The Corporation for Public Broadcasting: Federal Funding Facts and Status

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On September 30, 2008, President Bush signed into law the Consolidated Security, Disaster
Assistance, and Continuing Appropriations Act, 2009 (P.L. 110-329). This Continuing Resolution,
which provides funding for federal programs through March 2009, preserves $400 million for the
Corporation for Public Broadcasting (CPB). The CPB resides in the Labor-Health and Human
Services-Education appropriations bill, which did not reach final consideration before the passage
of the Continuing Resolution into law.
The CPB receives all of its funding through federal appropriations; overall, about 15% 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. This report
addresses the components of federal support for public broadcasting, as well as briefly describing
those issues facing public television and public radio. This report will be updated as events
warrant.

Backgr ound ..................................................................................................................................... 1
The Corporation for Public Broadcasting........................................................................................1
Public Television: PBS....................................................................................................................2
Public Radio: NPR and PRI............................................................................................................2
Federal Funding...............................................................................................................................2
Congressional Actions.....................................................................................................................4
Film Controversy and PBS..............................................................................................................4
Table 1. CPB Federal Appropriations, FY2001-FY2009................................................................4
Author Contact Information............................................................................................................5

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. 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 Public Broadcasting Service (PBS), National Public Radio (NPR), and Public
Radio International (PRI) sometimes receive direct 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,
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 ¹
will be available to their viewing or listening audience as well as on their programming schedule.

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, of which
the members are appointed by the President with the 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 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 public radio and television stations based on legislatively mandated formulas. The bulk
of these funds are to provide Community Service Grants (or CSGs) to stations that 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 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. The current president and CEO of CPB is Patricia de Stacy Harrison, appointed by the
board in June 2005.

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Overall, approximately 15% of all public television and radio broadcasting funding comes from
the federal appropriations that CPB distributes. However, among individual public broadcasting
stations, the amount of federal dollars that contributes to a station’s annual budget depends on
whether 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.

The PBS was created by the CPB in 1969 to operate and manage a nationwide (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 aggregates funding for the creation and acquisition
of programs by and for the stations and distributes them through its satellite program distribution
system. Paula Kerger became the sixth and current president and CEO of PBS in March 2006.

For radio, a different division of responsibilities was established. The CPB created NPR in 1970
as a news-gathering, production, and program-distribution company 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 producers to distribute their programs. 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. Vivian Schiller became the current president and CEO of NPR in
January 2009. Alisa Miller is president and CEO of PRI; she was appointed to both positions in

2005.

Public broadcasting reported total income of $2.3 billion in FY2003 (the most recent data
available). The federal contribution made up 15.6% of the system’s total income. The remaining
84.4% 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 grants from the CPB for their
general operations; only local public broadcasting stations receive these generally-unrestricted ²
funds directly.

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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 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-FY2000
^{($ in mill}^ions)
^Source:^{Compiled by the}^Congr^{essional Research Service from t}^{he Corporation for Pu}^{blic Broadcasting and}
^{The Budget of the U.S. Govern}^m^{ent, Fiscal Year 200}^6.

