How WXXI’s CEO sees its future

WXXI Public Media CEO Chris Hastings was not caught off guard when federal funding to his public media station was eliminated, but he believes many others in Rochester were.

“I think a lot of people were surprised and they assumed it couldn’t happen. But it was a legal cut,” he says. “We spent so much time educating people on what was happening in Congress, but it was still news to (many).”

On July 18, the House of Representatives gave final approval to a Trump administration plan to slash $9 billion in previously allocated funds for foreign aid and public broadcasting in a 216-213 vote, with all but two Republicans in favor of the cuts. Rochester-area congressional representatives were split: Rep. Joe Morelle, D-25th, voted against the rescission bill, while Rep. Claudia Tenney, R-24th, voted for it.

The two-year measure rescinds $1.1 billion in previously allocated Corporation for Public Broadcasting funding, the federal mechanism that has supported National Public Radio, the Public Broadcasting Service, and all their member stations, since passage of the Public Broadcasting Act in 1967. 

The funding cut came after a concerted national effort, “Protect My Public Media,” and Hastings’ own efforts locally to spur opposition to the bill, including a virtual town hall meeting a month before the vote.

The move puts about 20 percent of all stations in the United States at risk, particularly those in rural and Native American tribal areas, according to an analysis by Alex Curley, a former NPR product manager. Some stations have relied on federal funding for as much as 98 percent of their operations.

WXXI is not nearly as dependent on federal funding, but it has been an important source of operating funds. In his virtual town hall meeting, Hastings estimated federal dollars in WXXI’s budget “floats between 12 and 15 percent,” which is on par with the 15.6 percent average Curley found in his 2023 analysis of stations.

The loss of CPB funds leaves WXXI with a gap of $1.9 million.

“This has been a possibility for a long time. You always hope for the best, but you try to prepare for whatever,” says Hastings, who succeeded longtime CEO Norm Silverstein last November.

WXXI Public Media, a nonprofit formally known as WXXI Public Broadcasting Council whose roots trace back to 1958, owns and operates television and radio stations that provide a mix of informational and entertainment programming. In 2011, the organization added the Little Theatre to its portfolio as a subsidiary. Some seven years later, WXXI decided to acquire City Newspaper, an alternative weekly founded by Mary Anna and Bill Towler in 1971. The publication, now called City Magazine, is focused on arts and culture.

While Hastings says his organization can navigate the immediate financial storm, for WXXI to maintain its level of operations and service, all hands are needed on deck, from financial supporters to WXXI employees. And even then, some offerings still may be lost. 

“I just appreciate that this station is going to survive,” Hastings says. “Whereas there are some stations, even in this state, that won’t.”

Immediate concerns

Hastings came to Rochester in November 2024, succeeding Silverstein, who had led the organization since 1995. Before joining WXXI, Hastings was at GBH, a producer of signature PBS programs in Boston, where he was executive producer and editor-in-chief of the World Channel. Hastings began his journalism career at Black Entertainment Television, a place where he has said he realized the power of media to inform and inspire communities.

“I picked this city strategically (over continuing at GBH) because Rochester and (WXXI) are in love with each other,” Hastings says. “And I have a greater voice and a chance to make a difference here.”

Shortly after Hastings’ arrival, Donald Trump was elected to a second term as president, and the threat of cuts to public media funding became real. WXXI warned about the $1.9 million impact here. In addition to Hastings’ virtual town hall and emails to supporters, callers to the station’s main phone line have been informed of the funding loss and encouraged to donate. 

Unlike some public media stations, WXXI’s survival is not in question, and it has been buoyed by strong donations at the start of its new fiscal year, which began July 1.

“In the short term, it doesn’t affect us yet. We still have time,” he says. “The vast majority of what we offer to the public for free, we’re going to be able to continue it. Just with a smaller staff footprint.”

Hastings identifies the three most at-risk areas for WXXI with the loss of CPB funding: educational programming such as access to PBS Kids’ shows; licenses for classical music broadcasts; and a newsroom whose reporting spans radio, television, and its news website.

“The fear is we will not be able to do as many things as we did yesterday,” Hastings says. “The people that are here, I’m going to have to rely on to do even more. And that’s going to be a difficult dialogue, because they’re already pushing above their weight.

“I’m not prepared to say which direction we’re going yet,” he adds, referring to personnel changes. “Because I’m hopeful we might be able to bring in (the dollars) we need for the first quarter. If you were talking to me in September, I’d be able to tell you more. We’re still fresh in this situation.”

Hastings wants WXXI to be seen as the standardbearer for good journalism in the Rochester area, both maintaining and growing community trust in its reporting. Recently, in an effort to be even more transparent with its policies, WXXI began creating its own journalistic standards rather than NPR boilerplates. Hastings believes that more award-winning work could and should be coming from the station.

It takes money to accomplish that vision, however. For example, the one reporter currently assigned to an inclusion beat is on staff thanks to contributions from the Golisano Foundation. To keep costs in line with revenues, WXXI will prioritize local issues over national ones, likely rely more on freelance writers (as it does with City Magazine), and explore partnerships with other news organizations.

“We’ve been trying to do it on our own for a long time, and my hope for the future is that we can do some journalism in partnership, either with the Beacon or the Democrat & Chronicle,” Hastings says. “We need to open up our conversations with organizations that are also trying to do it and try to see if we can find some natural synergy.

“We also have to stay nimble. We have to be careful that we’re not overinvesting in something,” he adds about news coverage. “When brands spin up, try to do it all, and there’s no business model there, they eventually go away.”

Long-term health

With its traditional funding disrupted, WXXI will need to change strategy. Thankfully for the organization, revenue streams have already been tilting toward community contributions over grant money, according to financial statements.

