Recovery plan Groundhog Day
by James Ross, 9-28-07
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Dear PNB members,
I hear there's another recovery plan in the works for WBAI. Yes, another one. WBAI has quite a history with these things. It's almost a tradition - every fall, people talk in serious tones about disastrous consequences, and the PNB passes another motion calling for WBAI to get its act together.
Too bad nothing really changes ... After five years of recovery, WBAI is worse off than ever. Now we have no reserves, and are looking at more pay cuts, and rely on money from elsewhere in the network to keep us going.
Here are the gory details. You may want to remember them when someone calls the current crisis "an extraordinary, one-time event" or some such thing.
--In fall 2003, WBAI faced a fiscal crisis, and the ED presented a recovery plan that called for, among other things, re-thinking of programming, reorganizing development, and an increase in fulfillment.
--In fall 2004, the WBAI LSB rejected management's budget, because it was too big. However, the PNB in its wisdom approved the big budget anyway. That led to a big deficit at the end of the fiscal year. Panic ensued as the rest of the network was called on to fundraise for WBAI.
--in fall 2005, WBAI laid off 3 FTEs, and actually did the responsible thing, made a smaller budget. Which helped some. But not enough. So ...
--in Fall 2006, the PNB called for another recovery plan for WBAI that included repayment of shortfalls in central service payments. The station did produce a list of good ideas, including increasing fulfillment, re-branding the station, and so on. But there was no follow-up. And the station did not produce a smaller budget. So - the fiscal year is ending with a big deficit. WBAI owes $200,000 or more to the national office. We hear more panic and dire predictions.
--in Fall 2007, WBAI produces a budget that calls for modest cut in the salary line, but also is based on extravagant income predictions. The NFC approves this budget, but ties it to a motion calling for another recovery plan.
I think we have proven conclusively that the "recovery plan" approach isn't getting it done.
The PNB needs to get serious if it is to deal with WBAI's chronic financial crises, and the ensuing threat to the rest of Pacifica. The first step forward should be to replace the current extravagant proposed budget with one based on proven income, which means cuts of $150,000 or so. From there, you need to look at more serious financial oversight.
If you don't, the network will wind up underwriting WBAI again. Is this what you want?
Sincerely,
Jamie Ross
WAI LSB member, listener-representative
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