I do that, I just want to take a moment to reflect
on the big picture, the historic conjuncture within which
we are operating as a media organization, and as an organization
with a clear peace and social justice mission. As we all have
been witnessing this past 18 months, Pacifica is operating
in a radically new political and media environment, one that
offers I believe an historic opportunity for Pacifica
and independent media as a whole. Simply put, there is a media
revolution underway, both politically and technologically.
What are the characteristics of this transformation?
1) The unprecedented nationwide grassroots mobilization
against media consolidation.
2) The vast opposition to Iraq war, the Patriot act and
other policies coming out of Washington.
3) The breakdown of traditional media gatekeepers. So, all
of a sudden, books by Greg Palast and Michael Moore, which
years ago may have languished, are now best sellers.
4) The sharp increase in revenue at Pacifica, jumping from
$10.98 million in $15.3 million, a 40 percent leap in just
eighteen months.
5) The growth in the number of radio and in the case
of Democracy Now! television stations that are taking
Pacifica-related programming including Free Speech Radio News.
Today, more than 100 radio stations nationwide and some 70
TV stations are carrying Pacifica programming, the most in
Pacifica's history. This, by the way, is all demand driven,
not as a result of a multi-million dollar marketing effort.
And as we heard from Ursula, there is actually enthusiasm
to affiliate with Pacifica.
6) The impact of advanced technologies, the development
of so-called viral marketing, and the dramatic increase in
the Internet as a key source of information and mass mobilization:
Moveon.org,
truemajority.org,
common dreams,
blogs.
7) The growth of bandwidth and easier audio and video streaming,
and P2P file sharing, is restructuring the entire economy
and, of course, millions of lives. Today, some 20 million
US households have high-speed Internet access, that's
half of all Internet accessible households.
This means, of course, that for Pacifica, the timing and
the urgency of our mission, of our programming, has never
been greater. We are in the midst of a historic opening for
independent, progressive media and a real opportunity to establish
Pacifica as the No. 1 source of independent news and information
in the country. This includes distributing programming through
audio streaming, satellite radio, community radio nationwide,
print media, the web, and television.
But as we envision this future, and as we turn the corner
from old bylaws to new, from debt to solvency, from a radio
broadcaster to a multi-media organization, we must remain
mindful of the concrete, day-to-day work of the Pacifica Foundation.
Our two top priorities this next year remain No. 1 network
finances and No. 2 elections. I won't get into the elections
today since it will be coming up all weekend. But I do want
to take the opportunity to introduce the new national elections
supervisor, Terry Bouricius. To get more information on the
elections process, please check out the
Pacific web site.
On the financial front, the entire Pacifica Radio network
has made tremendous gains this last 18 months. According to
the latest audit, Pacifica posted a five million dollar turnaround
last year and most of that came between January and September
2002 a nine month span. That's a remarkable achievement.
We set that goal collectively, as a network, to stem the financial
crisis and we have accomplished that Herculean task emphatically.
Bravo and many thanks to all the LABs, to the national board,
to the listener groups, and community activists for all their
hard work in helping us to reach those goals.
But, friends, let me acknowledge for a moment the special
contribution of one unsung sector of the Pacifica community
the experienced, knowledgeable, and dedicated staff
at all our stations who spearheaded the fundraising efforts.
They've done a tremendous job and this network would
be lost without them.
Let me also acknowledge the archives and the local station
leadership, the GMs, the PDs, the Development Directors, and
the Business Manager's around the system. They have responded
to the challenge posed by the debt mountain. Many thanks for
accepting that challenge and help turning that mountain into
a molehill.
But a warning: the network remains very fragile. We have
outstanding debt that still needs to be dealt with and existing
vulnerabilities, like our physical plant, our cash reserves,
and potentially more aggressive political challenges ahead
as Pacifica renews its peace and social justice commitment.
Further, we are not anticipating the kind of growth that we've
had over the last few years in the years ahead. In fact, we're
projecting fewer revenues next year.
As you will hear from CFO Lonnie Hicks, revenues are projected
to fall 700k compared to this fiscal. Pacifica's total
wage bill continues to be an issue with salaries and benefits
increasing 10-12 percent per year. Expenses as a whole are,
in fact, increasing quicker than revenues. BIG, BIG PROBLEM
FOLKS. LET ME REPEAT, expenses are increasing faster than
revenues. In addition, we have stark capital needs, highlighted
by the recent power outages in New York and DC that left Pacifica
station WBAI 99.5 FM and WPFW 89.3 FM in Washington DC off
the air for two days. The reason we don't have back-up
power is simple: cost. While it appears that we can take care
of the WPFW problem for a reasonable amount, and you'll
hear more about that from WPFW GM Ron Pinchback, WBAI is a
different story. To get a back up transmitter at 4 Times Square
or in New Jersey will cost minimum of 7,500 to 10,000 a month
in rent alone.
Apart from the network capital needs, Pacifica's financial
picture is made all the more cloudy by the remaining debt
problems, our difficulties in settling outstanding litigation
related to the Pacifica crisis of two years ago, the very
real potential of new legal bills, and unbudgeted expenses
continually cropping up.
In short, we must remain fiscally disciplined. This is our
No. 1 priority next year. We cannot allow ourselves to reverse
any of our hard won gains.
BTW, for anyone who wants to see up-to-date financial information
on Pacifica go to the Pacifica web site and all our accounts
and audits are up there. Right up to the end of July. These
are the very same reports that I get, and that the national
board gets. And as part of the March iPNB resolution, monthly
financials will be posted to the web site. This is part of
our collective effort to ensure transparency and community
accountability. We are serious about accounting for every
dime of listener support, whether as I heard from the
floor yesterday -- it's a pier party or a consultancy
contract. And we are serious about performing our financial
oversight functions and ensuring the fiscal integrity of the
stations and the network. We have come too far from the days
of massive squandering of listener funds to fall back into
that nightmare. We won't let it happen.
