KNAU and Arizona News
3:56 pm
Mon March 4, 2013

Sequestration and KNAU

Dear KNAU Listeners,

As we mentioned on-air this morning, we at KNAU have been in the process of examining the impact of the sequestration on the station.

Community Service Grants from the Corporation for Public Broadcasting are uncertain after this April.   We want listeners to know what the plans are in response.

The Corporation for Public Broadcasting planned ahead for the sequestration cuts that went into effect on March 1, 2013 and distributed 70% of the grant funds earlier this fiscal year.  However, KNAU still stands to lose a portion of its remaining CPB grant for this fiscal year and funding beyond April is uncertain as the federal budget continues to operate under a Continuing Resolution.

Additional cuts may be made after March 27 when the current Continuing Resolution expires and a formal budget for 2013 must be approved by Congress.

The most recent serious threat to federal funding of public radio happened in March, 2011, when the House passed a bill calling for the defunding of Public Broadcasting.  That bill was rejected by the Senate.

The CPB and NAU have been helping KNAU plan for the future.   A station impact study was conducted by the CPB in 2011/12 to determine how much it would cost KNAU to replace federal funding support.  The station would need to raise nearly $450,000 in private support in order to cover the $225,000 grant support from the CPB, and we have begun planning for this accordingly.

KNAU began building a reserve fund for immediate or urgent needs that arise unexpectedly, such as a longer-term or more-severe sequestration.  A quasi-endowment fund was also created to ensure the longevity of the station.  Both funds are managed by the NAU Foundation in collaboration with KNAU. 

Private support continues to be the largest funding source for KNAU; nearly 70% of support comes from individual members and business underwriters throughout Northern Arizona. 

Sustaining membership support is the most reliable income source we have from our members and many of you have responded.  For that, we are grateful. 

Although these are uncertain times, be confident that we are doing everything we can to bolster our private support and that it is our top priority to continue to manage your investment in KNAU wisely. 

Sincerely,

Shelly Watkins

Interim General Manager
KNAU Arizona Public Radio