NJN on life support

Despite all the recent downsizing news at The Record and Star Ledger, similar economic pressures at New Jersey's only statewide television station have virtually been ignored by the media. Aside from the headliner early retirements announced and the station's budget proposal to wean itself off state's coffers back in May, very little attention has been paid to the pressing financial predicament at NJN.

"We are at an urgent point in our history," emphasized NJN Executive Director Elizabeth Christopherson. "Being so lean for so many years makes you creative, but it is also like living on an oxygen tank. If you turned it off now, we will not be able to be sustainable."

If you give Christopherson an hour, she'll lay out in rapid-fire detail its efforts over the last three years to develop a framework for meeting the looming economic challenges while maintaining its "editorial integrity and professional standards of excellence." And she'll detail the multiple dialogues she and others have had with the administration, legislature and stakeholders.

So it was a bit surprising when NJN's proposal to change its operations was not greeted with open arms during its May budget proposal according to published news accounts.

Here's the bottom-line at NJN: Slashed state funding in FY2009, a hiring freeze on the heels of an early retirement offer which cut personnel in key positions -- including news anchorperson. If that's not enough, throw in the unfunded Federal Communications Commission mandate to convert all analog broadcasts to digital by 2009. NJN estimates it still needs about $23 million in capital investment to upgrade its aging infrastructure and complete its digital conversion.

Anyone see that funding coming from the State House?

"Some are under the impression that we can just up the ante and hold another fundraiser," added Christopherson noting the success NJN's foundation has had since its creation in the 1990s at the turn of the last state fiscal crisis.

Christopherson explained raising more than $95 million in the past cannot guarantee success in the current economy.

"The good news is we love our news department, our educational programs and our workforce," she said. "The difference is how we will continue to pay for it."

"Forty years ago this structure made sense for the state, but not today," she added. Across the U.S., out of 174 public broadcasting entities, 90 are community licenses and only about 20 are state licensed. Recently, both Oregon and Vermont have made similar transitions.

You may ask, what's the difference between a state license and a community license? Basically it comes down to reporting lines -- the governor and the legislature on the one hand or a nonprofit board of directors on the other. The audience/viewers are the same -- except that the tab is no longer picked up by the taxpayers.

As far as any NJN assets go, here's the numbers:

• In FY06, NJN's audited net book value was $5.7 million.
• It was $6 million in FY07.
• With today's improvements required for digital conversion - some from a donation and grants - the audited net book value is $7 million.
• Net book value on its aged four towers is $0. Replacement value is $1 million each.
• The building that houses NJN is not included in the net book value as there are no plans to transfer it.

From the perspective of management at NJN: "The new organizational structure will give NJN the flexibility to lease some if its licenses to generate new revenues to help fund...operations and modernize equipment. All proceeds gained from these business arrangements will be channeled right back to the organization to provide economic sustainability and encourage growth."

So, as NJN's ultimate shareholders (that's anyone paying taxes in NJ), we thought we'd give you a chance to weigh in.

Should the state transfer NJN ‘s assets to a private foundation as part of the station's efforts to transition from a state funded entity to a community public broadcast station serving the same folks?

Up Next: The replacement search (and hiring pitfalls) for the NJN news anchor slot.

Debbie Holtz, PolitickerNJ.com's political media columnist, studies and teaches public policy and writing at Rutgers University.