Contributed by Scotty McFrugal
We all have been asked (bha) to donate just a small part of our PFD checks over the last few years, so the state government may continue its unabated spending. What you should be asking yourself is, “Has your donation gone to a better use than if you and your family might have spent it yourself on food or fuel?”
Allow me to chronicle just one such questionable expense, and you be the judge:
Without naming the people involved or the organization yet, what would you think if I told you that $115,000 per year (for decades) was being spent by a non-profit monthly niche newspaper, which has been published statewide for years? If you’re asking yourself, “What the hell is the State of Alaska funding a newspaper for?”, then welcome to my world. I don’t know about you, but it doesn’t sound like one of the primary functions of government to me.
Unless you have been stranded on a remote island on the Aleutian chain, you realize newspapers have not been the hottest investment in the last few years. If you want to make a small fortune in newspaper publishing, then start with a large fortune (no names needed here). As local newspapers change ownership, reinvent themselves and discard out-of-date business models to stay afloat, this little taxpayer-funded rag operates like it’s still 1940 and they were the only game in town.
Ole Scotty here has an inside source at the paper, and that person says the newspaper has been losing money and refuses to change course. This non-profit has over three years of operating capital in CDs, and cash squirreled away (your PFD money). I bet you wish you could forward fund your household like this paper, but you aren’t state-funded. Sorry John Q Public, but this management avenue isn’t open for you. You should continue to drain your savings, sell off assets and stare a hole in the ceiling at night while you wonder if you will make it through the hard times.
My source, after a few dark Guinness drafts, revealed the real story. This person is the treasurer of this non-profit and has notified the board of directors of several irregularities that needed attention. Sloppy bookkeeping which overstated assets and questionable accounting practices that won’t survive an audit were just a few of these items. After he suggested to the board that an outside audit was needed, some of the board members began to attack him personally instead of addressing these problems. He was accused of being a bully for his tenacities in his pursuit of accountability of public funds. After the last board meeting, he was asked to resign which he declined.
The board is dominated by present and former State of Alaska bureaucrats, retired public school teachers, university employees and individuals from other NGOs. They mostly come from the stakeholders’ community, and he’s from the stockholders group. In a recent finance meeting with their accountant after discussing ways to curb some losses, the group decide that personnel, printing and outside vendor expenditures were not the problem. No surprises so far, but they voted instead to direct the outside independent contract salesperson to sell more ads. If this doesn’t solve the problem, then a cut in commission would be on the table. Any of this sound familiar?
Well, stop the press at Publisher Weekly. The answer to declining newspaper revenue is more revenue. WOW, what a concept. This isn’t surprising when you realize these are the same people running the State.
Folks, Ole Scotty wished this saga had a happy ending, but the final chapter has yet to be written. My source will most likely be booted from the board, and someone more suitable put in his place. I am sure my source will get by, somehow. We will have find a way to shine some sunlight on this boondoggle.
Just when you thought the story couldn’t get more outrageous, the board asked for and received another increase in grant funding for FY 2019. But if the State is broke, how is it possible?
Stay tuned for the rest of the story.