FINANCE AND DEVELOPMENT June 1995 The Finance and Development Committees had a productive meeting. The tone was very different from the doom and gloom of the last meeting. The Committee was able to move from a position of 100% CSG cuts and no commitment from SCA to stations to a recommendation that stations cut their CSG's by 30%. FY 96 budgets will reflect 70% of CPB funds. Some guests wished to attend the Finance Committee meeting. The Committee clarified that all Finance Committee meetings of Pacifica are in Executive Session unless otherwise noted. The Committee will be expanded to include a representative from each station. Unit Managers attended the meeting as a group. This worked well and will be made standard practice. Starting the budget process In March and April will become standard practice. The Central Service fee will be assessed at a uniform 13% for all units. Each unit will set aside 2 reserve funds. In one 2% of total gross salary will be budgeted so that the severance liability will be paid off In 4 years. It Is hoped that a pension plan can replace severance. The other reserve fund will be an equipment reserve of 1% of total revenue or $10,000 (which ever Is higher) Both reserve funds will be budgeted for the next fiscal year. In general, Pacifica is not financially stable. KPFK consistently under budgeted around technical needs and infrastructure and as a result will be given an SCA grant to upgrade the facility. Current improvements will cost $150,000. KPFA is putting new programming into place. The station is foreseeing a loss In listener support which may be made up in the second half of the fiscal year. WPFW Is optimistic that it can raise more money next year. There needs to be clarity on whether Julianne Malveaux is local or national. WBAI has had a banner year and is projecting greater growth next year. The Committee is nervous about how long the station will be able to sustain this growth. All stations feel that their fundraising success and extra income is based on the current political situation. They are worried that this may not last and that they may need to make adjustments. If CPB funds Pacifica at more than 70% of current CSG's the excess will be placed In a reserve fund. The Finance Committee feels that the prudent thing to do is to set money aside. By and large the committee thought that unit budgets are good and reasonable. SCA The SCA budget is still in draft form. The Committee wants to move away from station subsidies. The SCA fund will be used for new ideas and future growth. Next year the fund will be at $870,000. National Programs will likely be subsidized at $179,000, WBAI will not be funded for technical support. WPFW and KPFT will receive funds for a transmitter engineer. $15,000 will be set aside for ISDN systems. $50,000 will be allocated for KPFK technical needs. $60,000 will be set aside for WBAI for its Empire lease - fulfilling the original commitment to WBAI. The Committee Will evaluate the commitment to WBAI in 2 years. $27,000 of the current program fund will be rolled over into next year. Anything from the current fiscal year will reduce station contributions to the fund in the next fiscal year. The Committee wants to make allocations for development of the Archive so that it can be a money making operation. Another grant will be made for other technology. Pat will work with staff to make a proposal to the Finance Committee. Frank Millspaugh asked if the central service fee increase to 13% could be eased over 2 years at 1.5% per year. The Finance Committee felt that the fee is equitable and will recommend the increase. Valerie wants the reserve fund to be used In FY96 for the programming initiative. The Committee will examine its meetings and separate what should be in executive session and what can be open. This will be defined in the board booklet. KPFK and WBAI are not represented on the Committee - June will talk over committee rules with Jack and Mary and formalize standards. The Finance Committee recommended two policies for Immediate action: 1. That it become Pacifica policy that confidential employees shall not be members of unions. This will include business managers, bookkeepers, assistants to both, program directors, General Managers and management team members in general. Of particular concern are people dealing with confidential Information. Any future negotiation on union contracts must be in line with this new Pacifica policy. 2. That the freeze on all hiring be lifted as of October 1, 1995. Instead Units may make temporary hires of new staff. These staff will understand that their positions will last for a year or less. Lateral transfers of current staff into new positions will be allowed. Management positions will be excluded from this policy. Temporary staff will be eligible for benefits. This policy is in response to Paciflca's uncertain financial future and only has to do with its inability at this moment to make a long term commitment to new employees. The freeze on hiring will stay in place until September 30, 1995. The Finance Committee will lift the freeze as of October 1, 1995 at which point all new hires will be for no more than one year October 1, 1995 to September 30,1996. MOTION: That these concepts be voted on separately. M/S/F Yes 5 No 5 Abstain 3 MOTION: That both the above recommendations be adopted. Yes 13 No 0 Abstain 0 M/S/P DEVELOPMENT COMMITTEE The Committee discussed the importance of major gifts programs at the stations. Several stations have requested Dick Bunce's assistance in establishing major and planned gift programs. The Committee proposed that all stations have an EFT system in place before the winter fund drive. KPFA will prepare a memo detailing how to put EFT into place. Dick Bunce will assure that this is done. A conference call will be set up with Dick Bunce, June Makela, Pat Scott and Roberta Brooks about Dick's visits to stations to set up major gifts programs. At the last meeting the Board passed a policy that all local advisory board members need to be subscribers to their station. At WPFW only one peron is not a donor, at WBAI most are donors, KPFA has two board members not in compliance, KPFT has 100% compliance and at KPFK most of the board contributes to the station. National Board members were asked to send out their letters to solicit for the Defense Campaign within 3 weeks. - Responding to Frank Millspaugh's memo - the issues of fundralsing on the web will be sent to the Executive Committee for discussion. MOTION: Each station must have an Electronic Funds Transfer system in place before the winter, 1996 fund drive. The National Office will assure that stations receive preparatory information needed to put this Into place. M/S/P Unanimous