Funding in FY 1978-1980 reflects the cost of special support projects. 1) To provide leadership in innovative uses of new and existing 3) To provide assistance through various projects to radio 4) To provide an opportunity for the screening and potential Fiscal Year 1981 In FY 1981 at the higher level CPB would fund demonstration projects to improve local radio program services.. All other projects are budgeted to reflect only cost of living increases at both of the funding levels. This program category includes all of the Corporation's staff and support costs not directly connected with programs specifically identified--Public Television; Public Radio and other support activities. Included are costs of the Board of Directors; the President's Office; the General Counsel's Office; such general administration costs as personnel, budgeting, auditing, accounting, administrative services, management planning and related items. It makes use of some outside auditing, legal, and other consultant services to augment its permanent staff available for general administrative support. Amounts included in this category are included in financial plans so as to enable the Corporation to meet contingency needs and new opportunities without having to reprogram amounts budgeted for other purposes. Amounts shown may be used for any activity or for augmentation of Corporate reserve amounts. In the past, the primary beneficiaries of these reserve funds have been activities in direct support of TV and radio, and satellite interconnection projects. A major consideration for fiscal years 1978 through 1960 is the contingency that satellite projects for both TV and radio may require more funds than originally planned. A "worst case" projection must also take account of the possibility that advance-year appropriations may not continue to be authorized, in which case borrowed funds would become due over a two-year period. Prudent planning calls for the establishment of reserves to minimize the impact on public broadcasting should these potential contingencies materialize. Fiscal Year 1981 At the $210 million ceiling requested, $5.7 million would be available for contingency requirements or for supplementing amounts to be used for priority ongoing activities-- probably for direct support of TV and radio activities. In addition, demonstration projects funded in earlier years may require some of these funds if the demonstrations prove successful. These include full public broadcasting coverage using high powered satellites, nationwide fund-raising support for radio, and support of recruitment activities for women and minorities. At the $172 million Administration ceiling, a reserve of $3.5 million is projected in order to provide some protection against contingencies or to supplement support activities 25-260 (Pt. 7) O-7840 DISCUSSION OF APPROPRIATION ESTIMATES Introduction Since its enactment in 1962, the Educational Broadcast Facilities Act has been administered by the Department of Health, Education and Welfare. During that time, $132 million has been granted in support of licensed public radio and television. funds have made an important contribution to the national capital investment in public broadcasting. These The appropriation for 1973, the last year for which appropriations were made, is $18 million, compared to $30 million authorized by the basic statute. The authorization for appropriations expired at the end of 1978 and at the moment there is no funding authority for 1979 and later years. However, the President has submitted to Congress proposals to extend and enlarge the program, beginning in 1979. Under his proposal, the program would be expanded to include support to non-profit educational entities and state and local governments for non-broadcast technologies and facilities planning. An important feature of the President's proposal is to change the jurisdiction of these activities from HEW to CPB. The President's budget does not include a specific request for an appropriation for 1979, but it does assume enactment by the President's legislative proposals and eventual funding from the President's 1979 reserve for contingencies. -2 CPB Position on Legislative and Funding Authority The Corporation for Public Broadcasting concurs in the President's proposal to expand the program and to change its jurisdiction from HEW, and place new authority in CPB, effective in 1979. It seems inherently sensible that this important public broadcasting support program should be administered by the same organization, CPB, that is responsible for the national support of all aspects of public broadcasting. However, CPB has several concerns that have a bearing on the proposed change in program responsibility as well as the future funding of the program, as follows: 1. CPB believes that the 1978 level of funding, $18 million, is inadequate to finance an expanded program. For example, to attempt to finance such new areas as non-broadcast technologies within this level of funding would erode the basic program and have the net effect of lowering the amount of money available for local stations. For this reason, CPB believes it is essential to provide additional funding authority on an incremental basis to finance the new activities that would be supported under the President's plan. CPB believes that in organizing the change in program responsibility care should be taken to protect the non-governmental character of CPB itself. With proper consideration, CPB believes that this can be achieved. 2. CPB Request For the reasons cited above, CPB proposes that the 1979 appropriation level be at least $30 million, compared to $18 million for 1979. In fact, $60 million would only satisfy the existing backlog of applications and take into consideration proposed expansion of |