Minutes for the regular National Finance Committee meeting November 30, 2015.
Meeting convened at 8:38 PM (ET) a quorum being present, the Chair and
Secretary being present.
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Attending: Lydia Brazon, Adriana Casenave, Bill Crosier, Brian Edwards-Tiekert
(Chair), R. Paul Martin (Secretary), Tony Norman, Michael Novick, Cerene
Roberts, Nancy Sorden, Barbara Whipperman, also attending was, KPFK General
Manager Leslie Radford.
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Agenda:
Call to Order (5 minutes)
Agenda Approval (5 minutes)
Minutes Approval (5 minutes - if available)
Budget Review and Approval
WPFW Budget - fourth review (30 minutes)
WBAI Budget - sixth review (30 minutes)
KPFK Budget - ?th review - time certain 9:30 PM (ET) (30 minutes)
PRA Budget - 2nd review (30 minutes)
Cash Flow / Liquidity (5 minutes)
What happens when we can't get realistic budgets for a unit? (15 minutes)
Adjourn 10:30 PM (ET)
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Motion: (Adriana Casenave) "To approve the agenda." (Passed without objection
as amended)
Amendment: (Michael Novick) "To make item 4C 'KPFK budget' time certain for
9:30 PM (ET)." (Passed without objection)
Minutes Approval 8:46 PM (ET)
Motion: (Adriana Casenave) "To table this agenda item." (Passed without
objection)
Budget Review and Approval 8:47 PM (ET)
WPFW Budget 8:47 PM (ET)
There was no new budget for the committee to consider.
WBAI Budget 8:47 PM (ET)
There was no new budget for the committee to consider.
Motion: (Michael Novick) "To take the 'Minutes Approval' item off the table."
(Passed without objection)
Minutes Approval 8:47 PM (ET)
Motion: (R. Paul Martin) "To approve the minutes of the October 10, 2015,
meeting." (Passed without objection)
The committee discussed the motion.
PRA Budget 8:52 PM (ET)
The Chair told the committee that Pacifica Radio Archives (PRA) has not
submitted a revised budget with personnel cuts. The Chair read an E-mail from
the PRA Director to the NFC.
Motion: (Cerene Roberts) "To amend the agenda to take up 'KPFK Budget' now."
(Passed without objection) 8:56 PM (ET)
KPFK Budget 8:56 PM (ET)
The KPFK General Manager told the committee that changes were made to the KPFK
draft FY16 budget to make the expenses reflect what KPFK has been paying for
the last four months. They have also cut the National Office Central Services
fees to paying about $18,000 per month for past Central Services fees and about
the same amount for current Central Services fees, they hope to be able to
resume full Central Services payments later in FY16. The KPFK General Manager
said that they have reduced income in the KPFK draft budget to 80% in this
draft to reflect their most recent on-air fund raiser which came in at almost
exactly 80%. She said that this resulted in a balanced budget. She said the
station has a terrible time with payables, and pension and catch-up seniority
payments would be a problem. She said that this budget shows a savings of about
$1,000 a month on the new phone system although they expect to save about
$1,500 a month on it.
The committee discussed the KPFK draft FY16 budget proposal. It was noted that
cutting Central Services fees would affect the National Office's FY16 revenue.
The KPFK General Manager told the committee that the station is facing serious
difficulties due to the work force cuts, and keeping people on half time is not
a long term solution to KPFK's financial problems, she hoped that KPFK could
get through the December on-air fund raiser. There was a discussion about
whether or not KPFK could continue with the current number of FTEs. The KPFK
General Manager said that the station is paying the full Central Services fees
to the Pacifica Radio Archives (PRA).
At this point the Chair told a member that he could not ask a third question.
Point of Order: (R. Paul Martin) Debate and discussion cannot be so limited in
a committee.
The Chair ruled that the committee had passed a motion that a member could not
ask a third question in a row.
Motion: (R. Paul Martin) "Appeal the ruling of the Chair."
