Help Prevent the Shutdown of KPFK!
If KPFK Doesn’t Reduce Expenses it may be turned into a ‘Repeater’ Station*
A ‘Repeater’ Station is a station that doesn’t produce programming
but simply repeats content from a different station.
Dear KPFK Member,
As a KPFK Member you should know that serious revenue declines threaten the future of KPFK and Pacifica Radio. Expense reductions need to be made.
Membership, listenership and income have been decreasing at KPFK over many years. Per day fund drive totals have been going down. These declines have been masked by lengthening fund drives and by greater and greater dependence on premiums not directly related to our programming. We are now at a crisis point. We are spending much more than we make.
On June 11, 2020 the Pacifica National Board (KPFK is one of 5 radio stations owned by Pacifica) agreed that expense cuts of at least 30% at KPFK were urgently needed and directed the KPFK GM and the Pacifica interim Executive Director to make those cuts as soon as possible.
Click below, to read the full text:
June 11, 2020 Resolution to Cut 30%
Here is the June 11th motion that was approved by the National Finance Committee and then adopted unanimously by the Pacifica National Board:
Whereas: Currently the National Office has over $500,000 in outstanding payables. We owe NETA $206,000 currently as of June.
KPFK was unable to make its payroll in mid-April. About $45,000 had to be taken from an Affiliate Program bank account to make that payroll.
KPFK is at least 5 months in arrears on its Central Service payments. It currently owes $184,000 in Central Service payments. The KPFK Business Manager stated on May 14th that up to the end of April 2020, KPFK listener support had declined by 11%, its total income had gone down by 22%, although its payroll had increased by 5%.
The KPFK Business Manager stated that this decline had very little to do with the Coronavirus epidemic as these numbers are mostly from before the lockdown.
In the last 2 months KPFK’s income has declined precipitously. KPFK is currently bringing in only half the income necessary to meet its expenses. This means that KPFK is not able to make Central Service payments currently, is backlogging bills and is having trouble meeting its own payroll. KPFK’s monthly expenses are about $300,000. KPFK’s income has only been $150,000 per month for the last 2 months.
It is unclear as to whether Pacifica will receive any emergency stimulus loans or if there will be any other significant influx of revenue sufficient to make up for the heavy loss of KPFK Central Service payments.
Compounding this is the fact that every station, with the exception of KPFA, is seriously in arrears in its Central Service payments, with the possible exception of KPFT.
We have no reserves. If our financial situation deteriorates any further we may be forced to sell one of our buildings.
Therefore, be it resolved that significant expense cuts be made at KPFK as soon as possible. These cuts should be at least 30%. Expenses must be less than income as there are no resources to cover any shortfalls.
Further, all units (excluding the National Office) should provide a plan within 1 week to the NFC, the PNB, the Management Team and the iED that balances expenses and revenues if the units in the preceding six months have had expenses that exceeded revenues. (ie, if a station’s expenses are exceeding its income by 10% the plan should show an expense decrease of 10%.) As KPFK is currently running a $150,000 per month deficit, it is absolutely urgent that expense cuts be made immediately at that station. Other fundraising plans should be encouraged, but they would not be able to cover shortfalls of that magnitude. Thus, substantial expense cuts are unavoidable.
The full minutes for June 11, 2020 can be found at:
https://kpftx.org/archives/pnb/pnb200611/pnb200611_6596_minutes.pdf
Email the KPFK General Manager and the Pacifica Radio Executive Director to urge them to cut expenses rapidly without laying off on-air personalities or staff who raise large amounts of money.
This communication has not been paid for by the KPFA, KPFK, KPFT, WBAI, WPFW Station LSB or the Pacifica Foundation. It is a campaign communication distributed by or on behalf of Social Uplift Foundation. Otherwise, it has no affiliation with or endorsement by the KPFA, KPFK, KPFT, WBAI, WPFW Station LSB or the Pacifica Foundation. Please note that you are receiving this email because you are on the KPFA, KPFK, KPFT, WBAI or WPFW Station membership list.
Although expense cuts of about $450,000 calculated on an annual basis have been made, these cuts are not adequate. Additional reductions are needed. There are over 30 paid staff members at KPFK. Expenses can be reduced without laying off any KPFK paid programmers or high-income producing staff members.
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Anita Sims, Pacifica Interim Chief Financial Officer, estimated a few weeks ago that KPFK would spend $115,000 more than it raised in income in December 2020 and will most likely not be able to fully fund upcoming payrolls.
A group called “New Day Pacifica” has started a petition drive that offers false, undemocratic solutions to solve the problems facing KPFK and Pacifica. This putsch could cost the Pacifica Foundation (KPFK’s parent nonprofit) about $150,000. For full details, see: Bad Bylaws Take 2 and The Fight for Community Radio.
