Just the facts, people....

Last Thursday, July 28, Bill Crosier, the PNB Director from KPFT, called a Special Meeting to discuss Pacifica's financial crisis. Predictably, this did not please the PNB's majority faction whose members tend to keep their heads in the sand whenever reality surfaces, so a quorum was not achieved. However, perhaps for that reason, they had a productive  and focused discussion that centered around actions that could be implemented fairly quickly to increase revenue and, as Crosier put it, "Avoid extremely unpleasant consequences that might be just around the corner if we don't change what we're doing".

"It seems clear that all of us, at all of our stations, need to be willing to give a little," Crosier added, "and to support our managers in making programming changes that can increase listeners and donations, so that our stations and our mission can survive. The current path is unsustainable and will lead to devastating consequences very soon, if actions are not taken now to increase revenue and/or cut expenses.  We cannot keep delaying action on this, as each week we wait puts us closer to either bankruptcy or severe actions that might be needed to prevent that."

Bill Crosier is among the few clear-headed Pacifica board members, as this Report bears witness to. It is posted here in answer to his request that it be distributed.

Report from July 28 

Special Meeting on Pacifica Financial Crisis

Several members of the Pacifica National Board met on July 28 to discuss our financial crisis and what we might do about it. Questions and suggestions from other Pacifica members were also requested and some of their suggestions are included here.

We started with a review of the most recent CFO report, which clearly showed how urgent and important it is that we take actions immediately to either bring in more revenue, and/or cut expenses. 

We then briefly discussed what the very serious implications might be if we don't take effective actions immediately to deal with our financial crisis. The implications are likely to include loss of health insurance, bigger layoffs of paid staff, automation of stations that are failing financially, or bankruptcy if inadequate actions are taken (or taken too late). Bankruptcy would likely be extremely expensive, requiring not only the above actions to cut costs, but also selling of possibly all of our buildings to pay not only creditors but also for the expenses of the bankruptcy itself. So clearly we need to act now to avoid that, even if we have to change some of the ways we are doing things.

Below are some of the suggested actions to be considered, many of which involve improving programming and emphasizing the financial aspects much more than now. Management, especially at stations that are failing financially, should be required to implement at least some of these immediately. Managers who cannot or will not make changes may need to be replaced.

* Continue mission-related programming but remember that shows with few listeners nor supporters are not helping either our finances nor our mission.

* Continue shows that might not directly relate to our mission (example: music programs) but which bring in substantial funds and which effectively subsidize other mission-critical shows with significant listenership but which don't bring in many donations.

* Each station should identify the shows that bring in the most revenue (especially compared to other shows in similar time slots), and which have the most listeners, and either repeat them (on different days or times) to give them more air time, or make the shows longer (if the producers are willing).

* Each station should identify the shows that bring in the least revenue and that have the least listeners (compared to other shows in similar time slots), and replace them with shows that are proven to bring in more money.

* Shows that do well in terms of listenership and revenue, could be put in better time slots (or better: left where they are and repeated in better time slots).

* Shows that do not do well could be moved to an online-only web stream, or removed completely.

* GM's and PD's from each station should try some successful shows from other stations (including from our affiliates) as replacements for low performing shows. There is little risk in removing a low-performing show, and if adequately promoted, a good replacement should generate more revenue by the next fund drive. If not, then it could be replaced with yet another show after a few months, again with little risk. Shows that are doing well should get more air time (or repeats), if possible, or at least should be left alone.

* Station managers should be encouraged, not criticized, for adding shows that have done well at other stations. They should not be encouraged to keep low-performing shows with few listeners nor supporters in the schedule - we cannot afford to do that.

* Management should require program hosts to help pitch for their shows that are carried on other stations, by mentioning more than their local station when pitching (to make the pitches usable at other stations, similar to what many NPR program hosts do), by recording pitches for other stations, and/or by pitching live for other stations. A combination of these would be best. If such pitch assistance was guaranteed, it would be much easier for other stations to carry the programs produced elsewhere.

* Get promised thank-you gifts sent to donors, or at least contact them and ask if a substitute gift would be OK. This is critical for re-gaining past donors!

* Call major donors and lapsed donors, thank them for their past support, ask if they still listen to the station, resolve any issues such as not receiving thank-you gifts, and ask them to give again - either as a one-time gift or set up for automatic monthly sustainer donations.

* Promote shows via social media, encourage/require programmers to promote their own shows, do more cross-promotion (where hosts tell their listeners about other shows) on-air. This costs nothing but could help get more listeners, or help current listeners find more shows they may enjoy, thereby encouraging to them to donate more.

* Accept underwriting by small businesses and non-profits, with limitations on how much any one company or organization can pay us.

