Community Service Grant 101
Kate Arno
Director, TV CSG Policy & Review
Andrew Charnik
Director, Radio CSG Policy & Administration
576 CSG radio and TV grantees
operating 1,488 stations
Photos courtesy The Nebraska Network
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170 TV Grantees
Licensee Type
Local
State
University
Community
4
11
33
52
3
406 Radio Grantees
Licensee Type
Local
State
32
14
University
Community
186
174
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Federal Appropriation
(FY2017)
$445,000,000
No less than 6%
No more than 5%
CPB
Operations
System
Support
$26,700,000
89%
Station and
Programming Grants
$ 22,250,000
$396,050,000
75% (of 89%)
25% (of 89%)
Television
Radio
$ 297,037,500
$ 99,012,500
75%
25%
CSG
Unrestricted CSG
$ 222,778,125
$ 69,308,750
Programming
Restricted CSG
$ 74,259,375
$ 22,772,875
Programming
$ 6,930,875
70%
23%
7%
FY 2017 CSG Cycle
Submit 2015
AFR/FSR
2nd
payment
FY-end + 5 mos.
FY 2017 grant
offers
Nov. 2016
Submit 2016
AFR/FSR
Certify and
accept CSG
SABS/SAS/LCSR
submitted
1st payment
Feb. 15, 2017
6
Eligibility Criteria
• cpb.org
– CSG General Provisions and Eligibility Criteria
– Communications Act Compliance
7
Eligibility Criteria
License & Operations
Diversity
Programming &
Broadcast Schedule
Transparency
Communications Act
Annual Training
Reporting
Minimum NFFS
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Eligibility: Minimum NFFS
Defined
• Qualifying direct, indirect and
in-kind revenue from sources
not federal government or
PBEs
Importance
• Determines incentive portion
of CSG award
Minimum
• $800,000 3-year average NFFS
• CSG 2017 minimum NFFS
based on FYs 2013, 2014,
2015 average
9
TV CSG Program
Photos courtesy New Hampshire Public TV
10
Community Service Grants
Base Grant
Fixed amount
Incentive
Grant
Matches a
qualifying
station’s NFFS
Special
Grant
For eligible
stations
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Base Grant
Incentive Grant
Standard Base Grant
Special Grant
• 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
one base grant/market
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Base Grant
Incentive Grant
Incentive Grant
Special Grant
•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.
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Base Grant
Incentive Grant
Special Grant
•
•
•
•
FY 2017 Special Grants
Universal Service Support Grant
Program Differentiation Incentive
Distance Service Grant
Healthy Station Initiative*
* All eligible stations receive funding but must apply.
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Base Grant
Incentive Grant
Special Grant
Universal Service
Support Grant
• 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 nonoverlapped population
served.
• Grants made in
proportion to
populations served.
• $8.9M pool for FY 2017
• = 2% total CPB
appropriation
15
Program Differentiation Incentive
• Secondary stations in multi-provided markets stations are eligible
• Self-certify programming is differentiated from other stations in market
Multi-Provider Market
• Station’s NFFS up to the first
$2M X 1.75
• Station’s NFFS between $2M
and $4M X 1.25
1. Signal > 50%
of population
served by
another station
• $4M to 21 stations in FY 2016
2. < 20% of population
served is unduplicated
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Base Grant
Incentive Grant
Special Grant
PDI
4-year phase out:
Review one base grant per multi-provider
market policy after spectrum auction.
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Base Grant
Distance Service Grant
Incentive Grant
Special 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
transmitters
5
5%
7.5%
10%
of standard base grant
6
7
8
9
10
11
12
20%
30%
40%
50%
60%
70%
80%
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Base Grant
Incentive Grant
Healthy Station Initiative
Special Grant
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
other documents
• 10-year commitment
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The TV CSG Pool Calculations
Base Grant = 0.11% X Federal Appropriation
Likely FY 2017 Base Grant = 0.11% x $445,000,000 = $489,500
TV CSG Pool FY 2017
$222,778,125 + carry forward
minus
CSG Reserve (Healthy Network Initiative)
($5,000,000)
Grants Distributed FY 2017:
• Base Grant
• Distance Service Grant
• USSG
(approx. $72M)
(approx. $5M)
($8,9M)
Remaining Funds = Incentive Funds Pool
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FY2016 TV Incentive Grant Calculation
FY 2016 Incentive Rate of
Return (IRR) Formula
Incentive Funds Pool
Total Adj. FY14 NFFS
FY 2016 IRR Formula
Calculation
= IRR
$147, 452,281
$1,115,492,479
= $0.1321933376
FY 2016 Incentive Grant =
$ 0.1321933376 x Grantee’s FY 2014 adjusted NFFS
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Estimating TV CSGs
Base Grant
$489,500
estimate!
