Missourian budget cuts reduce deficit

The paper has cut more than $1 million in expenses.

By Margaux Henquinet

Published Sept. 11, 2009

After years of exceeding its budget and operating at a large deficit, the Columbia Missourian has reorganized in an attempt to improve its financial performance.

Since changes to the Missourian, which serves as a laboratory for MU School of Journalism students, were put in place in July 2008, the paper has cut more than $1 million in expenses and approximately 40 percent of its staff. The biggest changes have been a reduction in publication, cutting the Monday and Saturday issues and a new budget, negotiated with the university, which went into effect March 1.

General Manager Dan Potter said there has been concern regarding the high deficit for years now.

"As the economy got worse and worse, we got worse and worse in our performance," Potter said. "The university told us, 'You're an important lab for us, but you have to cut your expenses.'"

Potter, the rest of the Missourian's management and the Missourian Publishing Association — the board of directors made up of MU graduates — worked together to come up with the changes.

Board of Directors President Mark Russell said there was debate over several changes, from reducing publication days to moving to a more digital form.

"We went through a variety of scenarios, and I think we've found one that works for the university," said Russell, Print News manager of the Orlando Sentinel and 1984 MU graduate.

Potter said the Missourian's management couldn't anticipate how the changes would work out, but it ended up in better financial shape than expected.

"We've been coming in below that tight expense budget," he said.

The paper is budgeted to lose about $31,500 a month, but since March, it has been operating at about -$10,000 a month since March, a difference of about $120,500 overall.

"The single biggest reason is that the advertising director and staff have worked their tails off to keep ad revenue up," Potter said.

They expected to lose advertising income after cutting issues, but they have been doing far better than they thought they would.

Another factor that greatly aided the Missourian's financial situation was an increase in the lab fee the university pays the newspaper.

"The school pays a lab fee to subsidize the educational function of the paper," Provost Brian Foster said.

Although students continued to come to the Missourian and costs of production continued to rise, the fee hadn't been raised since 2007. Potter and Dean Mills, the dean of the School of Journalism, brought up the issue with Foster, and the fee was raised.

Potter said although the paper has worked well with its budget so far, he has cautioned against getting too comfortable. The publication needs to continue to save and earn money, he said.

Potter and others were worried about how readers would react to the changes, especially the issue cuts. Potter sent letters to subscribers well before the change was made, inviting them to contact him with any concerns.

Potter said 15 "mildly to very upset" people called him, but not a single subscriber was lost due to the lower number of publications.

"They have been very understanding and very supportive," he said.

Having managed staffs through restructuring before, Potter said he knew the atmosphere in the Missourian newsroom would go one of two ways.

"Either there would be division and strife, or, as happened at the Missourian, you'd get better teamwork than ever before," Potter said. "I'm heartened this has gone so well."

Potter said he's cautiously optimistic about the Missourian.

"If things keep going the way they are, I think we should beat the budget by 50 percent," he said. "It vastly improves how much we've had to rely on the university to pull us out of the hole."

Foster said the Missourian is headed in the right direction financially.

"I think the school and the Missourian management have been very responsive in taking some very significant steps to change the deficit situation, and I appreciate their help," Foster said.

Russell is also pleased with the effects of the changes put in place at the newspaper.

"They've done a really good job of dropping some things that we didn't have to do but retaining high quality journalism, which is what we're in the business of doing," Russell said.