Order Code RS22168
Updated June 22July 25, 2005
CRS Report for Congress
Received through the CRS Web
The Corporation for Public Broadcasting:
Federal Funding Facts and Status
Glenn J. McLoughlin
Specialist in Science and Technology Policy
Resources, Science and Industry Division
Summary
The Corporation for Public Broadcasting, created in 1967, receives approximately
15% of its annual funding from federal appropriations. In turn, the CPB, acting as an
umbrella agency, is required to spend 89 percent of the appropriations in grants to
members of Public Broadcasting Service (PBS), National Public Radio (NPR), Public
Radio International (PRI), and other affiliated public television and radio broadcasters.
The CPBCongressional policymakers are closely examining federal funding for the
Corporation for Public Broadcasting (CPB). Overall, 15.6% of all public television and
radio broadcasting funding comes from the federal appropriations that CPB distributes.
The CPB’s appropriation is allocated through a distribution formula established in its
authorizing legislation. It has historically received two-year advanced appropriations.
On June 9, 2005,
the subcommittee on Labor, Health and Human Services, Education
and Related
Agencies of the House Appropriations Committee considered the Labor ,,
Health and
Human Service and Related Agencies Appropriations Act for FY2006 (H.R.
3010). The
subcommittee voted to reduce CPB’s FY2006 appropriations (which had
been passed
as part of the FY2004 appropriations) from $400to $300 million; to eliminate both
FY2006 appropriations for digital conversion and for capital costs of replacing current
interconnection systems; and to $300 million. In addition,
the subcommittee voted to eliminate advanced federal appropriations for CPB byin
FY2008. On June 16, 2005, the full House Appropriations Committee voted to restore
$400 million in federal funding for CPB in FY2008; it also approved funding of $300
million for FY2006. (H.Rept. 109-143). This legislation will likely go to the floor of
the House of Representatives either June 23 or June 24. This report will be updated as
events warrant.
Background
The Corporation for Public Broadcasting (CPB) was created out (H.Rept. 109-143). On June 23, the full House considered the
appropriations bill, and approved an amendment to provide $400 million for the FY2006
CPB budget. On June 24, the House passed H.R. 3010, 250-151, and referred the bill
to the Senate. On July 11, the subcommittee on Labor, Health and Human Service,
Education and Related Agencies on the Senate Appropriations Committee held hearings
on the CPB FY2006 appropriations. On July 14, the Senate Appropriations Committee
reported out the FY2006 Labor, Health and Human Services, Education and Related
Agencies appropriations bill for FY2006 . The committee approved $400 million for
CPB in FY2008; it also approved funding in FY2006 for digital broadcasting, upgrade
of the current interconnection system, as well as encouraging additional activities of
CPB, all of which would come out of the FY2006 CPB budget. The Senate will next
vote on the bill. This report will be updated as events warrant.
Congressional Research Service { The Library of Congress
CRS-2
Background
The Corporation for Public Broadcasting (CPB) was incorporated as a private
nonprofit corporation in the District of Columbia under the authority of the Public
Broadcasting Act of 1967 (P.L. 90-129). The CPB was intended to provide a funding
mechanism for individual public broadcasting stations, but not subject these stations to
political influence or favoritism. Therefore, the CPB receives an annual appropriation,
and then uses this money, in addition to foundation, corporate, individual memberships,
and other funding sources,CPB was also intended to provide a funding mechanism
for the creation and operation of program distribution systems interconnecting the
individual public broadcasting stations. Therefore, the CPB receives an annual
appropriation, and then uses this money to provide grants to individual public television
and radio
broadcast entities, and independent program producers and distributors. The
. The Public Broadcasting SystemService (PBS), National Public Radio (NPR),
and Public Radio
International (PRI) do notsometimes receive any direct appropriations from CPB;
all of the appropriated money goes directly to member stations of these organizations.
Congressional Research Service ˜ The Library of Congress
CRS-2direct grants from CPB, but the vast majority of
the appropriated money goes directly to individual local public broadcasting stations,
including most of the member stations and affiliates of these national organizations.
The number of radio and television public broadcasting stations supported by the
CPB increased from 270 in 1969 to approximately 1,100 as of August 2003, of which 356
are television stations. Public broadcasting stations are mostly run by universities,
nonprofit community associations, and state government agencies, and local school boards.
Public broadcasting is regarded by many as a public service. To serve most
Americans, public
television reaches approximately 99% of the population and public
radio, 91%. With
regard to programming, the public broadcasting system observes the
principle of local
autonomy. That is, public broadcasting stations make decisions
independently of the CPB
as to what programming will be available to their viewing or
listening audience as well
as on their programming schedule.1
The Corporation for Public Broadcasting
The CPB serves as an umbrella organization for public television and radio
broadcasting. The CPB is a nonprofit private corporation and is guided by a 9-member
board of directors (including its president) who, of which the members are appointed by the President with the
advice advice
and consent of the Senate. The directors serve for staggered six-year terms.
