NPR faces $2.6 million deficit

[nocomradio]

Medicare.

  Maybe.

NASA.

  Only when spending without public question was the norm.

Transportation.

  Have you actually driven around this country? The roads in the rural areas without use are great. The rest, well, they are just a bit in need of some maintenance at best. Rail is a joke and the airline industry is beyond repair.

Schools.

Yeah. Hire a recent high school graduate. Once you teach them basic math and English skills, you might be lucky enough to get some work out of them.

Drinking water.

  Local governments usually handle that, and if you don't mind drinking pool water filled with chemicals, then I guess they do OK.

All things that either work much better under a public government structure than they have under private, or have failed largely because they're expect to compete in a free-market environment while having lots of political restrictions that're guaranteed to make them fail (Amtrak and the USPS come immediately to mind there).

 
 Tell the USPS to stop giving away millions of dollars worth of free boxes every year and printing new cartoon stamps every 3-6 months. That might help salvage that money losing mess. Again, simple economics.
 

[nocomradio]

 Then how, pray tell, does a non-profit spend so much money that they are essentially broke?

Did you read the article?  Obviously not.  They operate on a budget that assumes a certain amount of revenue.  That revenue has dipped below expectation.  But they're not broke.  Nowhere in the article does anyone say they're broke or bankrupt.  Those are for-profit words that don't apply.  They have cash reserves they can draw on.  Like most non-profits, they have an endowment they can dip into.  And they can raise their dues to affiliates.  I expect that will be discussed at the next board meeting.  And they will discuss cutting expenses, which they've already done this past year.  The federal appropriation has been made and covers them until 2014.  They's not an issue here, and won't affect their operations.  They will not be bailed out by the government or any government agency.

  I operate my business on an expectation of a certain amount of revenue as well. But to assume it will always be there is a mistake. It just may not, and then I need a backup plan. I don't have cash reserves to fall back on after I exhaust a meager savings account and the business account which has a 3 month reserve built in.

  For profit words do apply here. Like it or not these entities like to run just like businesses, but when things don't work, they then cry for help. The government will bail them out. Maybe not so publicly in the sense of GM and Chrysler, but they will toss them a safety net. It happens all the time in anything the government has a hand in. If NPR were to crash and burn, it would be a nasty black eye to D.C. that many politicians would have to answer to. You know they don't like having to answer to anything.

[TheBigA]

The government will bail them out. 

No they won't.  As I said, I was there the last time they had a crisis, and neither the government nor CPB bailed them out.  NPR is independent of the government, and they have a system in place to handle this deficite.  The government doesn't have a hand in anything they do.  The government makes one annual appropriation, and that's it.  Taxpayers will not be burdened with any additional cost.  If you just read their operating bylaws, you'd know.  NPR is NOT the Post Office. 

[aaronread]

No one including the government can tell a private business how they should run it, even if it is poorly.  I don't agree that anyone doing a crappy job should get paid for it, but it happens all the time. They are self-correcting in time.

Yes, because this has worked so well for the petroleum industry, the nuclear regulatory commission, the financial/banking system, the food industry, the pharmaceutical industry, the defense industry, and 38 Studios.   The latter run by a staunch Republican who was firmly against taxpayer bailouts, except - apparently - for his company.    (and remember, I'm a Sox fan)

Your replies to my examples of successful government programs shows a remarkably shallow understanding of the nuances.  For example, NASA is, without question, the most successful government program in the last fifty years (excepting Medicare/Medicaid) for a very simple reason: satellites.  NASA is who - directly or indirectly - puts, until recently, virtually every weather and telecommunications satellite up in orbit.  Both of which provide enourmous benefit and, incidentally, save a lot of lives.

[Goat Rodeo Cowboy]

  No one including the government can tell a private business how they should run it, even if it is poorly. I don't agree that anyone doing a crappy job should get paid for it, but it happens all the time. They are self-correcting in time.
 

They are self-correcting in time.   Thank you.  Now I get it.  I've been staying up at night... worrying about JPMorgan/Chase.  I feel better now... knowing that They are self-correcting in time. 

Has it escaped your attention that NPR may be as good of an example as America has today about an organization that actually demonstrates that they are self-correcting in time?

Harsh as it is, they sometimes jettison people who are too far outside the box.  They have technical and philosophical standards and audio content that doesn't meet the standard....   doesn't get on the air.

[nocomradio]

 If you've been up at night worrying about JP Morgan, then you have far too much free time, I guess. Give 'em enough rope and they will hang themselves. They will probably drag a lot of other people and things down with them when they go too. That is a price that you pay in participating in our capitalistic system. There are NO guarantees. That is the problem these days. Everything is seen as "too big to fail" and as such there needs to be some way to keep them from doing so, even if they have a business model that is as outdated as a rotary phone. That is exactly what has put us in the place we are now. It happens on even the smallest levels right down to people raising their children. If they fail at something they need to be rescued. Can't have them learning about how things really work, or used to anyway.

  Sharks eat smaller fish, bears eat smaller animals. Nature shows us a hiearchy, so why have we decided we are any better? Not everyone is destined to be wealthy, or successful and the same goes for businesses no matter their size. If they fail they fail. It may not seem fair, it may not seem right and if they got so big in the first place that they took out a lot of others while doing so, then maybe we all need to have a long, hard look in the mirror and see who wasn't paying attention all the while.

