“SaveKPFA” Squanders $600 Thousand Bucks

by Adrienne Lauby

Something remarkable happened earlier this year.   Two devoted KPFA listeners made bequests to KPFA in their wills totaling nine hundred and fifty-eight thousand dollars — nearly a million greenbacks. While these unexpected gifts allowed our sister station KPFT to finally replace their failing transmitter and made some improvements in KPFA’s building, most of the money vanished down a rabbit hole in routine salary expenses.2678453389_b997dd3496

It was remarkable to have such generous gifts. It was also remarkable that the SaveKPFA-led governing board allowed the money to disappear so quickly.

Here’s the details.

An Unrealistic Budget

The local station board adopted KPFA’s 2015 budget a year ago in the fall of 2014.   In what has become a yearly ritual, United for Community Radio board member, Janet Kobren, criticized the budget as unrealistic. The Save KPFA board members, as usual, claimed that the budget was reasonable because the projected expenses would be covered by an increase in fund drive income.

Why, one asks, was it reasonable when, KPFA subscriber numbers are decreasing? In only three years, KPFA’s subscriber numbers have dropped by 1800 individuals. And, what was the projection based on, given that fund drive numbers have dropped consistently over the last decade?

With the strong Save KPFA majority, the board passed the budget with the anticipated fantasy income intact.

That budget was again questioned when it went to the Pacifica National Board for approval.   The National Finance Committee asked the same questions that were asked by Janet Kobren on the local level. With several stations in the network unable to meet a payroll in the previous year and facing other financial problems, the Finance Committee wasn’t in the mood for fantasies. They said that KPFA’s income projections were over-estimated by at least $250 thousand dollars (1) and told General Manager Quincy McCoy to make cuts to bring that figure down.

Standard budget practices are contentious at KPFA. Generally, an organization makes its budget carefully, setting out the expenses it knows it can meet, and happily accommodating any additional money in a quarterly budget review process.

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At KPFA, most of the expenses are fixed. There’s no wiggle room in the electric bill and license fees, and only four managers do the administration and engineering work of a 300 person staff.  To stay within amount of money donated by the listeners, KPFA would have to lay off some of its union staff members.  Under SaveKPFA’s board majority and union leadership, this has become an unthinkable taboo.

The Bequests

Near the beginning of the year, $958 thousand in unexpected bequest income was greeted with great pleasure. For one thing, it alleviated General Manager Quincy McCoy’s immediate problem. As I said, the national board had told him to make cuts and later added that any cuts should include management. In addition, McCoy knew that after the spring fund drive, it would be obvious he didn’t have the cash to make his payroll.

McCoy knew that layoffs that would be greeted with a storm of public criticism and perhaps even the outright rebellion faced by former Pacifica Executive Director, Arlene Engelhardt, when she ordered tough cuts to save KPFA from bankruptcy in 2010. Nevertheless, McCoy began union negotiations to make the necessary cuts.

When news of the unexpected bequests arrived, McCoy not only cancelled the union negotiations but also cancelled two fund drives.   Save KPFA’s board members and staff representatives tacitly agreed with him. McCoy went on air to proclaim the fund drive cancellation and many paid staff members also made triumphant on-air announcements. They all spoke in glowing terms about “KPFA’s promise to the listeners” claiming that KPFA had cancelled the summer drive because listeners had asked for it.

There was a vague thank you for those who include KPFA in their wills in an announcement encouraging more listeners to leave some of their cash to KFPA. But, no one made it clear that the summer fund drive was cancelled because of the generosity and love of two deceased listeners.

This emotional manipulation of KPFA’s listeners hit a new propaganda low in the station that claims to “tell truth to power.”

How the Money was Spent

General manager, Quincy McCoy presented his plans for spending the money to the local station board after that spending was in progress. United for Community Radio representatives reminded the board that it is their responsibility to set budgets and asked that there be a discussion with Mr. McCoy about his plans for the money.   The SaveKPFA majority did not agree and managed the meetings to keep such a discussion off the agenda.