Although its
creation as a private nonprofit corporation was motivated by the desire to
eliminate eliminate
political influence, it is required to make reports to Congress and submit to
audits. The
CPB’s principal function is to receive and distribute government
contributions (or federal
appropriations) to fund national programs and to support
qualified memberpublic radio and
television stations based on legislatively mandated formulas.
The bulk of these funds are
to provide Community Service Grants (or CSGs) to member
stations that have matching funds. meet specified eligibility
criteria, including the amount of matching funds they receive from non-federal sources.
By law, the CPB is authorized to exercise minimum
control of “program content or other
activities” of local member stations. The CPB is
prohibited from owning or operating any of the
primary facilities used in broadcasting.
In addition, it may not produce, disseminate, or
schedule programs. In 2004, W. Kenneth
Tomlinson was named Board Chairman of CPB.
Overall, 14.92003, Kenneth Y. Tomlinson was elected Chairman of the CPB
Board of Directors. The current president and CEO of CPB is Patricia S. Harrison,
appointed by the board in June 2005.
1
For data on CPB, see [http://www.cpb.org/about/].
CRS-3
Overall, 15.6% of all public television and radio broadcasting funding comes from
the federal appropriations that CPB distributes. However, among individual members of
PBS, NPR, and PRIpublic
broadcasting stations, the amount of federal dollars that contributes to a station’s annual
budget depends on the size of that station’s budget, the type of broadcast content
developed or purchased, and the specificity of individual grants awarded to these stations.
Public Broadcastingwhether it is a television or radio station, the funds it receives from
non-federal sources, the number and extent of broadcast transmitters required to service
its coverage area, and the extent a station is serving rural areas and minority audiences.
Public Television: PBS
The PBS was created by the CPB in 1969 to operate and manage a national
interconnection (or satellite) system and to provide a distribution channel for national
programs to public television stations. The PBS is owned and operated by the localnationwide (now
satellite) program distribution system interconnecting all the local public television
stations, and providing a distribution channel for national programs to those public
television stations. Although the PBS does not produce programs for its members, it
fundsaggregates funding for the creation and acquisition of programs by and for the stations and
distributes them
through its satellite program distribution system. The current acting president president
and CEO
of PBS is Ken Feree, appointed in April 2005.
1
For data on CPB, see [http://www.cpb.org/about/].
CRS-3Pat Mitchell, appointed by the PBS board in March 2000. Mitchell
announced earlier this year that she will resign in June 2006.
Public Radio: NPR and PRI
For radio, a different division of responsibilities was established. The CPB created
NPR in 1970 as a news-gathering, production, and program-distribution company owned
governed by its member public radio stations. Unlike its public television counterpart,
NPR is
authorized to produce radio programs for its members as well as to provide,
acquire, and
distribute radio programming through its satellite program distribution
system, with
regional “up-links” available across the nation for public radio stations and other
other producers to distribute their programs. Public Radio International (PRI) was created to
provide global broadcast of public radio content. Kevin Klose, former director of the U.S.
International The public radio satellite system is governed
by elected representatives of the entire community of public radio stations, both those
which are members of National Public Radio, and those which are not. Public Radio
International (PRI) was created by a consortium of individual public radio stations to act
as another distributor of public radio content, in competition with National Public Radio
and other existing distributors. Kevin Klose, former director of the U.S. International
Broadcasting Bureau, the government’s non-military worldwide radio and
television television
network, is president and CEO of NPR. He was appointed in 1998. Stephen
Saylor is President and CEO of PRIby the NPR board in 1998.
Stephen Salyer is President and CEO of PRI. He was appointed by the PRI board in 1988.
Salyer recently announced that he will resign in the fall of 2005.
Federal Funding
Public broadcasting reported total income of $2.3 billion in FY2003 (the most recent
data available). The federal contribution made up about 1515.6% of the system’s total
income.
The remaining 8584.4% was raised from non-federal sources (including individuals,
businesses, foundations, state and local governments, and educational institutions). The
largest single income source (26% in FY2003) came from membership. Neither PBS nor
NPR receives operating fundsgrants from the CPB for their general operations; only local public
broadcasting; only the local member stations receive these
funds directly.2 generally-unrestricted funds directly.2
2
[http://www.cpb.org/tv/funding].
CRS-4
The CPB received its first federal funding in FY1969 and continued to receive
annual authorizations and appropriations until FY1975, when the Public Broadcasting
Financing Act of 1975
(P.L. 94-192) established authorization for long-term financing.
The 1975 Act authorized
funding for public broadcasting over a period of five years.
Advanced funding from
Congress now sets actual appropriations two years in advance of
stations’ receiving their
funds from the CPB. The CPB was last reauthorized by Congress
in 1992 (P.L. 102-356).
