Capital Public Radio‘s interim president and general manager, Tom Karlo, who was brought on board to guide the Sacramento-based stations amidst significant financial and managerial challenges, has announced his impending resignation, to take effect February 29.
This announcement came during an emergency board meeting. Following Karlo’s exit, CapRadio’s director of technology, Frank Maranzino, will step in as the interim leader. Karlo joined CapRadio in August following a critical audit from the California State University’s Office of the Chancellor.
The audit highlighted unauthorized financial activities, including unapproved loans exceeding $1.1 million and a dramatic increase in liabilities from about $5.5 million to over $27.2 million in a year. In response, 12% of CapRadio’s workforce was laid off due to financial difficulties exacerbated by the pandemic, declining revenue, and costs associated with new headquarters construction.
Sacramento State university holds the licenses for CapRadio’s stations, KXJZ and KXPR, and oversees operations for North State Public Radio, owned by Chico State.
Under Karlo’s guidance, CapRadio saw improvements in core business operations and listener engagement, as the station is still operational despite a real potential of running out of funds by January found last fall.
In a statement, Sacramento State President Luke Wood said, “Listenership is up, donations are up, our contract with NPR is now secured through 2028, he’s helped pave the way for rightsizing the budget, and CapRadio sounds better than ever before. Tom worked tirelessly to stabilize operations and rally community support during a difficult time.”