Motion: (Cerene Roberts) "To table the motion to appeal." (Passed 7 for, 2
against)
The committee continued to discuss the KPFK draft FY16 budget proposal. The
question was brought up of what happens when the KPFK Paid Staff go back to
their full hours, and whether some reductions might remain in effect. The KPFK
General Manager said that would depend on the results of the arbitration that
KPFK and the Union are participating in. She said that if the arbitrator rules
against KPFK then Management will have to go back to the drawing board in a big
way. The effect of KPFK deferring payment of Central Services fees was
discussed again. The KPFK General Manager said that the daily average revenue,
at an 80% fulfillment rate, would be about $26,600. The committee discussed the
projected increase in the daily tally, and the fulfillment rate for the KPFK
December on-air fund raiser. The KPFK General Manager said that once the
Pacifica elections are over things will settle down and that will contribute
to better on-air fund raisers. The KPFK General Manager said that there was no
feasible way to pay down KPFK's debt in nine months and that the station's
debts would probably have to be carried over into FY17, also leaving Paid Staff
at half time for the rest of FY16 would not be tenable and more layoffs would
result in severance payments that KPFK couldn't pay. The KPFK Treasurer said
that the Listener Support goals were actually lower than KPFK has accomplished
in the past and that if the station can raise enough revenue these problems
will disappear, he said that the KPFK LSB had passed a motion to commit to
raising funds off-air through sustainer pledges. The KPFK General Manager said
that the station is approaching Major Donors whom she believes will be
impressed with the station's established track record in cutting expenses, and
that the station will do a lot of grant seeking. She also said that undoubtedly
there will be attrition and those duties will be absorbed by remaining Staff.
She is also looking to monetize the Web stream and obtain free premiums, and
the General Manager said she is asking a grantor to let KPFK keep the grant
money the station was given for a project which will not now be completed. She
noted that she was still finding old bills that are in arrears at KPFK. The
committee discussed the possibility of making the current 50% cuts only 20%
cuts later in FY16.
Point of Order: (Lydia Brazon) Personnel issues should be discussed in open
session.
The Chair ruled that the point was well taken.
The committee continued the discussion of the plans to increase Listener
Support revenue and how many days of pitching it would require.
Motion: (Brian Edwards-Tiekert) "The National Finance Committee requests that
KPFK make the following revisions to its proposed budget by Monday, December 7:
1. Increase National Office Central Service expense to the same amount per
month as in 2015.
2. Zero out depreciation expense by making a negative adjustment under 'Cash
and Capital.'
3. Reduce operating expenses sufficiently to produce a surplus of at least
$100,000.
4. Re-structure cash payments of old payables to show positive cash balances
for every month."
The committee discussed the motion.
Amendment: (Michael Novick) "To change 'to produce a surplus of at least
$100,000' to 'to produce a balanced budget.'" (Passed 5 for, 4 against, 1
abstention)
The committee discussed the amendment.
Amendment: (Bill Crosier) "To add at the end, "5. Change listener support
revenue estimates to reflect the actual average dollars raised per day of fund
drive revenues in FY2015 and the fall drive of Oct-Nov. 2016, for both active
pitching fund drive days and 'quiet' fund drive days." (Fails 2 for, 6 against,
2 abstentions)
The committee discussed the amendment.
Motion: (Cerene Roberts) "To extend the time for the meeting by 15 minutes."
(Fails 4 for, 4 against, 2 abstentions) 10:40 PM (ET)
Motion as amended: (Brian Edwards-Tiekert) "The National Finance Committee
requests that KPFK make the following revisions to its proposed budget by
Monday, December 7:
1. Increase National Office Central Service expense to the same amount per
month as in 2015.
2. Zero out depreciation expense by making a negative adjustment under 'Cash
and Capital.'
3. Reduce operating expenses sufficiently to produce a balanced budget.
4. Re-structure cash payments of old payables to show positive cash balances
for every month." (Passed 9 for, 1 against)
Motion: (Adriana Casenave) "To add a meeting on December 14, 2015." (Passed
without objection)
Adjourned 10:45 PM (ET)
Submitted by R. Paul Martin, Secretary.