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Sunday, December 4, 2016

Big Bird Debate: How Much Does Federal Funding Matter To Public Broadcasting?

Big Bird Debate: How Much Does Federal Funding Matter To Public Broadcasting?

by Suevon Lee, ProPublica

Are Big Bird’s 15 minutes up yet? Last week, Mitt Romney pulled public broadcasting into the presidential campaign when he said he would “stop the subsidy” to PBS, despite his love for the furry yellow Muppet.

The remark launched endless Internet memes, fueled late-night television jokes and spawned a satirical Obama campaign ad (which the Sesame Workshop, a private, non-partisan charitable organization, has requested the campaign pull). Given the recent flurry of attention, we thought it would be helpful to examine how much federal funding actually affects public broadcasting.

How large is the federal subsidy to public broadcasting?

It’s not exactly breaking the bank. The Corporation for Public Broadcasting, the entity created by Congress in 1967 to disperse funds to non-profit broadcast outlets like PBS and NPR, is set to receive $445 million over the next two years. Per a statutory formula, public television gets about 75 percent of this appropriation while public radio receives 25 percent.

This amounts to roughly .012 percent of the $3.8 trillion federal budget—or about $1.35 per person per year. Some global perspective: elsewhere in the world, Canada spends $22.48 per citizen, Japan $58.86 per citizen, the United Kingdom $80.36 per citizen, and Denmark, $101 per citizen.

This sounds like a drop in the bucket. Why would Romney focus on such a small figure?

Because Romney’s approach is to target every government program he thinks is “not essential.” The candidate’s current spending plan not only calls for eliminating Obamacare and privatizing Amtrak, but deep reductions in subsidies to CPB and cultural agencies such as the National Endowments for the Arts and Humanities—expenditures he says are “things the American people can’t afford.”

Public broadcasting also happens to be a popular target among conservatives, who’ve long portrayed it as an example of wasteful government spending—in the mid-90s, former House Speaker Newt Gingrich proposed pulling federal funding from the CPB altogether.

Romney’s no exception on the campaign trail. As ABC News’ The Note reports, last week’s debate wasn’t the first time Romney has suggested Sesame Street seek outside advertisers to earn its keep. At a campaign stop last December, Romney told voters, “we’re not going to kill Big Bird, but Big Bird’s going to have to have advertisements, all right?”

How crucial is federal funding to public broadcasting?

Sesame Workshop’s executive vice president told CNN last week that the company receives “very, very little funding from PBS.” Indeed, the non-profit generated nearly two-thirds of its $133 million revenue in 2010 from royalties and product licensing alone, according to its website. Its executives are also handsomely compensated: former CEO and president Gary Knell (who now runs NPR) earned $718,456 in executive pay plus $270,000 in bonuses in 2010. So, as the Washington Post points out, Big Bird doesn’t exactly depend on the federal government for survival.

PBS draws roughly 15 percent of its revenue from the CPB. NPR’s revenue mostly comes from member station dues and fees, with 2 percent coming from CPB-issued grants. Member stations, in turn, receive about 11 percent in federal grants. According to this CPB report, most revenue to both public radio and television (about 59 percent) consists of donations from individuals, corporate underwriters and private grants, followed by state and local support (roughly 20 percent).

But from a leverage standpoint, PBS says it’s pretty important. Each federal dollar local stations receive generates roughly six dollars from local sources as a type of bargaining chip, according to a coalition of public broadcasting stations, producers and viewers.

Are there downsides to scaling back federal funding?

Yes. While shows like “Sesame Street” may remain safe under Romney’s plan, its viewers in remote areas wouldn’t fare as well. Public television and radio stations in poor, rural areas depend the most on federal support to survive. So while large public television markets producing more than $10 million in annual revenue require just 10 percent of federal funds to get by, its counterparts in small towns like Bethel, AL, or Odessa, TX, may very well need up to four times that much to operate.

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