Here’s numbers the General Manager gave to the local board (rounded to the nearest hundred):

$119,000 help for other stations in the network2
$110,250 building improvements (carpeting, elevator repair, painting)

$30,000 new membership software
$223,400 routine payments (National Office and Pacifica Archives)3
$350,000 salaries4

$134,500 lost income due to cancelled fund drives

In short, only $260 thousand dollars of these incredible gifts were spent on one-time expenses and improvements.  $573 thousand dollars were frittered away on expenses that should have been covered by KPFA’s usual fundraising.

A Missed Opportunity

It’s fairly standard financial practice to sequester unexpected and large gifts.   It’s Bookkeeping 101 that large gifts should not be used for routine expenses.  To use gifts to push tough decisions down the road creates an unrealistic expectation that expenses can and will remain high.  It’s far better to make the tough decisions based on the routine income and use the major money for something that will strengthen the organization over the long haul.

Here’s a few things this money was NOT used for:

  1. A major outreach effort to new, more diverse and younger audiences.
  2. An improvement in KPFA’s digital and social media presence in order to connect with audiences who are migrating to wireless and web devices.
  3. A revamp of the program grid with new programs, hosts and formats.
  4. Remodeling work on the crumbling and currently uninhabitable property owned by KPFA on the corner of Martin Luther King Jr. Way and Berkeley Way.

These projects, many of them proposed as no-brainers by multiple listeners and staff members, have been on the back burner for years. Managers haven’t been able to find the money and staff time to spearhead anything beyond the next payroll.

Large gifts should be used for large projects, items that can’t be funded with the usual income. They should be used to initiate well-planned projects that might develop greater income, larger audience or be of use to listeners over the long haul. Naturally, most organizations are tempted to use an unexpected gift to relieve some immediate or chronic stress. But generations of bookkeepers and accountants have taught us that is the fast road to regret. If an organization receives a large gift, it should leave something tangible in place when it is gone.

Under Save KPFA and Quincy McCoy’s watch, these lessons have yet to be learned. Next year, unless more generous and devoted people die, KPFA will return to the grind of one fund drive after another, with the energy of paid and unpaid staff alike tied up in, (have I said this enough?) an unsustainable level of staffing.

10-18-15

  1. Link to National Finance Committee meeting.  Begin listening at 9:40 to hear the resolution.
  2.  $100 thousand was loaned to KPFT in Houston who had been operating at 30-50% of its authorized power (100 kilowatts) for almost three years in order to stay on the air despite a failing transmitter. This money allowed them to make the replacement.  Approx. $19 thousand was loaned to WBAI to help them meet an immediate legal obligation.   It’s unlikely either loan will be repaid.
  3. KPFA’s obligations to pay a share of the national Pacifica office cost as well as support the Pacifica Archives are anticipated expenses that should be covered in routine fund drive income.
  4. Salaries ($350 thousand). This figure was called a 3-month reserve but it will be, obviously, a reserve that is quickly spent.

 

photo credit: Money via photopin (license)  

photo credit: Pay Bills via photopin (license)

Union Activists Endorse United for Community Radio

The folks at SaveKPFA seem to say that anyone who opposes their ideas are union busters. Although it’s a knee-jerk response on their part, it’s a serious charge.

Read this for a comprehensive explanation of the union dynamics at KPFA, Historical Analysis: KPFA’s Working Majority Gets Screwed by CWA Job Trust.

Brief Summary:  Both paid and unpaid staff were represented by United Electrical Workers (UE). UEDue to machinations, the paid staff formed a union that excluded the unpaid staff. Now, KPFA has staff that are paid to be at the station, and are represented by a union, and are allowed to participate on the Local Station Board. That is too much control in the hands of too few.

Read recent strong criticism of Save KPFA for union busting at KPFK, our sister station in Los Angeles.

Union Supporters of UCR.  Here’s some of the union stalwarts who have endorsed United for Community Radio:

Jack Heyman, Executive board member International Longshore and Warehouse union Local 10 (retired) and chair of the Transport Workers Solidarity Committee

Mary Prophet, Member – KPFA Community Advisory Board; Steering Committee – US Labor Against the War; Delegate – Alameda County Central Labor Council; Past Chair – California Teacher’s Association Peace & Justice Caucus

Marsha Feinland, former Berkeley Rent Board member, California Teachers’ Association honored union activist

Wendel HarperMichael-David Sasson, Former President, Coalition of University Employees (CUE), Local #3, (now part of IBT #2010)

Ramses Teon Nichols, Vice President of Organizing, SEIU Local 1021, Local Station Board member from the United For Community Radio slate in 2012.

