CapRadio’s financial woes lead to $2 million grant in California funds being placed on hold

Capital Public Radio’s financial woes worsened this week as $2 million in state funding was put on hold because of the scandal surrounding the public broadcaster’s operations.

Assemblyman Kevin McCarty, D-Sacramento, said he asked that the funding, which had been designated to help with the NPR affiliate’s planned move downtown, be placed on hold until audits of the operation are conducted.

“I felt it was the prudent thing to do,” McCarty said.

The funding was part of state allocations that went to the city of Sacramento, and the City Council placed a hold on the funds at McCarty’s request, he said.

CapRadio operates under a license held by Sacramento State, which assumed operational control of CapRadio’s business operations in September after an audit revealed widespread financial mismanagement.

“We are going to be looking for other sources of funding to make up for it,” Sac State spokesman Brian Blomster said.

CapRadio also was expecting $850,000 in federal funding pending in Congress that had been requested by Rep. Doris Matsui, D-Sacramento, and earmarked for equipment at the planned downtown operation.

The plan to move off campus to two downtown buildings helped drive CapRadio into financial trouble, and Sac State officials say no decision has been made yet on whether to proceed with those plans.