After severe financial mismanagement was revealed by a 2023 audit of Sacramento’s Capital Public Radio, the public radio operator is making strides to get back on track, cutting its overall debt by $2 million since July.
The station’s $9.7 million debt includes $2 million owed to vendors and $7.7 million to Sacramento State University. The university had backed an $8 million loan for tenant improvements at two Downtown projects: a planned headquarters that was ultimately abandoned and an event space set to open next year as a learning lab in partnership with Sac State.
To address its debts, CapRadio has begun repaying Sac State through in-kind services, such as hourly on-air announcements promoting the university, reducing its debt by $220,000 monthly.
CapRadio’s Chief Marketing and Revenue Officer Chris Bruno noted that the audit reflects the station’s first opportunity to showcase progress made since Sacramento State took over its financial operations in 2023.
Other efforts to stabilize finances included a 15% staff reduction, reducing payroll by $2.5 million, and increasing membership support by 9% during the past fiscal year.
Sacramento State spokesperson Lanaya Lewis said, “We are pleased with the progress that CapRadio has made to stabilize its finances. The strong community support and rising listenership continues to show that CapRadio’s trusted, independent local journalism is critical to communities throughout Northern California.”
Despite these efforts, auditors still expressed concerns about CapRadio’s financial solvency, citing net asset deficiency and ongoing investigations by the Corporation for Public Broadcasting. The station did not receive its usual $1 million CPB grant this year due to these investigations.
The Sacramento County Sheriff’s Office is also involved, investigating vague payments and potential conflicts of interest.
Looking ahead, CapRadio’s approved 2025 fiscal year budget projects $13.5 million in revenue and $13.2 million in expenses. Management has also taken steps to implement compliance updates for all 42 recommendations from a prior Cal State audit and increase news production with additional reporters.