An independent auditor’s report shows WXXI had a total revenues of $15.5 million in 2023, with the largest portion ($4.7 million) coming from unrestricted membership income. Government grants totaled $3.4 million. That same year, the station reported $16.9 million in total expenses, meaning it was operating at a net loss of $1.3 million. In 2022, WXXI logged $16.8 million in revenue and $16.7 million in expenses, producing a net surplus of $75,608.

Government grants in 2023 were split between federal CPB funding ($1.71 million) and the state Department of Education ($2.01 million). While Hastings says there has been some increase in available state funding for public media in the last funding cycle, he does not view money from Albany as the savior.

“It is helpful,” he says of the increased state funds. “But it’s not filling that hole.

“What I try to remind my staff and our board about is that, if you look at the numbers, (CPB funding is) not our largest source of income,” he continues. “It’s a critical source of income, but it’s not our largest source.”

The distribution between membership and grants holds true when viewing WXXI’s Form 990 filings with the Internal Revenue Service. In general, the filings as far back as 2012 show membership dues have been increasing. In 2012, they were $3.3 million compared with $3.1 million in government grant money; by 2024, membership dues had grown to $4.5 million, while government grants were $3.4 million. 

The Form 900 for the year ended June 30, 2024, shows revenues of $13.3 million with expenses totaling $15.3 million.

Hastings is forthcoming about the need to both strengthen existing revenue streams and find new ways to bridge the operating gap.

For example, a major part of the organization’s current strategy is to build on existing community support. Last year set a record in income from memberships, reaching $5.3 million, Hastings says, and he believes it could grow even more, especially through digital outreach rather than over the airwaves.

“Is it as much as $1.9 (million)? I don’t know. But I do think it’s $5.3 (million)-plus,” he says.

“I still feel optimistic because when you look at it, these were changes (to revenue streams and digital focus) we had to make anyway,” adds Hastings. “And those were things we already started before this cut.”

Community support is vital in other ways too.

“It goes back to why membership, and sustaining memberships, is the most important source of funding we do at this point. Because when it’s on a monthly basis, and it’s unrestricted, we have that flexibility there in how we spend it,” Hastings notes. “For literally $5 a month, you’re helping the bigger picture.”

Even with a push for more memberships, a funding gap is likely to remain. Finding another $1.9 million through memberships would require an increase of 35 percent. So, Hastings says there also needs to be a focus on grants from local and national foundations, like most other nonprofits without guaranteed federal funding.

Building the WXXI brand through merchandise and events could be another revenue source.

“I make this joke internally. (WXXI) is kind of like the Rochester Disney,” Hastings says. “If we’re smart about how we use our brand, we might be able to bring some more revenue sources in to support the mission.”

Acquisitions like the Little Theatre and City Magazine, and WXXI’s already strong arts coverage, have been well-received in the Rochester community, which he says is very aware of arts and culture.

He sees opportunities to leverage community engagement, like fundraising events at the Little Theatre, where plans for PBS film screenings are already in motion. Hastings also mentions the idea of a subscription service for City Magazine that offers delivery to homes.

Neither entity could likely stand on their own, Hastings says. The independent auditor’s report for 2023 shows that the Little Theatre had about $1.4 million in revenue (with 65 percent of it coming from box office or concession sales). The theater had $1.9 million in operating expenses, however, so it operated at a loss that year. City Magazine, which WXXI operates as a for-profit subsidiary, posted $585,645 in revenues on expenses of $1.1 million, for a loss of $524,238. 

Hastings believes transparency during this time is paramount. He says he outlines facts as he learns about them for his staff and gives them space to air their views.

For the WXXI audience, there is a similar approach of continual communication, as evidenced by Hastings’ email updates and virtual town hall. These elements will continue as the effects of federal cuts become clearer.

“Because the community is a partner in this institution, I think I have to be radically transparent about how it all works,” Hastings says.

The role of public media

Hastings sees WXXI and its unbiased reporting as an integral part of protecting American democracy. He cites growing misinformation and disinformation through digital outlets, like social media, as a threat to the nation.

“Wherever you sit ideologically, I want it to be clear that we’re going to give you the truth. We’re not going to be like one of these services on cable where they’ll give you one side or the other,” says Hastings. “Rochester may not be a news desert, but (WXXI) serves news deserts.”

The 2024 State of Local News report from Northwestern University’s Medill School of Journalism found that local news deserts have been expanding nationwide, growing to 208 counties last year. More than 7,000 newspaper jobs were lost between 2022 and 2023. Monroe County was rated as a healthy area, with five news outlets listed in the study, including WXXI, the Democrat and Chronicle, and the Rochester Beacon.

Surrounding counties in the Finger Lakes were not ranked as healthy, with Orleans, Wayne, and Livingston counties each having only a single news outlet. Ontario and Genesee counties had two outlets each.

Though the geography of news deserts is expanding, Hastings is confident the Rochester area cares about its public media, citing as evidence the increase in WXXI memberships from 2023 to 2024.

“The heart of what we do is for serving the community,” he says. “So, we’re going to be going to the community, talking to big and small groups, and with this $1.9 million cut, I’m hoping over the next 12 months they will step up and help us fill the gap.”

Such engagement and greater awareness will be vitally important for WXXI in the future, he believes.

“Even if the campaign to save (federal funding for) public media didn’t turn out the way we would have liked it, it’s important to stay engaged with what’s happening in Congress,” Hastings says. “I don’t want people to be surprised like they were in this case. I want people to know who voted for (the cuts to CPB), who didn’t vote for this, so that when they make their decisions in a year for the midterms, they know who to vote for.

“Our product is information,” he adds. “If it’s information in the form of educational content or a report on the roads, we think you should know that from an unbiased source. WXXI is information for everybody.”

Jacob Schermerhorn is a Rochester Beacon contributing writer and data journalist.

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