Incentive
Grant
0.1321933376
(last year’s)
USSG
[email protected]
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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.
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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
Minimum NFFS
• Stations repeatedly not meeting NFFS minimum
requirements will be removed from CSG program
NFFS Year
Action Taken
1
Notice to station about status
2
Notice to station about status
3
Station removed from the CSG program
Audience Service Criteria
• CSG FY 2017 ASC Calculations
Community Financial Support
Index (CFSI)
Listening Index (LI)
Average AQH × 10,000
Coverage Area Population (CAP))
OR
Community Financial Support × 100
Coverage Area Population (CAP)
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Audience Service Criteria
• CSG FY 2017 ASC Goals
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
Minority Audience Service Stations need only meet one half of the applicable index.
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Audience Service Criteria
• Stations repeatedly not meeting Audience Service
Criteria will be removed from CSG program
ASC Year
Action Taken
1
2
Full CSG; 1st 25% Restriction
3
Station removed from the CSG program
Annual
Full CSG; 2nd 25% Restriction
Warning letter sent to station in danger of failing
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Minority Audience Service Station
(MASS)
Qualification
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.
32
Minority Audience Service Station
(MASS)
Support
• 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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Rural Audience Service Station (RASS)
Qualification
Coverage Area Population density ≤ 40 people per square km
Support
• Multiply the RASS NFFS by 1.25
• RASS qualified stations are also eligible for the Rural Support
Grant (RSG)
MASS & RASS
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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Radio CSG Levels
Level
Station Type
A
Sole Service
- Only radio/TV broadcast service within 50 miles
Smaller
- NFFS < $275,000
- Less than 4 FT employees
- Smaller stations may include RASS
Larger Rural
- NFFS ≥ $275,000
- At least 4 FT employees and
- Population density ≤ 40 people per square km
Larger
- NFFS ≥ $400,000
- At least 4 FT employees
- Population density > 40 people per square km
B
C
D
Description
35
Base Grant
Radio CSG Base Grant
Incentive Grant
Special 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
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)
37
Base Grant
Incentive Grant
Special Grant
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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Radio CSG Grant Pool Calculations
Radio CSG Pool FY 2016
$92,131,503
minus
Rural Support Grants (RSG)
($4,547,567)
Base Grants
($28,727,368)
FY 2016 Incentive Funds Pool
$58,856,568
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Radio CSG Incentive Rate Calculation
• FY 2016 Incentive Pool distribution is based on Level C and D
stations’ adjusted FY 2014 NFFS
Incentive Funds Pool
$58,856,568
= $0.0576916
IRR =
=
Total Adjusted FY14 NFFS
$1,020,193,158
FY 2016 Incentive Grant
IRR × Grantee’s FY 2014 Adjusted NFFS
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Estimating Radio CSGs
Base Grant
Incentive
Grant
Estimated
Levels C & D
Take average
of last three
CSG base grants
FY 2016 NFFS X
the average of
the last 3 IRRs
FY2017
CSG Award
(excluding RSG)
0.060126
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Radio Level and Qualifications
Summary
Requirements CSG 2017
Level
Description
Minimum
NFFS
Staff
Must
meet
ASC?
FY 2016 CSG
Population
Density
Base
Grant
NFFS
Match?
$100,000
No
N/A
N/A
Only Radio/TV
service within
50 mile radius
1.5 FT
Yes
various
$72,160
No
$275,000
4 FTE
min 2 FT
PD ≤ 40
$72,160
Yes
$100k MASS
Yes
Yes
PD > 40
$57,728
A
Sole Service N/A
B
Smaller
Stations
C
Larger RASS
D
Larger NonRASS
$225,000
$100k MASS+RASS
$400,000
4 FTE
min 2 FT
MASS grantees with ≥ 75% minority listening cume must meet $100k minimum NFFS
1.25 x
Yes
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Closing Thoughts
Photo courtesy Alabama Public Television
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Help
• cpb.org
– CSG General Provisions and Eligibility Criteria
– Communications Act Compliance
– Online webinars
• Help Desk
– Email: [email protected]
– Phone: (866) 635-4747
– Fax: (202) 879-9700
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Community Service Grant 101
Kate Arno
Director, TV CSG Policy & Review
[email protected] 202.879.9629
Andrew Charnik
Director, Radio CSG Policy & Administration
[email protected] 202.879.9643
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