Thursday, December 21, 2017

Message from the iED

I sent this to PNB and LSB members, but we all need to understand these issues. I'm sorry I get long winded, but this is important and the details are important.
Bill
Subject:What the PNB and LSBs really need to do
Date:Thu, 21 Dec 2017 04:05:34 -0600


PNB Directors and other LSB members, (Directors and LSB chairs, please forward to your LSBs),


We really need your help - and we need you to understand your responsibilities - especially ones having to do with finances.

While it seems popular in Pacifica to blame others, to make excuses, and to spend time fighting with each other, you need to understand that as Board members, we/you have an obligation to help with station fundraising, and to make sure your station pays ALL (not just some) of its financial obligations

In fund drives, we talk about what would happen if you didn't pay your personal bills. Creditors would be more than unhappy - they'd take action to collect the money or have more adverse consequences.

But all of our stations need to pay all their bills, all the time, including ones to fund the National Office, which we all depend on.  We need ALL of you to help your station to get the revenues needed, and to control expenses, so we can keep the N.O. going so it can do its critically-needed work, just as your station needs funds to keep it going and keep its valuable programming on the air. And because we've been running deficits for many years, we have to do more than just break even - we have to figure out how to pay off the huge debt that we have, that is smothering us, that's driving away major donors, and scaring away those who may give us grants.

I realize there's great concern about the ESRT judgment, how to pay it, how to pay for our pensions, what ESRT will do if we continue to not pay anything on the tower lease (remember we've been paying nothing since June), and of course about the millions of dollars of other debt that we have. The judgment is both urgent and important.

But there's more to worry about - other very big and important matters.

I'm very concerned, as I hope you are, about the slow progress on our audits. Remember the warning letter that Pacifica got last winter, about losing our tax exemption if we did not get the audits done very soon? By having a special one-day fundraiser (that netted about $200K) and putting a lot of effort into it, we got the FY2015 audit done before the AG's extended deadline in August.  But it took a lot of work because there was so much catching up to do from neglect from prior years, and since that the NO has devoted a lot of time preparing materials for our 403(b) and retirement plan audits, because those had not been audited in several years and Pacifica also has not put any money into the retirement plan for several years - it's seriously delinquent. But after the NY judge told everyone he was awarding ESRT $1.8 million plus interest & attorneys feeseven that audit work had to be put aside when the PNB authorized preparations for bankruptcy. Then that was put aside when the PNB rescinded its motion on bankruptcy preparations, and the NO staff shifted its focus back to other matters.

While all this has been happening, our very small NO staff also has to handle all its regular, ongoing business, that cannot be stopped: payroll, HR issues, other personnel issues, pension fund issues and questions (lots of them after people found out about the years of non-funding), insurance (of various kinds), regular accounting for budgets/revenues/expenses, generation of various reports, many wire transfers between bank accounts within Pacifica each month (for payroll, health insurance, moving funds to cover shortfalls in some stations, etc.), keeping track of contracts, paying expenses not handled by the stations (including payment plans to some creditors, legal/FCC/compliance needs), and new things that seem to come up every week.

So we may lose our tax exemption for real within just a few months, if we can't get the resources needed to do all the above including what it takes to get our audits going full speed. And that will have disastrous consequences for our stations - even assuming we get past the ESRT judgment crisis.

People from all over Pacifica naturally expect prompt responses from the National Office. Now we need to again get back to preparations for bankruptcy (including updating everything that was done in October but then put on hold), even though the PNB has not authorized actual filing of bankruptcy, while we try to see if we can pay ESRT's judgment via a loan. 


Our CFO has said he CANNOT do all that's needed, with the inadequate resources that the N.O. is getting from the stations. We, as PNB and LSB members, have an obligation to make sure that not just our stations, but also the National Office, gets what it needs. It needs enough support so it can perform the many essential functions that our whole Foundation must have to survive.  We/you need to help our stations so they can pay their obligations, including to the N.O.

