[PPT] - Community Service Grant 101 Kate Arno Director, TV CSG Policy & PowerPoint Presentation

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Community Service Grant 101

Kate Arno Director, TV CSG Policy & Review Andrew Charnik Director, Radio CSG Policy & Administration

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576 CSG radio and TV grantees

perating 1,488 stations

Photos courtesy The Nebraska Network

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170 TV Grantees

52 33 11 4 Community University State Local

Licensee Type

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406 Radio Grantees

174 186 14 32 Community University State Local

Licensee Type

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No more than 5% No less than 6% 25% (of 89%) Television

$ 297,037,500

CSG

$ 222,778,125

Unrestricted CSG

$ 69,308,750

Programming

$ 74,259,375

Federal Appropriation (FY2017)

$445,000,000

Station and Programming Grants

$396,050,000

System Support

$26,700,000

CPB Operations

$ 22,250,000

Radio

$ 99,012,500

Programming

$ 6,930,875

Restricted CSG

$ 22,772,875

75% (of 89%) 75% 25% 70% 7% 23% 89%

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FY 2017 CSG Cycle

Submit 2015 AFR/FSR

FY-end + 5 mos.

FY 2017 grant

ffers
Nov. 2016

Certify and accept CSG

1st payment

SABS/SAS/LCSR

submitted

Feb. 15, 2017

Submit 2016 AFR/FSR

2nd payment

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Eligibility Criteria

cpb.org

– CSG General Provisions and Eligibility Criteria – Communications Act Compliance

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Eligibility Criteria

Communications Act Reporting Diversity Annual Training Minimum NFFS Programming & Broadcast Schedule License & Operations Transparency

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Qualifying direct, indirect and

in-kind revenue from sources not federal government or PBEs

Defined

Determines incentive portion
f CSG award

Importance

$800,000 3-year average NFFS
CSG 2017 minimum NFFS

based on FYs 2013, 2014, 2015 average

Minimum

Eligibility: Minimum NFFS

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TV CSG Program

Photos courtesy New Hampshire Public TV

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Community Service Grants

Base Grant

Fixed amount

Incentive Grant

Matches a qualifying station’s NFFS

Special Grant

For eligible stations

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Equals 0.11% of Federal appropriation
FY 2017 base grant: $489,500 (anticipated/not final)
131 stations to receive a full base grant
39 stations in 17 multi-provider markets share
ne base grant/market

Base Grant Incentive Grant Special Grant

Standard Base Grant

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Motivates stations to generate NFFS.
Calculated on a station’s NFFS.
In FY 2016, for every NFFS dollar, a TV

grantee received approximately $0.13.

Base Grant Incentive Grant Special Grant

Incentive Grant

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Universal Service Support Grant
Program Differentiation Incentive
Distance Service Grant
Healthy Station Initiative*

Base Grant Incentive Grant Special Grant

FY 2017 Special Grants

* All eligible stations receive funding but must apply.

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Rural- stations receive

funding in proportion to the rural population served (per US Census data).

Small - stations in small

markets (fewer than 1M) receive funding in proportion to the non-

verlapped population

served.

Grants made in

proportion to populations served.

$8.9M pool for FY 2017
= 2% total CPB

appropriation

Base Grant Incentive Grant Special Grant

Universal Service Support Grant

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Program Differentiation Incentive

Secondary stations in multi-provided markets stations are eligible
Self-certify programming is differentiated from other stations in market
Station’s NFFS up to the first

$2M X 1.75

Station’s NFFS between $2M

and $4M X 1.25

$4M to 21 stations in FY 2016
1. Signal > 50%
f population

served by another station

2. < 20% of population

served is unduplicated

Multi-Provider Market

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4-year phase out: Review one base grant per multi-provider market policy after spectrum auction.

Base Grant Incentive Grant Special Grant

PDI

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Distance Service Grant

Primarily supports state networks.
For stations operating 3 or more transmitters.
Tied to base grant - fluctuates per appropriation.
39 stations received $5M in FY 2016 grants.

