To address severe financial and operational challenges at Capital Public Radio, the group’s endowment has proposed that Sacramento State should transfer control of its radio operations to KVIE-TV, a PBS nonprofit affiliate.
This recommendation aims to alleviate Sacramento State of its financial burdens while enhancing public media integration within the community.
Despite the endowment’s push for this merger, Sacramento State remains committed to the Northen California NPR affiliate. The University has expressed openness to dialogue with KVIE representatives but has shown no inclination toward relinquishing CapRadio.
The university’s stance comes after they assumed control of Capital Public Radio’s operations in September 2023, following a detailed audit that exposed significant financial mismanagement, including unauthorized loans exceeding $1.1 million, mismanaged credit cards, and unapproved acceptance of gifts. The investigation revealed a sharp increase in the station’s liabilities, soaring from about $5.5 million to over $27.2 million within a year.
The endowment board has raised concerns over CapRadio’s financial management, citing a need for strategic collaboration with KVIE to ensure the station’s future viability and continued service to Sacramento. This comes in the wake of financial missteps, including an aggressive expansion that led to layoffs and program cutbacks.
The endowment’s letter to Sacramento State President Luke Wood, obtained by The Sacramento Bee, underscores a collective desire among major donors for a sustainable path forward, emphasizing the potential benefits of a merger for the station, the university, and the local community. The Capital Public Radio Endowment owns $4 million in assets, including a transmission tower and land.