In fact, the National Office has been under-funded and under-staffed for years. It takes full-time, experienced and dedicated people to do the work. Your station needs such people - so does the N.O. And that takes money. Our dedicated NO staff have been putting in a lot of work this year to try to catch up, but they can't do it all with the resources they have while also doing all the regular/current work, much less take on additional tasks.


If we want to keep our tax exemption, so we can continue to get donations, we need to get the audits doneVery soon. We also need them done to have a chance at getting CPB funding again, which used to provide almost a million dollars a year. But we need all that other work done, too. We can't keep diverting our few people from one urgent project to another, leaving one thing undone so we can work on the emergency of the week all the time.

Several of our stations are making regular Central Services payments - these are very critical to fund N.O. operations. But one station rarely pays its CS obligations and sometimes even needs loans from the NO to cover its own shortfalls, and another station is doing better than previously but still can't be depended on to pay CS every month.

We also have debt - a lot of debt (close to $8 million including what we owe ESRT), plus another two and a half years of those awful tower lease payments (about $2 million dollars worth- for the Empire State Building). We have to develop a way of paying all that. We can't keep kicking the can down the road - that's how we got into the terrible mess we're in now.


I hope you all get to enjoy the holidays. But while we're in the giving season, I hope you'll remember that your station, and Pacifica, needs you, your dollars, and your time and energy, focused in a positive direction to help us rescue this precious Foundation that Lew Hill and his friends established so many years ago.  Will we be the ones people will remember, who fiddled (and fought with each other) while Rome burned? Or will we do what we need to do, what our obligations as board members require us to do, and make sure our station and the National Office and all of our operations get the resources they need? If those of us on our boards can't figure out how to work together and save this Foundation, what's the point of being on the board?

This is about the survival of Pacifica. I hope you will take it seriously. I sure do.


Bill
William G. (Bill) Crosier


6 comments:

  1. What is the matter with this PNB? There is no more time for posturing or blaming or playing games. The judgment is in effect or about to come in effect at all stations. They have to do something now. They need to stop pretending they don't know what's involved. That's been the number one topic for at least the last few months. They know everything involved in each of the options and if they say they don't then they are lying or incompetent or both. All other matters need to be set aside until this is dealt with.

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  2. What is the matter with this PNB? There is no more time for posturing or blaming or playing games. The judgment is in effect or about to come in effect at all stations. They have to do something now. They need to stop pretending they don't know what's involved. That's been the number one topic for at least the last few months. They know everything involved in each of the options and if they say they don't then they are lying or incompetent or both. All other matters need to be set aside until this is dealt with.

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    Replies
    1. I think the judgement is now posted for all Pacifica areas, if I read that earlier post right. I think it'll be 'too little late' time now..

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  3. Bill Crosier - "We were just notified today that ESRT has filed their judgment in DC. That means they've filed in every jurisdiction where we have stations - NY, CA, TX, and DC."

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  4. Finally reaching the Absolute Panic Stage...

    'When in trouble, when in doubt, run in circles, scream and shout.'

    Far far far far too late to be of any real use, however.

    ~ 'indigo'

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  5. Lots of talk about transmitter repairs, ESRT debts, etc. But not once does Crosier talk about how Pacifica treats their audience. It's kind of like sports talk hosts who go on about what total idiots their listeners are. They're so stupid they'll do ANYTHING I say. So why don't you quit? Because of the millions I get paid.

    The various factions continue their (what they see as) struggle to seize control of the network. We will do and say literally ANYTHING we have to to take over. Crosier talks about stoping the bullying and other bs. But what these factions are saying to him between the lines is fuck you. I don't give a fuck what your title is.

    Endlessly recycling the "Glory Days of Pacifica" doesn't solve anything. Do you really believe that the ESRT cares about what BAI did in the '70s? No they don't. And rightly so. They're getting what they deserve.

    ReplyDelete