Francis Grinnon,  Communication Workers of America, Local 9415, former Vice-President, Retired Members Council

Laurence Shoup, author, Wall Street’s Think Tank, Rulers and Rebels, and other books, former member, Alameda Central Labor Council

Richard Stone,  Delegate, S.F. Labor Council;  member, Save Mid-town (San Francisco)

Dave Welsh, San Francisco Labor Council delegate; retired letter carrier, longtime executive vice president fo Golden Gate Branch 214 of the Letter Carriers Union;  helped protect union jobs from the privatization effort which was the context of the successful struggle to stop the sale of the Berkeley Post Office.  

Noelle Hanrahan, Director, Prison Radio, former KPFA programmer and union steward

A quick list of our endorsers tells the larger story.  These people are often active in union issues.  They, and the United for Community Radio candidates, know how important vibrant unions are to the crucial progressive issues we work on.

Historical Analysis: KPFA’s Working Majority Gets Screwed by CWA Job Trust

by Isis Feral
isisferal@yahoo.com

I was raised by several generations of labor organizers, and in every labor dispute my side is easily chosen. I don’t cross picket lines, and I always stand with the workers against their bosses. The current conflict inside KPFA is the first time I’ve ever seen my community divided on an issue concerning labor solidarity.

While labor struggles are usually strictly polarized, it is important to keep in mind that KPFA is a nonprofit community radio station, where the traditional class lines are much harder to draw. In theory the community is in charge of the station, or at least it should be.  It’s the community who pays the bills, and who this station claims to serve.

Community radio is supposed to be by and for the community, more like a movement than a business. The majority of KPFA workers are community members, who donate their labor for free. As some tasks require consistent, daily attention, a limited number of workers must be paid for their time, because volunteering the necessary hours would interfere with their ability to make a living. The line between workers and management is blurry, to say the least. To complicate matters, several unionized workers recently held management positions, or effectively behave like managers.
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National Lawyers Guild Letter to KPFA On The Morning Mix

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REMOVAL OF MORNING MIX FROM DRIVE TIME PROGRAMMING

The recent removal of the Morning Mix radio program from the 8:00 AM time slot on KPFA has raised some concern at the San Francisco chapter of the National Lawyers Guild (“Guild”). We write this letter because KPFA and its free speech mission, are important to the Guild and to many activists that either work with, or are represented by, Guild members.

The Guild views KPFA not as simply another movement organization, but as a key part of the information commons. In that sense, KPFA is similar to a public utility — it is for the public benefit. KPFA policies on openness and actions regarding access to its airwaves affect all of us striving for a better world.

Like KPFA and Pacifica, the Guild was created with a particular mission: it was founded in 1937 as an alternative to the American Bar Association’s exclusionary practices and political orientation, and the Guild was the first integrated bar association. KPFA was launched in 1949, three years after pacifist Lew Hill created Pacifica. The aim of the station has always been to promote cultural diversity, to promote pluralistic cultural expression,  to contribute to a lasting understanding among diverse constituents, to maintain freedom of the press, and to create a forum for various viewpoints.

At KPFA’s core is the concept of pacifism or non-violence. Non-violence is often mistaken for being simply the absence of, or opposite of, violence. Instead nonviolence is a systematic framework of both conceptual principles and pragmatic strategies to reduce harm and promote positive peace at the personal, community, national and global levels. Contrary to popular belief, non-violence requires boldness and courage. Moreover, it is easy to fall astray from the path of non-violence in the pursuit of financial stability or in response to political pressure.

