Arkansas PBS commissioners on Thursday voted unanimously to approve a $15.2 million budget for fiscal 2023 and also discussed sending a $3.5 million request to Gov. Asa Hutchinson for a piece of the $1 billion state surplus to fund projects including a new roof and an update to its 55-year-old plumbing.
"These are vital infrastructure needs that we have been unable to address through our operating budgets for several years," CEO Courtney Pledger said. "Most of these projects are urgent, with the roof now being critical with no existing warranty moving forward, affecting its insurability."
The request for extra funds for the network comes as Arkansas PBS Foundation Chief Executive Officer Marge Betley told the commission that the fundraising arm is "going to end the year quite comfortably."
Betley told the commission that the foundation has had a 7% growth in overall membership revenue, topping $3 million for the first time in its history.
The foundation also had a 70% growth in grant revenue after filling a grants officer position.
The Arkansas PBS budget was completed and submitted to the Arkansas Department of Finance and Administration before the May 19 deadline, Fred Wiedower, the network's chief financial officer said.
The $15.2 million budget is an increase of $771,000, or 7.1%, from last year's budget. It comprises $9.3 million in cash operations and $5.9 in state operations. Included is $5.6 million in salaries, careers and performance pay for 102 authorized full-time positions and $1.95 million for employee benefits.
The remaining budget consist of $350,000 for professional fees, $950,000 for conference and travel, $60,000 for promotional items, $40,000 for grants/aid and $5,000 in cash operations.
The Arkansas PBS Foundation is budgeted to expend $4.3 million to administration, production, marketing and programming, bringing the total budget to $19.5 million.
Projected revenue for the network for 2023 is $16.9 million with $4.4 million from the foundation for a total of $21.2 million.
The greatest revenue comes from the administration category, with $5.9 million in state funds, $1.9 million in cash and $2.1 million from the community service grant. The network has a carry forward balance of $3.6 million and is expecting to bring in $228,000 from production and $3.1 million from education, with the majority coming from the federal IDEAS grant program.
The network is asking for $3.5 million from the state's current $1 billion surplus for capital improvement funding for "several critical, long overdue needs" within the network.
In March, the Arkansas House approved a $5.9 million appropriation to fund Arkansas PBS, but only after weeks of conflict.
At the time, state Sen. Dan Sullivan, R-Jonesboro, took issue with a personal Twitter page of one of the network's producers that espoused "radical" views on climate change and the Biden administration's proposed infrastructure package.
Hutchinson came to the network's defense at the time, saying that a cut in funding to the network would affect the services Arkansas PBS provides to the state.
In the end, the network agreed to a study and to work on the issues brought up in the debate.
In a recent letter to Hutchinson, Pledger said the network's basic operational costs are not being fully met by the general revenue funds it receives.
"Once salary and benefits benefits for employees are met, the remaining amount available will not even cover our electric bill, much less the basic needs of a functioning state agency," Pledger said in the letter.
The network asked for funds to bring the 1966 headquarters up to date, including $1 million for replacing the roof of the 49,579 square foot facility. The flat roof has reached its maximum lifespan covered under warranty, leaving the interior equipment and other assets within the building vulnerable to damage.
The network is also asking for $50,000 to replace the 55-year-old original cast iron pipes in the five restrooms.
"Due to operating budget constraints, this work has long been deferred, but must now be repaired or replaced," Pledger said in the letter. "The health and welfare of our staff and visitors are at risk."
Another $1 million was requested for repairs and maintenance of the transmission towers, with some beginning to show signs of significant rust and aging.
In order to update the network's digital archives, $1.2 million is needed, Pledger said.
"The Arkansas PBS video archives are an irreplaceable state historical resource that are hitting a dangerous level of deterioration," Pledger said. "This video content, featuring years of Arkansas governors, statesmen and women, and noted figures, must somehow be protected through digitization for future generations."
Pledger also asked the governor for $230,000 to replace some of its 13-vehicle fleet. The majority of the vehicles have over 120,000 miles on them -- with one logging 412,204 miles -- and most are approaching 10 years old.
"Though this is a considerable sum, it is imperative to address these issues as soon as possible for the continued operation and safety of our agency," Pledger said in the letter.