3 4 5 6 7 8 9 10 11 12 transmitters 5% 7.5% 10% 20% 30% 40% 50% 60% 70% 80%

f standard base grant

Base Grant Incentive Grant Special Grant

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Joint Master Control

Support stations in

joining JMCs

Two $75,000-payments
Executed agreement

with JMC

5-year commitment

One Executive Management

Purchase, merger or PSOA
Three $500,000-payments
Executed agreement and
ther documents
10-year commitment

Base Grant Incentive Grant Special Grant

Healthy Station Initiative

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The TV CSG Pool Calculations

TV CSG Pool FY 2017 $222,778,125 + carry forward

CSG Reserve (Healthy Network Initiative) ($5,000,000) Grants Distributed FY 2017:

Base Grant

(approx. $72M)

Distance Service Grant

(approx. $5M)

USSG

($8,9M)

Remaining Funds = Incentive Funds Pool

minus Base Grant = 0.11% X Federal Appropriation Likely FY 2017 Base Grant = 0.11% x $445,000,000 = $489,500

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FY2016 TV Incentive Grant Calculation

FY 2016 Incentive Grant = $ 0.1321933376 x Grantee’s FY 2014 adjusted NFFS

$147, 452,281

$1,115,492,479

= $0.1321933376

FY 2016 IRR Formula Calculation FY 2016 Incentive Rate of Return (IRR) Formula Incentive Funds Pool Total Adj. FY14 NFFS

= IRR

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Base Grant

$489,500 estimate!

Incentive Grant

0.1321933376 (last year’s)

USSG csg@cpb.org

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Estimating TV CSGs

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Radio CSG Program

Photos courtesy KCPT.org and Bob Szabo

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Minimum Eligibility Criteria

CSG General Provisions

Operational
Financial
Reporting and recordkeeping
Statutory

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Minimum Eligibility Criteria

NFFS and Staffing Requirements
At least $225,000 non-Federal financial support
1.5 full-time employees with salaries not paid by the CSG
Audience Service Criteria (ASC)
Audience listening
Community financial support

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Minimum NFFS

CSG 2017 CSG 2018

Level A - Sole Service N/A N/A Rural + Minority (Level B,C)* $100,000 $100,000 Level B $225,000 $300,000 Level C $275,000 $300,000 Level D $400,000 $500,000 Financial Reporting Year FY 2015 FY 2016

*Minority Audience Service Stations with minority cume composition of 75% or greater must meet $100,000 minimum NFFS. 26

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Minimum NFFS & Staffing

CSG 2017 CSG 2018

Direct Revenue NFFS % 25% 50% Staffing (Level B) 1.5 Full-time 2 Full-time

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Minimum NFFS

NFFS Year Action Taken 1

Notice to station about status

2 Notice to station about status

3 Station removed from the CSG program

Stations repeatedly not meeting NFFS minimum

requirements will be removed from CSG program

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Audience Service Criteria

Listening Index (LI)

OR

Community Financial Support Index (CFSI)

Average AQH × 10,000 Coverage Area Population (CAP)) Community Financial Support × 100 Coverage Area Population (CAP)

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CSG FY 2017 ASC Calculations

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Audience Service Criteria

Minority Audience Service Stations need only meet one half of the applicable index.

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Coverage Area Population Listening Index Community Financial Support Index News Non-News News Non-News > 5 Million 13 7 50 14 1 - 5 Million 17 10 56 27 500,000 - 1 M 21 13 57 42 < 500,000 10 10 89 108

CSG FY 2017 ASC Goals

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ASC Year Action Taken 1

Full CSG; 1st 25% Restriction

2 Full CSG; 2nd 25% Restriction

3 Station removed from the CSG program Annual Warning letter sent to station in danger of failing

Audience Service Criteria

Stations repeatedly not meeting Audience Service

Criteria will be removed from CSG program

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Minority Audience Service Station

(MASS)

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1) Measured minority audience composition (cume) greater than 45% (increasing over 5 years) averaged over the previous three consecutive measured quarters*; or 2) Licensed to a designated Historically Black College or University; or 3) Licensed to a Native American Tribe, a consortium of Tribes, or an entity controlled by a Tribe, and is licensed to a community within recognized Tribal Lands and provides a coverage area of which a substantial portion includes Tribal Lands.

