Lehigh Valley Public Media Loses $1.1 Million in Federal Funding, Keeps Losing Money But Has $78 Million in Investments

Aug. 4, 2025

— Jeff Ward, Lehigh Valley News Briefs

Lehigh Valley Public Media, also known as PBS39, has lost $1.1 million in annual federal funding and keeps losing money on its operations, but it still has about $78 million in investments.

That pile of money is about twice the endowment of Cedar Crest College in Allentown. It came from a 2017 sale of public airwave rights to make space for wireless communications.

Still, the organization’s mission seems to be raising money. On top of that, it operates a digital media outlet, Channel 39 and WLVR 91.3 FM, a radio station that is owned by Lehigh University.

LVPM’s board of directors met July 28 and discussed the need to raise money to replace the seven-figure federal cut. It is worth noting that the media outfit has not been living within its means for years, cushioned by steady gains in the stock market and thus its investments.

On the plus side, there is a lot less happy talk at board meetings and in LVPM communications. Perhaps the loss of federal funding is the shock this outfit needs as it seeks to be relevant.

“We have cleaned up our financial results, fairly dramatically,” board Chairman Michael Keim said at the meeting. He said LVPM has to show it brings value to the community as it seeks money.

The organization had an operating loss of $4.6 million in fiscal 2025, according to numbers presented at the meeting. In fiscal 2023, LVPM lost $8.66 million.

Back to fiscal 2025, operating revenue was $3.96 million, operating expenses were $8.5 million. Most of the expense came from salary and benefits, although LVPM has cut staff from about 80 a couple years ago to 48 as of today, based on its website.

As noted above, LVPM received the airwave-auction $82 million windfall in 2018 and has been tapping it regularly to make up shortfalls. To its credit, the board of directors has put limits on who can decide to take money out.

The money could have been invested with a reasonable goal of $5 million in return annually, but it’s hard to discern what the endowment policy is. I’ve asked.

What LVPM has not had to face is a prolonged bear market. The S&P 500 has been going up since the financial crisis of 2008. There have been bumps along the way, such as the big fall during the pandemic, but the last 17 years have been good for investors.

If there is another Lehman-type event, if the market were to drop for an extended period, that could hurt donations and how much can be taken from savings.

As for WLVR, the radio station Lehigh University owns but LVPM for some reason took over in 2019, nothing about its future came up during the board’s discussion. I asked during the Q&A portion about a $462,000 unbudgeted expense for WLVR.

Keim said LVPM had not budgeted to operate WLVR for the full fiscal year, thus the expense. Back in January, the board said there would be a quick resolution to WLVR’s fate, but since then nothing official has been said.

Obvious options are: WLVR stops operating; Lehigh takes it back, or LVPM keeps running it. There are no doubt other possibilities, but right now neither LVPM or Lehigh seems to want the station. The two organizations have been talking for months.

The board also welcomed Hasanna Birdsong, new president and chief executive. Her appointment was announced in June. She discussed fundraising and sponsorships.

She said the federal funding cut has drawn attention to public media and is an opportunity to raise money. Lemonade from lemons? Maybe. LVPM is trying to raise $350,000.

The board’s next meeting will be at 1 p.m. on Sept. 29, in person at the South Bethlehem headquarters of LVPM.