Please don’t sign the “New Day” petition. If you have already signed, please UNSIGN.
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KPFK has been spending between $70,000 and $90,000 EACH MONTH more than its income for at least 10 months. The KPFK Business Manager stated that he thinks the monthly shortfall is about $75,000, whereas the KPFK Treasurer estimates that it is more like $100,000 per month. You can hear them discussing this at the most recent KPFK Local Finance Committee meeting held on Jan. 13, 2021.
KPFK Finance Committee
You can also click below, to read the most recent KPFK Treasurer’s Report.
Most Recent KPFK Treasurer’s Report
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KPFK has had to borrow funds from other stations and units to meet its payroll several times in the last few months. In December KPFK had to borrow $25,000 from KPFA and $17,000 from the Pacifica Affiliates Network to meet its payroll.
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In his most recent General Manager Report, Anyel Fields stated, “We closed our 2019-2020 fiscal year in September with a projected shortfall of $697,577.”
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Mr. Fields also stated that KPFK income dropped by $1 million between the last fiscal year and the fiscal year that just ended on September 30, 2020. Income declined from $3.7 million to $2.7 million.
Click below, to read the most recent KPFK General Manager Report:
Most Recent KPFK General Manager Report
Consider nominating yourself to serve on our KPFK Local Station Board. Elections for local board members will begin in just a few months! The official election website hasn’t opened yet, but King Reilly would be happy to give you information. Email King at: kingreilly@roadrunner.com
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KPFK owes about $300,000 to the Pacifica National Office which imperils the entire Network. (According to the KPFK Business Manager in the KPFK Finance Committee meeting of Jan. 13, 2021 the exact amount is $294,632.) Pacifica owes its accounting firm over $200,000. If this firm stops work for us it could jeopardize our nonprofit status, delay our audits and violate the terms of our $3.2 million loan.
The Pacifica National Office no longer has reserves to cover KPFK shortfalls. According to Anita Sims, Pacifica interim Chief Financial Officer, funds will have to be taken from KPFA to cover them.
KPFK has a narrow window of time to maintain its independence. All efforts to improve KPFK income have either failed completely or been inadequate to make up for revenue declines.
If action is not taken to reduce expenses immediately drastic measures very damaging to KPFK may take place. If KPFK can’t raise enough money to pay its expenses it may have to be shut down or its building sold.
Sharon Adams, KPFA Treasurer, has stated several times that any station that can’t pay its bills should have all of its staff laid off and be converted to a ‘repeater’ station. You can hear her saying this in the National Finance Committee meeting of Oct. 27, 2020.
Listen to the clip:
What About COVID Relief Funding?
Pacifica will most likely receive about $1.2 million in funding through the Paycheck Protection Program or the Covid-19 Economic Injury Disaster Loan program (EIDL). This is good news! A couple of things should be noted. PPP funds are forgivable. EIDL loans are NOT forgivable. It would be beneficial if Pacifica can secure a low interest EIDL loan of $1 million or $2 million amortized over 30 years. However, that borrowed money shouldn’t be used to cover chronic operating deficits. Covid relief funding will last for only about 2 1/2 months. We need to face reality, make necessary budget cuts and stop kicking the can down the road!
(Note: Although great care has been taken to be as accurate as possible, there may be a mistake or two in this email. Please contact us if you notice any factual errors.)
Other ways you can help:
Join our Community Advisory Board. For info contact Beth Von Gunten: MeinersCanary@matilijasustainability.org
VOLUNTEER to help our Local Board or to assist KPFK: People are needed to help with fundraising and other tasks. Our local board could use a Secretary. If you would be willing to volunteer your skills at the station, give us your contact info and availability and we will put you on a list of people willing to help with our plumbing, electrical, carpentry, public relations, accounting, computer programming, social media development, or whatever you are skilled at. Email us: info@socialuplift.org or just go directly to: https://www.kpfk.org/volunteer/
KPFK is a community radio station. Your help is needed and appreciated and your opinions are taken to heart by Board Members, Management and Staff.
In peace,
Grace Aaron, outgoing Pacifica National Board Director
(It has been my pleasure to serve on the Pacifica National Board for the last 5 years with many wise and dedicated Directors from our 5 Stations and Affiliates. I resigned from the KPFK Local Board and the Pacifica National Board in December 2020 as our Bylaws prevent me from serving more than 5 consecutive years and resigning a little early gives me the option of running for the KPFK Local Board later this year.)
Also signed by:
Fred Blair, KPFK Treasurer
King Reilly, M.D., long time KPFK supporter and volunteer
(Contact us if you have any questions or if you’d like to add your name as an endorser to this email: info@SocialUplift.org)