The CPB’s appropriation is allocated through a distribution formula established in
its authorizing legislation. The uses of the CPB’s funds are broken down into four
categories: grants to stations; grants for programming; system support; and administrative
operations. Approximately 89% of the funding the CPB receives from the federal
government, and all interest earned from federal funds held by the CPB for distribution,
is required to be disbursed to television and radio broadcasters. Of that amount, about
18% is allocated to program producers in the form of grants, and not less than 5% of the
total appropriation is used for administrative expenses. The remaining percentage of
funds is set aside by the CPB for general system-wide needs that individual stations would
have difficulty funding. A history of appropriations to the CPB is presented in Figure 1
below; the more recent history of appropriations is in Table 1.
2
[http://www.cpb.org/tv/funding].
CRS-4 is required to be disbursed in the first two categories, either to public
television and radio, broadcasting stations, or to the producers and distributors of public
radio and television programs. Of that amount, about 18% is allocated for grants to
program producers, and about 5% is allocated for grants to public radio stations that are
restricted in use to production or acquisition of national programs. Almost two-thirds of
the total appropriation is allocated for largely unrestricted grants to public television and
radio broadcasting stations. No more than 5% of the total appropriation may be used for
CPB’s administrative expenses. The remaining percentage of funds is set aside by the
CPB for general system-wide needs that individual stations would have difficulty funding.
A history of appropriations to the CPB is presented in Figure 1 below; the more recent
history of appropriations is in Table 1.
Figure 1. CPB Federal Appropriations Trend Line FY1969-2000
($ in millions)
Source: Compiled by the Congressional Research Service from the Corporation for Public
Broadcasting and The Budget of the U.S. Government, Fiscal Year 2006.
CRS-5
Table 1. CPB Federal Appropriations
, FY2001-FY2007
($ in millions)
Fiscal
Year
Administration
Request
House
Allowance
Senate
Allowance
Final
Appropriation
2001
$340
$340
$340
$340
2002
$350
$340
$350
$350
2003
$365
$365
$365
$362.8
2004
a
$365
$395
$380377.8
2005
a
$380
$395
$368.8c386.8b
2006
a
$300b400
$400
$400
2007
a
$400
$400
$400
2008
a
—
—-
—-
Notes:
aa. The Bush Administration has requested that the two-year advanced appropriations funding
for CPB end,
and therefore has not requested advanced appropriations since 2004.
b. The FY2005 appropriations included a 0.80% rescission for all federal appropriations; CPB’s original
advance appropriation was $390 million. The FY2006 House appropriations was set at $400 million in FY2004; $300 million
reflects the most recent action by the House Committee on Appropriations on June 16, 2005.
c The President’s FY2006 budget included a $10 million rescission for CPB’s advance
appropriation of $390 million.
CRS-5
Congressional Actions
Congressional policymakers are currently addressing the FY2006 federal
appropriations for CPB, as well as the future of federal funding for public broadcasting.
On June 9, 2005, the subcommittee on Labor, Health and Human Services, Education and
Related Agencies of the House Appropriations Committee voted to reduce CPB’s FY2006
appropriations (which had been passed as part of the FY2004 appropriations) from $400
million to $300 million. In addition, the subcommittee voted to end all federal
appropriations for CPB in FY2006FY2008 (Labor, Health and Human Services, Education and
Related Agencies FY2006 Appropriations, H.R. 3010).
On June 16, 2005, the full House
Appropriations Committee voted to restore $400
million in federal funding for CPB in
FY2008; it also approved funding of $300 million
for FY2006. (H. Report 109-143)
H.R. 3010 will likely be considered on the floor of the House of Representatives is either
Thursday, June 23 or Friday, June 24. There has been no action by the Senate on this
legislation to date. In addition, in both FY2004 and FY2005, Senate appropriators
provided additional funding for CPB to provide conversion of its analog broadcasts to
digital broadcasts; for FY2006, the House appropriators have stated that funding for this
conversion must come out of the CPB’s existing budgetRept. 109-143) On June 23, the full House considered H.R. 3010 and
approved an amendment to provide $400 million to CPB for FY2006. On June 24, the
House passed H.R. 3010, 205-151, and referred the bill to the Senate. In addition, for
FY2006, the House appropriators stated that funding for this conversion must come out
of the CPB’s existing budget.
On July 11, the subcommittee on Labor, Health and Human Service, Education and
Related Agencies of the Senate Appropriations Committee held hearings on the CPB
appropriations, administration and political bias in broadcasting. On July 14, the Senate
Appropriations Committee reported out the FY2006 Labor, Health and Human Services,
Education and Related Agencies appropriations bill for FY2006 ( S.Rept. 109-103 to
accompany H.R. 3010). The committee approved $400 million for CPB in FY2008; it
also approved funding in FY2006 for digital broadcasting, upgrade of the current
interconnection system, as well as encouraging additional activities of CPB, all of which
would come out of the FY2006 CPB budget. The full Senate will next take up the CPB
appropriations bill.