Qualification

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Minority Audience Service Station

(MASS)

Multiply the MASS-qualified station’s base grants and NFFS (up

to $5,000,000) by 1.5

Stations that meet the MASS criteria will have their Audience

Service Criteria goals reduced by 50% and may use part-time employees to meet the minimum employment requirement

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Support

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Rural Audience Service Station (RASS)

Coverage Area Population density ≤ 40 people per square km

Multiply the RASS NFFS by 1.25
RASS qualified stations are also eligible for the Rural Support

Grant (RSG)

Any station that qualifies under both MASS and RASS criteria, will receive a 1.5 multiplier to its base grants, a 1.75 multiplier to its NFFS and would be entitled to receive all the other related benefits.

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Qualification Support MASS & RASS

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Radio CSG Levels

Level Station Type Description

A

Sole Service

Only radio/TV broadcast service within 50 miles

B

Smaller

NFFS < $275,000
Less than 4 FT employees
Smaller stations may include RASS

C

Larger Rural

NFFS ≥ $275,000
At least 4 FT employees and
Population density ≤ 40 people per square km

D

Larger

NFFS ≥ $400,000
At least 4 FT employees
Population density > 40 people per square km

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Radio CSG Base Grant

Level Station Type FY 2016 Base Grant Amount

A

Sole Service

$100,000

B

Smaller

$72,160

C

Larger Rural Audience Service

$72,160

D

Larger

$57,728

MASS grantees may have their base grants multiplied by 1.5

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Base Grant Incentive Grant Special Grant

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Radio CSG Incentive Grant

Level Station Type FY 2016 Incentive Grant Amount

A

Sole Service

N/A

B

Smaller

N/A

C

Larger Rural Audience Service

NFFS X 1.25 X IRR

D

Larger

NFFS X IRR

MASS grantees may have their NFFS multiplied by 1.5 (up to $5,000,000)

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Base Grant Incentive Grant Special Grant

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Radio CSG Special Grant

Level Station Type FY 2016 Special Grant Amount

A

Sole Service

Rural Support Grant

B

Smaller (Rural Only)

Rural Support Grant

C

Larger Rural Audience Service

Rural Support Grant

D

Larger

N/A

MASS grantees may have their RSG multiplied by 1.5

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Base Grant Incentive Grant Special Grant

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FY 2016 Incentive Funds Pool $58,856,568

minus

Rural Support Grants (RSG) ($4,547,567) Base Grants ($28,727,368)

Radio CSG Pool FY 2016 $92,131,503

Radio CSG Grant Pool Calculations

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FY 2016 Incentive Grant IRR × Grantee’s FY 2014 Adjusted NFFS

$58,856,568 $1,020,193,158 = $0.0576916 Incentive Funds Pool Total Adjusted FY14 NFFS = IRR =

Radio CSG Incentive Rate Calculation

FY 2016 Incentive Pool distribution is based on Level C and D

stations’ adjusted FY 2014 NFFS

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Base Grant

Take average

f last three

CSG base grants

Incentive Grant

Levels C & D FY 2016 NFFS X the average of the last 3 IRRs 0.060126

Estimated

FY2017 CSG Award (excluding RSG)

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Estimating Radio CSGs

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Radio Level and Qualifications Summary

Requirements CSG 2017 FY 2016 CSG

Level Description Minimum NFFS Staff Must meet ASC? Population Density Base Grant NFFS Match?

A

Sole Service

N/A N/A N/A

Only Radio/TV service within 50 mile radius

$100,000 No

B

Smaller Stations

$225,000

$100k MASS+RASS

1.5 FT Yes various $72,160 No

C

Larger RASS

$275,000

$100k MASS

4 FTE

min 2 FT

Yes PD ≤ 40 $72,160 Yes

1.25 x

D

Larger Non- RASS

$400,000 4 FTE

min 2 FT

Yes PD > 40 $57,728 Yes

MASS grantees with ≥ 75% minority listening cume must meet $100k minimum NFFS

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Closing Thoughts

Photo courtesy Alabama Public Television

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Help

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cpb.org

– CSG General Provisions and Eligibility Criteria – Communications Act Compliance – Online webinars

Help Desk

– Email: csg@cpb.org – Phone: (866) 635-4747 – Fax: (202) 879-9700

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