WILDMAN REPORTS
By
Kathy Rueve
On August 20, 1999, The Joint Legislative Audit Committee (JLAC), chaired by Assemblymember Scott Wildman, responded to the cries of the public to investigate the Pacifica Foundation. The long anticipated report of this hearing has now been issued (full report available at web site: Assemblymember.Wildman@assembly.ca.gov).
The Committee’s held the public hearing to determine if Pacifica violated its charter and tax-exempt status by disenfranchising its Local Advisory Boards, used its funds for purposes inconsistent with its charter, and failed to observe the no lock-out, no strike provision of the collective bargaining agreement with the Communications Workers of America (representing the KPFA staff). The following is a summary of the findings and conclusions of the hearing.
In its Articles of Incorporation, Pacifica declares its mission to establish an organization for educational purposes as nearly self-sustaining as possible, providing outlets for community creative skills and energies, contributing to a lasting understanding between all peoples, and distributing public information on all matters vitally affecting the community. KPFA (Berkeley) began operation in 1949, avoiding a commercial structure and functioning "independently of the academy, the state, the corporation or the church." (Lasar).
In the 1960’s the National Board was created to support the local networks with assistance in administration, technological development, and fundraising and to provide national programming for its stations and affiliates. Local station boards elected two members to the national board, providing a source for community input (Gendelman). The station boards also were involved in hiring station staff and general managers.
In October 1994, Pacifica shifted to more centralized control and implemented the Five Year Plan, directing programming be more relevant and professional to serve a larger audience. Soon after, Executive Director Pat Scott told local station boards they served at the will and direction of the National Board to carry out the directives of the board. Later, Pacifica dissolved the station boards, creating the less authoritative Local Advisory Boards (LABs).
January, 1995, Pacifica took over KPFK (Los Angeles), suspending contract negotiations and initiating management controls to eliminate as much community input as possible (Gendelman).
During a retreat in January, 1997, Pacifica proposed that the LABs, instead of electing two members, nominate two people from each board from which the national board would choose one, with a second member appointed by the board. This allowed the board to select two-thirds of its membership. Even though by-law changes require a voting procedure that cannot be conducted at retreats, the retreat proposal was later treated as an official vote (Adelson). Pacifica asserts the by-law change removing the voting rights of LAB members occurred at the September, 1997, board meeting.
In September, 1998, the Corporation for Public Broadcasting declared LAB members concurrently serving as national board members might violate the Federal Communications Act of 1934, even though Pacifica had always received a waiver ruling, in part because Pacifica’s structure predated the formation of the CPB. In February, 1999, CPB threatened to withhold their March, 1999, payment. Executive Director Chadwick presented station reports to the board indicating elimination of CPB funding would cause lay-offs of three quarters of the staff, influencing board members to vote at the February, 1999, board meeting to alter Pacifica’s structure and by-laws to comply with the CPB. Documents provided indicate that Pacifica may have withheld or misrepresented proposed changes to its members, staff, volunteers and subscribers.
Groundwork for the "gag rule" was laid as Pacifica closed its finance committee meetings in June, 1995, stating that minutes were confidential. Any LAB members not accepting the reconfiguration required by the Five Year Plan were threatened with removal. Then a gag rule was imposed prohibiting on-air discussion of Pacifica’s internal policies. The five station Folios were eliminated, removing that link between subscribers and stations.
KPFK in 1996 removed an on-air programmer violating the Gag Rule. After the March, 1999, dismissal of KPFA’s General Manager, programmers were terminated for discussing her removal. In the following months at KPFA, security guards were hired, staff and programmer access was restricted in an escalating cycle as staff quit, were fired without explanation, and finally, faced arrest by their employer in July, 1999, when KPFA was shut down after broadcasting a press conference that discussed the possible sale of KPFA or WBAI (New York). Broadcasters were locked out of the station, violating the "no lockout, no strike" collective bargaining agreement as protests erupted in the streets in front of KPFA.
Expenditures for management and public relations consultants and armed guards at KPFA led to accusations of misappropriation of funds as Pacifica ignored normal financial practices. With Pacifica management unavailable, KPFA employees themselves paid for repairs and on-going operations when check requests were not processed. Board members have also been denied sufficient information or involvement in financial decisions that have been made by Board Chair Berry and Executive Director Chadwick.
By revising the by-laws to receive CPB funding, the national board has failed to maintain an independent funding base. They have become a financial burden on the stations without providing technological assistance, fundraising acumen or management skills. And they have violated the trust of listeners who provide a majority of the financial support ("Pacifica Foundation and management have not just eroded the public trust, they have obliterated it").
Berry and Chadwick have been inaccessible, refusing to respond to listeners, station staff, even to the audit committee which Chadwick declared does not have jurisdiction over Pacifica operations. In their press statements, they erroneously blamed the CWA union restrictions for their silence, while refusing to enter into substantive negotiations with union representatives.
At the October, 1999, board meeting, Pacifica resolved that it will not sell KPFA or any other licensee and that costs of the conflict at KPFA would not be charged to the listener supporters. (See report on the June, 2000, board meeting indicating KPFA is going to be charged with these expenses.)
The Committee concludes some Pacifica actions appear to contradict the mission statement of the foundation and may have violated stated goals. There appear to be violations of the operative collective bargaining agreement with KPFA employees and a breach of implied contract with local programmers, subscribers and volunteers. California Corporations Code may have been violated by Pacifica’s removal of LAB members voting for board directors. Pacifica engaged in poor management practices inconsistent with its mission, damaging the credibility of the corporation. They used local KPFA operating revenues for expenses inconsistent with established practices and donor expectations. Pacifica has failed to inform board members of issues critical to Board decisions, compromising the Board’s ability to exercise its fiduciary responsibilities. Pacfica’s failure to communicate with its listeners and employees was inconsistent with its founding principles.
(1107 words)________________________
Pull Quotes :
Pgph.7: "January, 1995, Pacifica took over KPFK (Los Angeles), suspending contract negotiations and initiating management controls to eliminate as much community input as possible..."
Pgph.10: "Any LAB members not accepting the reconfiguration required by the Five-Year Plan were threatened with removal."
Pgph.10: "The five station Folios were eliminated, removing that link between subscribers and stations."
Pgph.11: "Broadcasters were locked out of the station, violating the "no lockout, no Strike" collective bargaining agreement as protests erupted in the streets in front of KPFA."
Pgph.12: "Board members have also been denied sufficient information or involvement in financial decisions that have been made by Board Chair Berry and Executive Director Chadwick.