* Reduce expenses via consolidation across Pacifica of some services (example: Voice Over Internet telephone service, credit card processing with text to donate, etc.) by starting with a vendor that does well at one station and contracting with them for all stations.

Some specific Pacifica-produced shows that are popular, do well financially (especially if you ask the hosts to pitch for your station), have national appeal (or would with minor changes), and have been suggested for sharing on other stations include:

•   - Arab Voices with Said Fatou (from KPFT)
•   - Arise with Bill Fletcher (from WPFW)
•   - Behind the News with Henwood (from WBAI)
•   - Bradcast and Green News Report with Brad Friedman (from KPFK)
•   - The Collision (where sports and politics collide, from WPFW)
•   - Coming to America (immigration call-in show, from KPFT)
•   - Cultural Baggage and Century of Lies with Dean Becker (drug war news, from              KPFT)
•   - Economic Update with Richard Wolff (economics from a Marxist perspective, from      WBAI)
•   - Exploration with Michio Kaku (from WBAI) (science, produced erratically, though)
•   - Flashpoints with Dennis Bernstein (news & analysis, from KPFA)
•   - From the Vault, from Pacifica Radio Archives
•   - Guns and Butter (from KPFA)
•   - Hard Knock Radio with Davey D & Anita Johnson (from KPFA)
•   - Her Sex, Her Health with Dr. Alexandra Somotas (call-in show, from KPFT)
•   - Jimmy Dore Show (political satire, from KPFK)
•   - Law and Disorder (from WBAI)
•   - Letters and Politics with Mitch Jeserich (news & commentary, from KPFA)
•   - The Monitor with Mark Bebawi (news analysis, from KPFT)
•   - Nuestra Palabra (Latino writers, in English, from KPFT)
•   - Off the Hook (technology, from WBAI)
•   - Pacifica Evening News (from KPFA) (might need to change for non-California               stations)
•   - Partisan Gridlock with Geoff Berg (call-in, politics with some satire, from KPFT)
•   - Personal Computer Show (from WBAI)
•   - Politics Done Right with Egberto Willies (call-in, from KPFT)
•   - Project Censored Show (from KPFA)
•   - Roy of Hollywood with Roy Tuckman (late night big money-maker, from KPFK)
•   - Rising Up with Sonali Kolhatkar (news & analysis, from KPFK)
•   - Sojourner Truth with Margaret Prescod (news analysis, from KPFK)
•   - Spare Change with Larry Winters (music with progressive political slant, from                KPFT)
•   - Technology Bytes (tech news & call-in computer help, from KPFT)
•   - other music shows from KPFT and WPFW that do well

Shows from our affiliates that have been suggested 

to replace low-performing local shows:

•   - The Attitude with Arnie Arnesen & Susan Bruce (news analysis)
•   - Counterspin, from FAIR (Fairness and Accuracy In Reporting) (spin analysis), 30           min.
•   - Gary Null show (health & wellness, independently produced, sometimes on WBAI)
•   - Peace Talks Radio
•   - Ralph Nader Radio Hour
•   - Sprouts (variety of topics, from various affiliate stations), 30 min.
•   - Talk Nation Radio with David Swanson (peace news & more)
•   - This Way Out (LGBT news)  - Planetary Radio, 30 min.
•   - Thom Hartmann Show (call-in, current events, 3 hr each weekday, edited to 1              hr/day by KPFT)

  - plus many others available at Audioport

Recommendations from the last (July 6) CFO Report:

1. Focus must shift from cost cuts to revenue growth. We cannot cut our way into prosperity. In the absence of any tangible plan on the table how to grow the business, Foundation is forced into the default option of cost cuts.

2. IED and WPFW Station Manager to jointly, prepare, a 30-60-90 day plan, consult with CFO, and present to PNB within 15 days from today, with specific details how to sustain the current operations

3. IED and WBAI Station Manager to jointly, prepare, a 30-60-90 day plan, consult with CFO, and present to PNB within 15 days from today, with specific details how to sustain the current operations

4. IED and PRA Interim Director to jointly, prepare, a 30-60-90 day plan, consult with CFO, and present to PNB within 15 days from today, with specific details how to sustain the current operations (and contingency plan if Stations fail to make payment of Central Services)

5. PNB to authorize CFO to demand payment of Central Services from the Station, where it is in 3 months arrear, in preference over payment of other bills, except for payroll and health insurance

6. Highly recommend that we upgrade Great Plains to latest version, even if we may have to take external financing

See also these Other Suggestions to Increase Revenue, from the June 26 Special Meeting on Pacifica's Financial Crisis.

Here is an audio of the full meeting. (Courtesy of Tracy Rosenberg)