Leasing the airways

The media has worked overtime reporting on revenue-raising proposals -- from leasing the state's toll roads to almost anything with a money stream including the lottery -- all in the name of budget balancing. 

Little to no attention has been paid to the notion of leasing the state-owned public broadcast licenses. Depending on who you talk to, estimates range from a few million dollars to more than $100 million dollars. Cha ching!

So it's no wonder the proposed conversion of NJN from a state-licensed facility to a community-licensed one is a bit controversial.

Setting aside the value of the licenses for a moment, the proposed transition plan for the state's public broadcasting entity is a non-starter for most state workers. Especially those who are closer to retirement age and see their future pension and health benefits being horse traded for the future sustainability of NJN.

"This is not just about pensions and benefits, though they are important, for our members; they are television people who have spent decades at NJN at lower pay than what they could receive in broadcasting outside public broadcasting," emphasized Dudley Burdge, senior staff representative for CWA Local 1032. "They are dedicated to the idea of New Jersey programming and are greatly distressed at the continuous decline in NJ programming at NJN. 

"They believe that with a non-profit in complete control, no-bid contracts for legal work, business advise and more will flow -- to the detriment of actual broadcasting," he added.

Aside from that disagreement, almost everyone you talk to in management or in the union agree that NJN is worth saving and its future is threatened by the status quo. A new structure is envisioned by both sides -- something that frees NJN from state bidding and procurement hurdles that make doing business with the private sector nearly impossible.

Now here's where the disagreement flares up -- what should that new entity look like. Is it a non-profit with complete autonomy from the state or is it an authority that retains some governmental oversight through appointments of its members and veto power over its minutes? Or something else?

To flesh it out, both parties claim they are willing and ready to sit down with legislators and the governor's office - as well as each other -- to draft legislation that removes the impediments while ensuring a future for NJN, its employees and its stakeholders.

Now back to those stakeholders -- a.k.a. the taxpayers. The real question is how much is NJN worth?

Older assessments and a secret deal seem to be obscuring the fair market value of its licenses.

What we hear is NJN has signed a multi-year deal with Nextel to lease some of its digital spectrum and educational broadband service licenses.  A non-disclosure provision prevents the public from knowing the details. 

The Attorney General's Office did not respond to inquiries about the Nextel arrangement. NJN confirmed that a deal with Nextel is in the works but all the terms of the agreement have "yet to be worked out" including the amount of the deal and who would receive the broadband leasing funds.

Maybe it's a good deal for the taxpayers -- maybe not. 

According to one Florida public license bid request, "Market size and educational levels of the audience are key factors in determining the value of a public...license."  By that standard, the state holds some hot properties.

Current also reports "Pubcasters expect budget problems to top the priority list" at this week's meeting of the Organization of State Broadcasting Executives in Burlington, Vt.

While NJN's budget woes are not an isolated case, it does means competition for grants and private fundraising dollars will be increased -- leaving leasing an untapped, and perhaps necessary, source of funding.

Future media coverage -- including that by NJN's own news department -- needs to lift the veil of secrecy and give any legislative proposal on the state's network a full vetting.

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