1. Understanding the PBS Dues Formulas Round Robins – Fall 2006

2. Key Principles Dues formulas are based on the “ability to pay” –The NPS, MSA, and SIP assessments use a “collective” base: the total budget is split up among all participants –A “Purchase Power” factor in formulas adjusts for partial participants CPB Data are the best available measures for comparing member stations financially –NFFS, NPF, and CSG; reporting lags carry through into formulas

3. Member Weighting The Two Member Weighting Mechanisms: vs. Averaged PPF More Sophisticated Weighting Mechanism Used for NPS and SIP Average PPF uses three most recent annual PPFs in order to soften dramatic year-to-year changes CSG Factor Simple Proportion Used for MSA formula the individual CSG versus the sum of all CSGs

4. The PPF The Annual PPF, or Program Pricing Factor, is a more sophisticated, nuanced member weighting FY 2007 Adjusted Budget size = 2004 NFFS (most recent figure reported to CPB) -2003-04 NPF (matches NFFS; certified by station CFO) +2006 CSG (one year prior) – Credit for Multiple Transmitters (in excess of 1) Population base equals the lesser of: Grade A transmitter coverage, 125% of Nielsen DMA, or, state population (state networks) CSG Factor Uses previous year’s CSG values 45% x Adjusted Budget 30% x Population Base + 25% x CSG Factor PPF ***As any of these variables change year-to- year, so will your PPF – and that will, in turn, affect your NPS and SIP dues.*** + = +