The subcommittee met at 10 a.m. in room 1318, New Senate Office Building, Hon. John O. Pastore (chairman of the subcommittee) presiding. Present: Senator Pastore. OPENING STATEMENT BY THE CHAIRMAN Senator PASTORE. Today the committee begins consideration of S. 3558, a bill to provide continued financing for the Corporation for Public Broadcasting. It would authorize annual appropriations for the Corporation of such sums as may be necessary for the fiscal years 1971, 1972 and 1973. In order to create an incentive for support of the Corporation from non-Federal sources, the bill would also authorize appropriation of additional funds in each of those 3 fiscal years to provide for Federal matching on a dollar-for-dollar basis of non-Federal contributions to the Corporation. The administration has committed itself to an expansion of the Corporation for Public Broadcasting. In its budget for fiscal 1971, it has requested an appropriation of $22.5 million, and anticipates another $7.5 million for the matching fund program. The Corporation for Public Broadcasting which was created by the Public Broadcasting Act of 1967, is a federally chartered, independent, nonprofit corporation whose mandate is to encourage and facilitate the expansion and the development of noncommercial broadcasting and program diversity in that media. During its short lifespan, the Corporation has begun to fulfill this mandate. With limited financing the Corporation has begun providing broadcast programs of quality and excellence. It has established the Public Broadcasting Service, an independent organization to manage and operate the growing system of national interconnection of public television stations. And it has supported and strengthened local noncommercial stations. Staff members assigned to this hearing: Nicholas Zapple and John D. Hardy. That it has succeeded so well is in large measure a tribute to the men and women who have given tirelessly of their time, efforts, and talents, and to those who have extended their cooperation and made private funds available to the Corporation. Ultimately, however, public broadcasting must stand or fall on an adequate, long-range, permanent financing plan. At the time of its creation, I characterized the initial funding of the Corporation as "seed money" designed to enable it to come into being. I have urged this administration and its predecessor to submit a plan for permanently funding this worthwhile project. Because, until such time as the Corporation has such assurance, it cannot plan on a scale large enough to realize the vast potential of the medium. I would hope, therefore, that the administration would expedite its recommendations for long-range financing so we can truly get on with the job. In the meantime, however, the Corporation must have funds if it is to continue. I would hope that during these hearings, the committee and the American people will have an opportunity to hear about the Corporation's accomplishments, its future plans, and what many of the dedicated men and women in public broadcasting have to say about the Corporation and its role in public television. With this in mind, the committee will begin consideration of S. 3558. I want to say at this juncture, gentlemen, we are all very much interested in this Corporation that was created only a few years ago with very, very high hopes. I know that the task hasn't been easy and, fundamentally, it is one of financing. Naturally, if you had all the money that you could use and the money that you need, we would have no problems. After all, there are certain priorities and everything must be considered in its proper context. I think the gentlemen here all understand and appreciate that. This plan of encouraging foundations and outside groups to make contributions to be matched by the Federal Government is a splendid idea. I hope that we will expand it as time goes on. I will insert into the record a copy of the bill and any agency comments. (The bill and agency comments follow:) 91ST CONGRESS 2D SESSION S. 3558 IN THE SENATE OF THE UNITED STATES MARCH 9, 1970 Mr. MAGNUSON (for himself, Mr. PASTORE, and Mr. Scorr) (by request) introduced the following bill; which was read twice and referred to the Committee on Commerce A BILL To amend the Communications Act of 1934 to provide continued financing for the Corporation for Public Broadcasting. 1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That this Act may be cited as the "Public Broadcasting 4 Financing Act of 1970". 