Indeed, getting back to the FY04 budget, after discussion
with the CFO, Pacifica's auditor, and the iPNB Treasurer,
I am recommending that the iPNB provisionally approve the
budget for fiscal FY04 provided that each unit generates a
cash surplus equal to one month's operating expenses.
This is a recommendation, as you will hear later, from the
CFO as well as Pacifica's auditor, one that goes back
to his February 2002 management letter. The CFO and I are
recommending that each station has 45 days to revise existing
budgets to conform to the cash requirements and then we will
re-submit those budgets to the board for approval by conference
call in 45 days. The CFO will discuss this point further.
The CFO and I are also recommending to the National Board
this weekend the reaffirmation of the policy that no proposal
or idea can be approved without a fiscal impact statement
attached along with a detailed budget with revenue sources
clearly identified.
And, further, we are also asking that the iPNB reaffirm
that the Executive Director and the CFO have the authority
to refuse payments on unauthorized expenditures. The CFO will
be discussing this in his report.
While recognizing the need to remain fiscally disciplined,
I do want to point out, however, that we are working hard
developing new revenue sources around the network, including
cultivating major donors, strengthening network-wide Internet
revenues, and creating endowment funds. National Development
Director Pilar Gonzales will be briefing you on those joint
national office-local station efforts, which are designed
to raise funds for unbudgeted but critical items, like National
Programming, the First Voice Training Program, and the on-going
Digitization project.
As this financial picture reminds all of us, Pacifica is
in the midst of a rebuilding mode establishing financial
stability, adopting prudent fiscal policies, struggling to
get new bylaws, rebuilding public confidence in the station
and the network, re-establishing dynamic programming, and
rebuilding and stabilizing the national office.
Let me just comment on few of these areas that the network
has been focused on the last six months. 1) The Berkeley move;
2) Outstanding litigation; 3) Infrastructure; 4) National
Programming; 5) Training & Apprenticeship.
I'm very pleased to report that the move from Washington,
DC, to Berkeley has been successfully completed and a new
finance office is up and running. This was a tough job. Many
thanks to CFO Lonnie Hicks for leading the transition and
for assembling an outstanding new finance team. Many thanks
as well to Valerie Van Isler, Brian Gibbons, Joyce Snowden,
and Yhasmine Bryan for all their professionalism and hard
work. They made the transition seamless.
The National Office has also been very focused on litigation
from the Pacifica crisis period, including cases with Epstein,
Becker & Green and Decision Strategies. I'm pleased
to report that those cases are settled and that the professional
service firm issue is basically behind us. We still have three
personnel matters from the old days. They remain to be settled.
Infrastructure issues have taken a major focus as well in
recent months. At WPFW, priority No. 1 is the transmitter
and physical plant upgrade. This past June, the WPFW leadership
with the National Office launched a comprehensive technical
upgrade project the most extensive transmitter and physical
plant upgrade program in the network. Ed Bukont, WPFW's
consulting engineer, is leading the effort. This involves
a full overhaul of the transmitter, including building a digital
transmission capacity, installing back up generators, remote
links, and High Volume AC upgrade.
WBAI and KPFA have also applied for funding from the CPB
for digitization of their transmitters, part of our overall
push to be part of the new media revolution sweeping the country.
WBAI, as mentioned earlier, has some serious issues regarding
a back up transmitter.
At the national programming level, and as you heard yesterday
from the Affiliates Committee, Pacifica's war-related
coverage was very successful. We collaborated with more than
10 affiliates in developing special programming, including
providing continuous war coverage in the first few days of
the invasion and recolonization of Iraq. Democracy Now! bumped
up to two hours a day, Free Speech Radio News launched a special
headlines service, and the Washington Bureau produced the
daily one-hour show Peacewatch. Local stations also provided
enhanced coverage. Congratulations and many thanks to all
of Pacifica's editorial staff for an outstanding job.
While Peacewatch is no longer being carried by most of the
Pacifica stations, there is of course no must
carry and programming decisions are handled locally, the program
has worked very well at WPFW. We are exploring options with
the Peacewatch team and WPFW on how the program might continue
as a WPFW production. Some Pacifica stations have expressed
interest in a daily, 30 minute production covering national,
Washington affairs. The GMs and the national staff will be
working later this week to explore this matter further.
Another top priority this past year is our efforts to build
Pacifica's capacity to produce quality, community-based
programming. Indeed, if we are to establish a viable media
outlet for underserved communities, we need to train a whole
new generation of radio broadcasters. To that end, we have
developed a community-driven Training and Apprenticeship program,
which we hope to introduce throughout the Pacifica Radio network
in the next year.
FIRST VOICE Video
As this video highlights, we are aiming to significantly
expand Pacifica's arts, news and public affairs production
capacity with the understanding that Pacifica is no longer
just a radio broadcaster. We are a multi-platform, multi-media
organization. Yes, our future lies in developing our training
programs and expanding our organic relations with the communities
we serve. And if we are to serve those communities, and fulfill
our mission, we must also strengthen Pacifica's distribution
capacities, partner with independent media, build relations
with affiliates, and strengthen our Internet capacity. Never
before in post-war US history has there existed such an opportunity
for a progressive, independent media movement to grow and
expand as today. The future is ours. Let's seize the
time.
Thank-you.
|
