which Congress and the Administration had promised us and for which we had planned. We earnestly request that that $10 million not be forever lost to public broadcasting's viewers and listeners. Since the Administration's total budget request for CPB in This Fiscal Years 1973 and 1974 equals $90 million ($45 million each year), the $10 million in question could be added to the 1974 budget figure and only exceed the planned two-year total by $5 million. year's $35 million and the $60 million provided for in S. 1090 equal $95 million, or only $5 million more than the Administration's budget request in Fiscal Years 1973 and 1974. We believe this growth is reasonable and not excessive. If, however, we are limited to a budget of $45 million as provided in the Administation request - we will face yet another year of little growth in public broad casting. Mr. Chairman, I mentioned the giant strides made by the public broadcasting industry during the last few weeks. I refer, of course, to the recent seven-point agreement reached between CPB and PBS wherein areas of responsibility have been clearly defined, whereby dollar expenditures at this very moment are being calculated for apportionment, and through which the efficiency of the system the decision-making process has been tremendously enhanced. The two Boards are communicating as they have never done before. The confusion and uncertainty are gone. The improved representation of public radio stations through its newly formed Association of Public Radio Stations is another example of this progress. first time, the industry has itself together. For the I believe the partnership represented here at this table will prove to be a splendid revitalization of the total public broadcasting system. I think that Mr. Rogers will agree with me that we now have not only the capability but the determination to bring to the American people the best public broadcasting service in the world. Community Service Grants In planning for Fiscal Year 1974, we have placed our highest priority on increasing direct support to local stations through Community Service Grants, those funds which local stations use to augment their operational budgets. In the past, because of limited funding, a significant portion of CPB funds has had to be devoted to two basic purposes of the Public Broadcasting Act of 1967: a distribution service and a basic core of programs. Now, however, with the forging of a new partnership between CPB and PBS, we stand on the threshold of a new future for public broadcasting. In a joint resolution recently passed by their respective Boards, CPB and PBS have agreed among other things that: "CPB will provide the mutually desired bedrock of localism by unrestricted grants to the public television stations, under a formula accepted by CPB and PBS, aggregating annually not less than 30% at a $45 million level, increasing proportionately to: 40% at a $60 million level, 45% at a $70 million level, and 50% at an $80 million level." These figures are for television only and do not reflect the additional funds necessary to fulfill CPB's commitments for radio community service grants. service grant needs are combined, we estimate that the Corporation's commitments will be 49% of $60 million for Fiscal Year '74, and 56% of the $70 million for Fiscal Year '75. When radio and television community Because of the short period of time that has elapsed between the signing of our agreement and these hearings, Mr. Chairman, we have not concluded our negotiations on dollar allocations. Those figures will impact considerably on our budget and will be supplied to this committee immediately upon their resolution. guidance, in the meantime, we have supplied the committee with the figures that were developed prior to the CPB/PBS agreement. For your It is expected that these new commitments will cause CPB to restrict its level of funding for those activities other than community service grants. If, for example, CPB funding of national program services must be reduced or remains at current levels because of these enlarged community service grant commitments, it is felt that through these same grants the quality and scope of local television programs should be such as to be suitable for other than local consumption, in effect supplementing the national program service. Last fall, for instance, CPB wanted to experiment and see what type and quality of public affairs program local stations could produce for national programming. Grants totaling $400,000 were awarded to 22 stations throughout the country for the production of individual half-hour programs that focused on ongoing local issues or issues that had been resolved on the local level yet were of significant national interest. One station was selected to "package" the series, adding uniform series identification, titles, and credits, and maintaining technical control. The series, called "Turning Points", began on March 7 and is now being aired across the country. The quality of production has been consistently high and meets exacting standards of the national service. In addition, Mr. Chairman, we are hopeful that non-Federal sources of funds such as foundations and corporations will be found to augment CPB's national programming budget. Instructional Programming Mr. Chairman, we should always keep in mind the fact that the major share of public broadcasting should be for educational benefit. Indeed, before there was public broadcasting there was educational broadcasting. The great majority of public television's offerings are educational in a broad sense, and fully 34% of all the on-air hours of all public television air time was strictly instructional during Fiscal Year 1972. During the months when public schools are in session, the average broadcast hours for instructional programs reached 43% of all hours of public broadcasting. 38% of all funds the Cor poration spends on national programs are invested in quality educational programming for children.. In absolute numbers of hours also, instructional programs have been rising: in FY 1970, there were 201,000 hours of instructional television programs broadcast; in FY 1972 there were 241,000 hours for this type of programming. Although the Corporation has helped to fund such national productions as "Sesame Street", "The Electric Company", and "Mr. Rogers' Neighborhood", the heart of the system is still in the local community. That is where the initiative lies. That is where the overwhelming proportion of instructional programs is produced. The national offerings tend to encourage the assurance that localism does not become parochialism. In 1972, the Corporation began research directed toward development of a series of new educational programs for adults. The goals of the proposed Adult Learning Program Service were widely accepted both within the public broadcasting and the educational communities. Research confirmed the public need for the project. However, the first attempts to develop in detail the requirements for an effective series of programs were reviewed by an outstanding panel of educators and the Education Committee of the CPB Board of Directors and were found to require additional study. Our distinguished Chairman, Dr. James Killian, and former Board Chairman Mr. Frank Pace have recommended that research into the problem of systematic development of effective programs for be from non-Federal sources. Public Participation One of our most important and productive functions, Mr. Chairman, is our liaison with groups whose views represent those of the viewing and listening publics. There are 35 national organizations who are members of the Advisory Committee of National Organizations of the Corporation. Fourteen new members were recently accepted by ACNO bringing the new total to 70. Representing national organizations as diverse in interest as the American Bar Association, Consumer Federation of America, American Medical Association, AFL-CIO and 44 others, the Committee meets regularly with the Corporation and provides valuable counsel to our decision-making process. The advice and |