For the first time since 2007, Texas Student Media (TSM), now under the domain of the Moody College of Communication, will not have to pull from its reserves at the end of the fiscal year.
TSM, which manages five student-produced media properties — Cactus Yearbook, Texas Travesty, Texas Student TV, KVRX 91.7 FM and The Daily Texan — has been under severe financial constraints for the last several years.
In a TSM Board meeting Friday, director Gerald Johnson said TSM will receive an allocation of up to $250,000 annually from the office of President William Powers Jr. to help cover anticipated deficits in the next three years. The allocation, which Johnson called a “budget mitigator,” will come at the end of the fiscal year.
“The collective financial assistance that we’re being given really stops the organization from having to continually pull from our reserves at the rate we’ve previously had to do every year,” TSM Board President Mary Dunn said. “It allows us to focus more on innovation and creating a better educational experience rather than focusing on stopping the financial bleed that was potentially going to kill the organization.”
Dunn said TSM’s reserves, or savings, are currently sitting at under $200,000. If TSM is under budget at the end of the fiscal year, then the organization can pull from the budget mitigator allocation. In recent years, TSM has had to withdraw close to $200,000 annually from its reserves.
“It’s definitely not all solved,” Dunn said. “This is the very crucial first step, and it’s a significant first step in the right direction. So going forward, it’s imperative that we continue to figure out the most effective and efficient way of spending money and making money.”
Johnson also announced utility costs for the William Randolph Hearst building, which houses TSM, are now covered by the Moody College. This will save TSM an estimated $70,000 annually.
“This is fantastic news,” Dunn said. “This is exactly the kind of information we’ve been hoping and begging for.”
Additionally, in a few years, TSM will begin receiving 4.5 percent interest from a $1 million endowment earmarked by Moody dean Roderick Hart, according to Johnson. The endowment is part of a $50 million donation to the college from the Moody Foundation.
“Having that endowment creates a vehicle for which other people can contribute, and there’s an establishment down the road that, if we find other donors, we can ask them to enhance the endowment,” Johnson said. “And over time, it could potentially grow to the point where it’s providing a substantial portion of the support we need.”
Arjun Mocherla, vice president of the TSM Board, said the $1 million endowment and financial support from the Office of the President could be the end of TSM’s financial woes.
“I think this is a good year for TSM,” Mocherla said. “It pretty much signifies the beginning of upward momentum for Texas Student Media.”