With this framework and history in mind, we raise our concerns about an uncomfortable pattern of events that have transpired at KPFA that appear to be the antithesis of non-violence. We do not list these concerns to cast blame, or to impose our set of values on another organization. We list these concerns because our collective silence could be perceived as approval or consent. We consider individuals and organizations on both sides of this debate as both friends and allies. It is in the spirit of a friend and ally that we speak about the recent decisions at KPFA, and seek to build trust through transparency.

The Morning Mix was unique within the KPFA lineup because it was hosted by a diverse group of community volunteers with programming important to community members. The Morning Mix often reported on local political movements that were under-reported elsewhere. One such issue is tar sand extraction and transportation by rail to refineries. Andres Soto, one of the hosts of the Morning Mix, and a Richmond resident and activist, often reported on this issue. He frequently reported on Chevron’s efforts to refine tar sands in Richmond which will have a direct impact on the people of Richmond and surrounding communities. Across the nation, we see a growing movement on this issue, and the Guild has recently received reports of brutal arrests of people who oppose tar sands. Instead of supporting this excellent reporting done by Andres Soto on this issue, KPFA has essentially silenced him by eliminating the prime time Morning Mix program. It is doubtful that the new paid host from LA will report on local efforts to oppose refining tar sands in the same way.

We could go through other hosts and programs on the Morning Mix, and discuss how each is connected to a local community and movement, however the point is that KPFA’s actions have actually decreased the diversity of speech on its airwaves.

As a community-based radio station dedicated to pluralistic expression, it would seem that KPFA would wish to avoid even the appearance of decreasing diversity, or of favoritism, or of bias. Gentrification of a neighborhood transforms it by displacing local residents, which in turn erases local character. Defenders of gentrification support the transformation, claiming that it increases public safety. Some at KPFA have described the removal of the Morning Mix as a ” move towards professionalism”. However we fear that “professionalism”, like “public safety” is pretext. The unqie character of the Morning Mix came from its local voices, accents, topics and perspectives. KPFA erased this local character with a single paid host out of LA.

Another reason put forth by by KPFA management is that the LA program will allegedly bring in more revenue. Although people can and do argue about interpretation of financial figures, the financial documents produced at the KPFA Local Station Board show that the Morning Mix was pulling is weight during fund drive. Thus, KPFA’s reliance on a specific interpretation of its financial figures, when there are other valid interpretations,  is a factor that creates the appearance of viewpoint bias. For example, the KPFA financial documents do not take into account the expenses incrred by having paid hosts. Thus, the financials purport to measure programs in terms of revenue generated, and disregard specific costs incurred by having paid hosts.

Moreover, and this point cannot be emphasized too much, KPFA can not and must not base all of its programming decisions on finance alone.

Although this letter was prompted by the removal of the Morning Mix, in the course of drafting this letter, we have learned of complaints that KPFA management has silenced specifically black programmers and/or failed to provide support for critical black programming or programming on critical local issues relevant to black communities. We are concerned that the removal of the Morning Mix, a show frequently hosted by black local hosts, is part of this pattern. We understand that KPFA is filling the Morning Mix time slot with a show hosted by a person of color, however the show is not produced locally, and does not have as close a connection to Bay Area black communities, and that features voices of black programmers, and not assume that programming by or for people of color generally will necessarily cover these issues.

KPFA, as part of its mission, must be ever vigilant of protecting diversity of viewpoints. Removal of the Morning Mix has narrowed the range of speech on its airwaves.

KPFA appears to promote radio programs that would prefer to talk about global economics, rather than race and the local displacement of black and immigrant families. It is an agenda that appears it would rather talk about gender discrimination in the boardroom, but not talk about the impact of gender, race and poverty on the young girls caught up in sex trafficking on Bay Area streets. It is an agenda that appears it would rather solve problems abroad, rather than those at home.

The Guild is an organization dedicated to human rights over property rights, and our collective conscious is touched when KPFA – a radio station dedicated to promoting diversity – consciously or unconsciously engages in viewpoint suppression. The allegations may be uncomfortable, however we in the Guild believe that it is through transparency and discussion of diverse viewpoints that this situation can be resolved.

In solidarity,

Sharon Adams, Vice President

National Lawyers Guild, Bay Area Chapter

August 12, 2014

NLG letter re Mix & KPFA