5 SEC. 2. Subsection (k) of section 396 of the Com6 munications Act of 1934 (47 U.S.C. 396 (k)) is amended 7 to read as follows: 8 9 "(k) (1) There are authorized to be appropriated for expenses of the Corporation for the fiscal year ending June 10 30, 1969, the sum of $9,000,000, and for the fiscal year 2 1 ending June 30, 1970, the sum of $20,000,000, and for each EXECUTIVE OFFICE OF THE PRESIDENT, BUREAU OF THE BUDGET, Washington, D.C., March 24, 1970. Hon. WARREN G. MAGNUSON, U.S. Senate, Washington, D.C. DEAR MR. CHAIRMAN: This is in response to your request of March 13, 1970, for the views of the Bureau of the Budget on S. 3558, the "Public Broadcasting Financing Act of 1970." S. 3558 is identical to a bill submitted by the Secretary of Health, Education, and Welfare to implement the President's recommendation, as set forth in his Message on Education Reform, to extend Federal support of the Corporation. Accordingly, we strongly favor enactment of S. 3558, which would be in accord with the program of the President. Sincerely, WILFRED H. ROMMEL, Assistant Director for Legislative Reference. Senator PASTORE. I understand that Dean Burch, Chairman of the Federal Communications Commission has another engagement. He has a very short statement that he would like to read to the committee. You may begin. STATEMENT OF HON. DEAN BURCH, CHAIRMAN, FEDERAL COMMUNICATIONS COMMISSION; ACCOMPANIED BY HENRY GELLER, CHIEF COUNSEL; AND DR. ROBERT HILLIARD, CHIEF, EDUCATIONAL BROADCASTING BRANCH Mr. BURCH. Mr. Chairman, I welcome this opportunity to give you the Commission's views on S. 3558, the Public Broadcasting Financing Act of 1970. This bill is designed to carry out the Presidents' recommendation, as set forth in his message on education reform, to extend Federal support of the Corporation for Public Broadcasting. S. 3558 would authorize annual appropriations for the Corporation through fiscal year 1973. Such sums as may be necessary would be authorized for each of the 3 fiscal years of 1971 through 1973. This bill would also encourage public support of the Corporation by providing for a Federal contribution equivalent to the non-Federal contributions given to the Corporation. Paragraph (2) of section 396 (k) of the Communications Act, which limits grants or contracts to any one station or for any one project to $250,000 for fiscal years 1969 and 1970, would not be extended. The Commission supports S. 3558 as a needed extension of the interim financing for the Corporation for Public Broadcasting which has been earlier provided in Public Laws 90-129, 90-294, and 91-97, and the Commission also supports the deletion of paragraph (2) of section 396(k) of the existing law which has an unduly restrictive effect on the operations of the Corporation. We note that a portion of the annual Federal funding would be based on matching the dollars raised by the Corporation from nonFederal sources. The Commission favors the anticipated stimulation of increased contributions from private sources through the incentive offered in this matching process. Most important, however, is the provision of the bill authorizing "for each of the next 3 fiscal years" after 1970 the appropriation of "such sums as may be necessary". Authorizing funds for the Corporation for a 3-year period will permit the Corporation to grow in an orderly and planned way so important to a new undertaking. We believe that the Corporation's need for funds will likely increase during this 3-year period. The open end provision for authorization of such sums as may be necessary, taken together with the above matching process, will thus provide suitable flexibility to meet these rising needs. The Commission wishes to stress, however, as it has in the past, the crucial importance of obtaining for the Corporation at the earliest possible time a permanent financial base not dependent upon annual appropriations. The committee will recall that the Carnegie Commission recommended establishment of permanent financing of a very substantial order at an early date. Too great a delay in finding the permanent financing solution will adversly affect the development of the Corporation and thus of the Nation's noncommercial educational system. Mr. Chairman, the Commission believes that there is no matter of greater importance or significance than this, in "promoting the larger and more effective use of radio in the public interest" (sec. 303 (g) of the Communications Act of 1934, as amended). The Commission and its staff would therefore be most happy to work with your committee and other interested agencies to achieve a solution. Mr. Chairman, I would like to add one personal note at this time. For sometime the Commission has, as the Chair is only too well aware, been wrestling about a number of proposals which are designed to increase competition in the broadcasting field. I refer to such matters as the 50-50 rule and things of that nature. It is my personal opinion, Mr. Chairman, and I speak as an individual now, that stimulus for the Corporation for Public Broadcasting 43-214-70-2 |