Capital Public Radio’s interim chief announces departure in closed ‘emergency’ meeting

The man brought in to stabilize Capital Public Radio’s operations after a scathing audit found mismanagement and severe financial problems abruptly announced Thursday night that he was stepping down at the end of the month.

Tom Karlo, interim president and general manager of the Sacramento State operation since August, made the announcement during a closed emergency board of directors meeting Thursday night, according to an announcement from CapRadio.

Agenda materials for the meeting described it as an “emergency closed session” and listed only a “personnel matter” as the topic for its closed session.

Karlo will serve through Feb. 29, after which CapRadio’s director of technology, Frank Maranzino, will take over as interim leader, the broadcaster said.

“This moment is bittersweet for me,” Karlo said in the statement. “CapRadio is in a much better place than it was six months ago, but there is still a long road ahead for the organization.”

Karlo, a longtime Southern California public broadcasting executive with 47 years of experience, was brought in last year at the urging of Sac State President Luke Wood to take over as CapRadio’s financial problems became apparent and layoffs were announced at the National Public Radio member operation.

An audit by the California State University’s Office of the Chancellor in October found widespread problems, including a lack of controls over spending, severe financial shortcomings that threatened the future of the operation and a lack of opportunities for students.

The operation’s financial problems came as CapRadio was moving forward with ambitious expansion plans to leave the Sac State campus and move into two downtown Sacramento buildings.

Sac State owns the license for CapRadio’s two stations — KXJZ-FM (90.9) and KXPR-FM (88.9) — and CapRadio also operates North State Public Radio, which has two stations owned by Chico State.

The university announced it was taking control of CapRadio’s operations, except for news and programming content, in a move that eventually led to the mass resignation of CapRadio board members.

CapRadio’s announcement that Karlo was leaving lauded his progress in “stabilizing core business operations,” but added that “CapRadio is still in a precarious financial position due to its debt obligations and two 15-year leases at the yet-to-be-occupied new headquarters and events venue in downtown Sacramento.”

Wood issued a statement thanking Karlo for doing “a meritorious job in helping to save CapRadio.”

“Listenership is up, donations are up, our contract with NPR is now secured through 2028, he’s helped pave the way for rightsizing the budget, and CapRadio sounds better than ever before,” Wood said. “Tom worked tirelessly to stabilize operations and rally community support during a difficult time.

“Ten years from now, when we look back and CapRadio is still going strong, it will be because of Tom Karlo’s time as GM at CapRadio.”

This story was originally published February 16, 2024 at 9:16 AM.