Table 1. CPB Federal Appropriations, FY2001-FY2009
^{($ in mill}^ions)
^Fiscal^{Administration Request}^{House Allowan}^ce^{Senate Allowance}^Final
^Year^Appr^opriation
²⁰⁰^{1 $34}⁰^$34⁰^$34⁰^$34⁰
²⁰⁰^{2 $35}⁰^$34⁰^$35⁰^$35⁰
²⁰⁰^{3 $36}⁵^$36⁵^$36⁵^$36^2.8
²⁰⁰⁴^a^$36^{5 $39}^$37^7.8
²⁰⁰⁵^a^$38⁰^$39⁵^$38^6.8^b
²⁰⁰⁶^a^$4⁰⁰^$40⁰^$39⁶^c
²⁰⁰⁷^a^$40⁰^$40⁰^$40⁰
²⁰⁰⁸^a^$40⁰^$40⁰^$3⁹³^d
²⁰⁰⁹^a^e^e^e
^Source:^{Compiled by the}^Congr^{essional Research Service from t}^{he Corporation for Pu}^{blic Broadcasting, The}
^{Budget of the U.S. Governme}^{nt, and Public Laws.}
^a.^{The Bush Administration}^{has re}^q^{uested that t}^{he two-year adva}^nce^{d approp}^{riations funding}^{for CPB end,}
^{and there}^{fore has}^{not re}^quest^{ed advanced ap}^{propriations since}²⁰^04.
^b.^{The FY200}^{5 a}^pprop^{riations inclu}^{ded a 0.80%}^{rescission for all federal approp}^{riations; CPB’s orig}^{inal advance}
^approp^{riation was $3}⁹⁰^milli^on.
^c.^{The FY200}^{6 a}^pprop^{riations inclu}^{des a 0.28}^{% rescission for all fede}^{ral approp}^{riations. The original}
^approp^{riation for CPB in FY200}⁶^{was $4}⁰⁰^million.
^d.^FY2009^fu^{nding ($4}⁰⁰^{million) is}^{under a Conti}^{nuing Resolution (P.L. 110-3}^29).
^e.^{The continuing}^{resolution for FY200}^{7 a}^ppro^{priations sustained t}^h^e^{advanced ap}^{propriations for CP}^{B at}
^$40^{0 million.}

Congressional policymakers provided $400 million in advanced appropriations for CPB in
FY2008, which was included in the Continuing Resolution that went into law on September 30,
2008. In its last budget request, the Bush Administration asked that the federal appropriations for
FY2009 and FY2010 funding be preserved, but that the advanced appropriations for CPB end in
FY2009.
Over the last several years, the Bush Administration also requested that up some funding from
CPB’s enacted appropriations be made available for digital conversion grants to public television
broadcasters. Also, the Administration asked that CPB funding be made available in to upgrade
and complete the national interconnection system, which is the national distribution network of
public broadcasting stations.

A development that has affected CPB indirectly and PBS directly has been public attention to
Public Broadcasting’s support of the Sundance Film Festival. At the January 2007 festival, much

media attention was directed towards several controversial films, particularly Hound dog, starring
13-year old actress Dakota Fanning, who is assaulted in the movie. One group, the American
Family Association (AFA), noted on its website that these controversial films were being funded ³
with PBS’ taxpayer money. The AFA initiated a campaign for its members to write to Members
of Congress to protest PBS’ involvement at Sundance.
In response, PBS released information on its participation in the Sundance Film Festival.
According to PBS, it participates in this festival because it considers it as one of the highest
profile showcases of documentary films in the United States. PBS contends that it has no control
or influence over films the Sundance Film Festival accepts. In 2007, PBS provided $40,000 to
sponsor events at the Filmmaker Lodge, a venue for educational panels on film making, film
distribution, and other industry issues. PBS executives participated on panels at the Filmmaker
Lodge to discuss film making and distribution of documentaries and to highlight PBS films and
film makers accepted at the festival. No PBS sponsorship funds have been used to support a
specific non-PBS film. In addition, the PBS funds used at the festival come from member station ⁴
dues, not federally appropriated money.
In May 2007, another broadcasting controversy occurred when PBS decided not to nationally
distribute a documentary entitled “Islam vs. Islamists: Voices From the Muslim Center.” The 52
minute film contends that, among other issues, moderate Muslims are being intimidated by
radical Islamists in several Western nations, including the United Sates. The film’s producers
claimed that PBS and the station that produced the film bowed to pressure from conservative
American Muslims by pressuring PBS not to distribute the film nationally. Eight Members of
Congress reportedly responded by letter demanding that CPB ask PBS to release the film or find
another avenue for distribution. In response, CPB released the film to Oregon Public
Broadcasting, which will distribute it to other public broadcast stations in the country. This will
likely result in fewer stations airing the film than if otherwise distributed through PBS. Observers
are concerned that CPB has contradicted its original mandate of 1967 to buffer public ⁵
broadcasting and its stations from political pressure.
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