Lehigh Valley Public Media (known by most as PBS 39) spent $15.15 million in fiscal 2023, $8.66 million more than it took in.
One doesn’t need an MBA to realize that is not good. How can a small outfit in South Bethlehem burn through almost $1,000 per hour for an entire year?
Because this outfit is public — it has an $80 million endowment that is public money — minutes of its board meetings are public, and people from the community may attend its board meetings.
I’ve gone through them and attended the last one virtually.
There is talk of missions statements, and being “proactive” and the usual jargon. I will avoid most of that. Items from meeting minutes will be between quotation marks.
So, is this a fund-raising outfit that puts out some media content, or is it a publicly funded media company that will always lose money? Who’s running it? Is it sustainable, or will it fritter away its $80 million public endowment?
Here’s a look at the minutes:
May 22, 2023: “Mr. Fallon (Tim Fallon, then president and chief executive, now CEO Emeritus) praised our team for beginning LehighValleyNews.com, as digital is where the future is headed, while television and radio are declining. The new generation is not expected to begin to watch PBS programming; we must work on different opportunities now.”
–Editor’s note: So, the organization founded as WLVT Channel 39 started talking about moving away from television and radio. That could be a good move, or it could be “style drift.”
Local media barely survives. I’m a big fan of local reporting, but is spending on it just throwing more money away?
Sept. 26, 2023:
“Another important issue the Board Affairs Committee discussed is the lack of attendance at committee meetings; it may be a good idea to look for actively employed individuals to serve on the board, as some retirees are unable to attend due to travel.”
Red flag. Board members are not involved. At public groups, often real work is done in committees and board meetings are rubber stamps.
Here’s a good move the board made: “… the Endowment will be removed from the Income Statement as revenue. The focus for these meetings going forward is cash flow.”
That should bring clarity to financial statements.
Also, I will note that new board members have been added. If board members aren’t doing their job, then give them a trinket, thank them and replace them.
Also at the September 2023, talk of “metrics” and “leverage.” I’d call it “spaghetti on the wall” stuff. Toss stuff out, maybe it will stick.
And finally some blunt talk: “Ms. Yee (Susan Yee) wants it stated for the record that the 2023 financial results were not acceptable to the Board; however, the 2023-2024 budget plan looks promising.”
Apparently that has not been the case. Jobs have been cut, and more expense cuts are on the way. Also, turnover at the top.
Then November 2023, and reality starts to bite:
“(A former employee) shared that the ratings for PBS39 television viewership have gone down, month-over-month and year-over-year.”
Those Agatha Christie reruns perhaps are not resonating. Page views and unique visitors were also down in October 2023, leading to talk of a new digital strategy.
Also at the November 2023 meeting: “Ms. Yee noted the previous Board resolutions to preserve the principal of the endowment, and that no use of the Line of Credit can be made without the written approval of the Board Chair and Treasurer at least 30 days in advance. The Board continues to retain oversight as to how withdrawals are made.”
The board drew a line. Let’s give credit where it’s due.
Also at that meeting, “the partnerships we have had with Iron Pigs, the Chamber, and ArtsQuest have not been successful.”
I don’t know what that means, but it’s not good.
January 2024 meeting: This one is pretty dull, considering all that was happening.
March 2024 meeting: Fallon and the now-former chief financial officer were thanked for their service. Fallon is now CEO Emeritus, and who’s actually running the organization is a mystery, and the other top three officers are no longer on the staff list.
And things get serious: “At the last Executive Committee meeting, it was determined that the organization has cash needs of $1.438 million dollars for the remainder of the fiscal year. This week a withdrawal is needed to make payroll. (The acting financial person) added that this amount was determined under a worst-case scenario. Mr. Donnelly (board member Todd Donnelly) noted that each reforecast needs to be continuously corrected as the organization has come up short each time.”
Each time.
Then there was talk of “seed money to acquire additional funds.” Right. Spend money in hopes of getting money.
The board also discussed a request to Easton for a $10,000 grant. I’m sorry to say, the city did give $8,000, throwing more money at this cash-burning machine.
Minutes of the July meeting aren’t available yet, but I listened online.
It was staggering.
LVPM shifted money to make payroll. There was talk of remind people what their goals are — it seems a little late for that — and of potentially more cuts in expenses.
A staff of 80 was, as of July, a staff of 60.
Contact your city, county, state and federal officials and ask them to look into what’s happening. I am doing that and have started to get responses. If you know a state representative or senator, ask them not to give PBS 39 money until its house is in order.
This organization needs outside oversight and an operations audit.
The path it is on is not sustainable.
Meeting minutes are available on the WLVT.org website. Look for the board of directors and scroll down to minutes. Or:
Lehigh Valley News Briefs 