[Goat Rodeo Cowboy]

  Sharks eat smaller fish, bears eat smaller animals. Nature shows us a hiearchy, so why have we decided we are any better? Not everyone is destined to be wealthy, or successful and the same goes for businesses no matter their size. If they fail they fail. It may not seem fair, it may not seem right and if they got so big in the first place that they took out a lot of others while doing so, then maybe we all need to have a long, hard look in the mirror and see who wasn't paying attention all the while.

I don't know if it has come to your attention or not,  but humans do not eat their young.  Except in a few rare instances, they do not eat each other.

This country was founded because the folks we call patriots and Founding Fathers got tired of a Europe in the 1600's that had developed into a society much like you describe:  sharks eating smaller fish, etc.  People in debtors prisons.  People beheaded and burned at the stake for having non-acceptable religious beliefs.

You seem to overlook the Mayflower Compact.  The folks on the Mayflower (include some of my family tree) were not eating one another, but swearing to mutually aid one another.

Isn't 2012 an amazing year.  We have just witnessed a Presidential Primary season where all the candidates were trying to eat one another alive as they fought over who was the most religiously pure...  and in the end who-ever wins that battle will willingly strap on a platform that follows what you are suggesting:  We live in a society and want it to be aggressively so... where we eat one another like sharks in the ocean.  The most faith-oriented person among us gets to be elected the chief cannibal of the USA?

And at this point where we near the edge where political talk gets a topic moved out to T-I-O... it begins to look like the "sin" of NPR is that is reports from the position, and maybe comments from the position, that the listeners are humans... the kind of humans who do not eat their young, and do not prepare their young to go out and eat each other...  and we must silence NPR lest this heresy in human thinking regain some foothold in our society.  How dare people go out and think they care for one another?  how un-American can you get!!!!

 

[nocomradio]

I don't know if it has come to your attention or not,  but humans do not eat their young.  Except in a few rare instances, they do not eat each other.

 Of course they do. Every day by not teaching their children basic survival skills, by ending marriages on a whim, and by putting themselves first, many child rearing people do exactly that. Maybe not at the moment, but they still do it. That is only one small example mind you, but an example nonetheless.

This country was founded because the folks we call patriots and Founding Fathers got tired of a Europe in the 1600's that had developed into a society much like you describe:  sharks eating smaller fish, etc.  People in debtors prisons.  People beheaded and burned at the stake for having non-acceptable religious beliefs.

  I am not advocating debtors prisons nor killing people on the basis of their religious beliefs. I am simply saying that in the business world, there needs to be a little bit of good old fashioned Darwinism. Things can and will self correct. As they are going now, and in the case of something like NPR, they will never do anything more than suckle at the nearest teat that will sustain them.

You seem to overlook the Mayflower Compact.  The folks on the Mayflower (include some of my family tree) were not eating one another, but swearing to mutually aid one another.

  I didn't even consider the folks who came here to Plymouth and gladly took what was theirs from the folks already inhabiting the land in question. That, I think shows the real example of entitlement and taking advantage of the lesser equipped of humanity. Talk about eating your young........

.  and we must silence NPR lest this heresy in human thinking regain some foothold in our society.  How dare people go out and think they care for one another?  how un-American can you get!!!!

 I never said we need to silence NPR. Where did you read that? I simply think that like so many outdated and antiquated things, it need to either stand on its own or go. Being in a 2.6 million dollar deficit is a problem as I see it, and it ain't gonna go away by throwing more money at the problem. We've already seen too much of that over the last 4 years or so.

 Oh, and if having a differing opinion and an opposing viewpoint to yours is un-American, then I guess I will have to try to live with myself as best I can.

 
[/quote]

[TheBigA]

As they are going now, and in the case of something like NPR, they will never do anything more than suckle at the nearest teat that will sustain them.

You clearly don't know what you're talking about.  This is a multi million dollar organizaton that ran a $2 million deficit, with a $250 million endowment, and you're talking about bankruptcy.  It's no big deal, and they'll get in under control in the next budget.

I simply think that like so many outdated and antiquated things, it need to either stand on its own or go. Being in a 2.6 million dollar deficit is a problem as I see it, and it ain't gonna go away by throwing more money at the problem.
 

No one is asking you or anyone else to "throw more money" at it.  As I said, it's something they'll absorb in their next budget.  As a company, they've stood "on it's own" since the Reagan years.  That's when the direct government funding went away.  Since then, they've done just fine.  As I said, over $100 million in revenues a year, and a $200 million endowment.  Most American universities aren't as healthy.  And most American broadcasting companies are in far worse shape.

[willdav713]

One thing I do know, NPR has to be some cutbacks.  Since we are in a recession, not a depression until the people who file for unemployment reach above 10%, Restructuring is a must.  Maybe they can call Mitt Romney for advice.  He has turned businesses around.  At least they should call Dave Ramsey, or Suzie Orman.

Rather it be divesting affiliate's, cutting operations, staff, they need to do whatever it takes to remain solvent.  If they were a State Agency or Political Subdivision in Texas, they could be placed under "Sunset" but they are not. 

If the Government is involved again with NPR, it must be placed under Sunset review, where they take a deep look at the fiscal health of the Agency and make necessary changes.

It is not just NPR, it's Border Media Partners, Cox, and Clear Channel that has seen great turbulence.

The question is: 

What game plan does NPR have for restructuring it's organization?