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 What is the Corporation for Public Broadcasting?
The Corporation for Public Broadcasting (CPB) is a private, nonprofit corporation created by Congress in 1967 to provide financial support and services to the public broadcasting system, which includes such organizations as PBS and National Public Radio, public television and radio stations, and individual program producers. Congress appropriates federal tax dollars to CPB ($340 million in fiscal 2001) for distribution within the public broadcasting community. CPB distributes more than 95 cents of every dollar of its budget to public broadcasting enterprises for programming, station operations, and system support and development.
Why is CPB funding vital to PBS and public television stations?
CPB funds comprise a small but vital component of support for PBS and its member stations. The federal appropriation provides critical seed money that is leveraged to bring in additional funding; every dollar invested in public television at the federal level draws five to six dollars from other sources. A stable national funding source enables public television to stay noncommercial in an often volatile economy. Public television is a public-private, national-local partnership that works, offering high value for low cost. Universally available and free of charge, public television costs 98 cents per person per year in federal funding. Americans rank public broadcasting among the five best values for services received in return for their tax dollars, according to a May 2001 Roper Starch Worldwide poll.
How are PBS member stations funded?
Funding from a wide variety of sources ensures that public television remains independent of, yet responsible to, its many stakeholders. Membership contributions are the largest single source of support for public television stations. Membership accounted for 23 percent of public television stations' total revenues in fiscal 1999, with approximately 4.7 million individuals and families nationwide voluntarily contributing $373 million to their local stations. CPB funding and federal government grants and contracts accounted for approximately 15 percent of the revenue total. Additional funding sources for individual stations include state and local government, businesses, foundations, and colleges and universities, among others.
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| (in thousands) |
|
FY 2001 |
|
FY 2000 |
|
FY 1999 |
|
FY 1998 |
|
FY 1997 |
|
|
| Total Assets |
$ |
285,280 |
|
302,262 |
|
349,589 |
|
344,700 |
|
311,620 |
|
| Total Liabilities and Minority Interest |
|
99,818 |
|
90,244 |
|
115,288 |
|
90,308 |
|
71,457 |
|
| Net Assets |
|
185,462 |
|
212,018 |
|
234,301 |
|
254,392 |
|
240,163 |
|
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| Operating Revenues: |
| Member Program and Service Assessments |
|
146,072 |
|
137,213 |
|
130,199 |
|
130,136 |
|
126,420 |
|
| Non-Member Revenues: |
| Educational Product Sales |
|
55,216 |
|
50,450 |
|
56,511 |
|
46,612 |
|
38,620 |
|
| CPB and U.S. Department of Education Grants |
|
56,022 |
|
43,730 |
|
46,746 |
|
41,586 |
|
27,553 |
|
| Royalties, License Fees, Investment |
|
|
|
|
|
|
|
|
|
|
|
| Income and Other |
|
62,408 |
|
81,690 |
|
50,799 |
|
43,645 |
|
32,341 |
|
|
|
| Total Operating Revenues |
|
319,718 |
|
313,083 |
|
284,255 |
|
261,979 |
|
224,934 |
|
| Program Underwriting (1) |
|
221,904 |
|
175,876 |
|
137,319 |
|
186,148 |
|
142,604 |
|
|
|
| Extraordinary Item: Net Gain Resulting |
|
|
|
|
|
|
|
|
|
|
|
| From Satellite Failure |
|
- |
|
- |
|
- |
|
- |
|
17,592 |
|
|
|
| Total Revenues (2) |
|
541,622 |
|
488,959 |
|
421,574 |
|
448,127 |
|
385,130 |
|
|
| Total Expenses |
|
568,178 |
|
511,242 |
|
441,665 |
|
433,898 |
|
349,634 |
|
| Changes in Designated and Temporarily |
|
|
|
|
|
|
|
|
|
|
|
| Restricted Net Assets (3) |
|
(39,758) |
|
(35,143) |
|
(21,368) |
|
4,943 |
|
31,787 |
|
|
|
| Total Expenses and Changes in Net Assets |
|
528,420 |
|
476,099 |
|
420,297 |
|
438,841 |
|
381,421 |
|
|
| Operating Earnings |
$ |
13,202 |
|
12,860 |
|
1,277 |
|
9,286 |
|
3,709 |
|
 |
|
|
| (1) The primary component of designated net assets represents investments in programming carried as an asset until the program is broadcast. Since 1998, declines in designated net assets reflect the broadcast and related expense recognition of programming acquired and capitalized in prior years, as well as the depreciation of PBS's prepaid satellite lease. |
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 |
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REVENUES (in millions)
In addition to operating revenues, total revenues include program underwriting. These revenues represent funds that do not flow directly to PBS, but are provided to producers by corporations, foundations and other sources. These funds allow PBS to finance only a portion of the total value of programming. Underwriting revenue and an equal amount of expense is recognized in the fiscal year a program is broadcast. This total fluctuates from year to year in large measure due to the timing and scheduling of programs. Non-member revenue sources include educational product sales, grants from the Corporation for Public Broadcasting (CPB) and the U.S. Department of Education, royalties, license fees and investment income. While CPB revenues have grown only modestly between fiscal 1997 and 2001, non-member revenues have grown at a 15 percent compound growth rate, driven by increases in both education grants and educational product sales. |
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| EXPENSES (FY 2001)
PBS consistently devotes approximately three-fourths of its total revenues to noncommercial programming and promotion. PBS has aligned its resources to ensure that three strategic priorities are met effectively and efficiently: providing quality noncommercial programming and education services to its member stations, leveraging that content to engage citizens in communities nationwide, and offering universal access to public television's programs and services. Support for PBS's satellite distribution system and related technical support represents 6 percent of total expenses, while management and general expenses are 4 percent of the total. The remaining expenses support other member and educational services. |
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