MTPR's Revenue Forecast: Five Years, One Chart
During our listening tour this winter MTPR senior staff received feedback indicating that our audience did not understand the financial challenges facing the station. This chart and a recent letter from the station's director are an effort to fully explain the scope of our operating budget.
In fiscal year 2015 MTPR achieved $1.2 million in local funding, a deficit of about $125,000 against basic operational expenses and necessary capital equipment.
You can see from the chart above there is a steep rise from FY2015 to FY2016. In FY2016 The station will need $1.5 million in local support to meet basic operations.
That $300,000 increase that results in the $1.5 million projection breaks out as follows:
- $75,000 revenue increase toward basic operations;
- $70,000 increase in payroll and benefits which includes moving a strategic, digital content position from half to full-time and establishing a part-time marketing position;
- $130,000 to replace 1 of our 5 most aged transmitters;
- $25,000 projected increase in communications, program fees, basic supplies, fundraising expense;
- this all adds up to $300,000 and brings us to break even for FY2016.
The need for increased funding is most steep for FY2016, partly because FY2015 revenue did not meet the station's basic needs. Starting in FY2016 we must also ask for local support for transmitter replacement and infrastructure upkeep. The federal telecommunications grant program that used to fund 75% of our infrastructure projects was canceled a few years ago.
MTPR recently worked out this five-year projection. The increases in subsequent years are less steep once this new financial model including infrastructure is established.
The success of the station and our long-term viability is in the hands of our audience. This is nothing new, it has been our model for success for 40 years.The decision to support MTPR is a personal one for every listener. To succeed MTPR will need to attract news donors and even more importantly, encourage returning donors to consider giving more.