European Stars and Stripes (Newspaper) - April 22, 1994, Darmstadt, Hesse                                Army leaders wary on raising taxpayer Aid to newspapers by Chuck Vinch and Joseph Owen staff writers some top army officials insist they want to see the stars and stripes continue publishing in Europe and the Pacific but other senior officers balk at the Prospect of using arty funds to further subsidize the two Money los in newspapers. Both the european and Pacific editions of the new spa or Are losing a major pillar of financial support when by amp 1 the military Exchange services take Over stars Ana stripes bookstores. Even with the bookstores the european operation has lost about $6 million a year for More than two years although the loss rate diminished in the most recent fiscal Quarter. By last week newspaper circulation had fallen to an average of 55,716 daily according to the papers commander air Force col. Steven s. Hoffman. That figure is less than half of the redraw Down circulation level and reflects the number of troops withdrawn from Europe since 1991, the paper has been Able to cover Many of its losses from an in nouse investment fund established in the late 1970s. Conversely when the stars and stripes was making Money prior to the draw Down it regularly contributed dividends to the army and the other services to support various morale welfare and recreation activities. The army is the Quot successor in interest to the stars and stripes which Means it is obliged to cover the papers opera Ting losses with no appropriated morale welfare and recreation funds administered by the Community and family support Center. So far that has been unnecessary Hoffman said. Quot we have not received any funds from them a a he said Quot albeit we have requested that should we need funds  be Able to provide some for  but if Congress recommendations Are adopted the army wont have to subsidize the newspapers with no appropriated funds after the Bookstore Transfer. In drafting the fiscal 1994 defense authorization act Congress recognized that the bookstores traditionally have been the papers financial Backbone. Lawmakers said that once the bookstores Are gone appropriated funds a tax dollars a should cover the portion of the stars and stripes budget not supported by sales and advertising Revenue. However Congress did not appropriate Money for that purpose. If that is to happen it will be part of the fiscal 1993 budget process this summer and fall. The use of tax revenues to subsidize the stars and stripes would put the publications in a similar status As the armed forces radio and television service which is com Sullivan. A a is amps  the european edition of the stars and stripes located in Griesheim Germany is waiting to hear about its financial Fate. Petely tax supported. The annual appropriated fund budget for the main arts facility in Sun Valley calif., runs about $25 million for business and operating costs and civilian salaries. That figure does not include the operating costs of the various worldwide affiliates which Are funded out of theater command budgets. The fiscal 1994 operation and maintenance budget for the american forces network Europe is $11.1 million while the civilian work Force budget is $4.5 million. In addition an Europe and its affiliates have 226 Active duty military personnel attached or assigned More than 10 times the number of service members assigned to the stars and stripes. Regardless of which pot of Money the funding comes from a appropriated or no appropriated funds a the a \ s everything you take to subsidize a newspaper Simoney that a not available to buy a tank Fly a helicopter or increase a soldiers pay Quot Quot v a . Merle Freitag it i a a \ ,.w Iha army s comptroller army would have a Tough time financing the newspapers a senior budget officer said. Quot everything you take to subsidize a newspaper is Money that s not available to buy a tank Fly a helicopter or increase a soldiers pay a it. Gen. Merle Freitag the army a comptroller said in an interview. Quot we want the news service for our soldiers and their families. But if we can avoid yet another Drain on appropriated fund dollars then wed like to do  the european and Pacific editions of the stars and stripes together Are receiving $9.6 million in appropriated funds from the army this year according to a memo signed by Gen. Gordon r. Sullivan the army chief of staff. The european edition gets slightly More than half of those funds while the Pacific edition based in Tokyo gets the rest according to army officials. That Money pays for such things As utilities repair Quot and maintenance and the salaries of military personnel assigned to the papers. The european editions 552 employees include 19 Active duty service members. In his memo Sullivan said the two editions will need an additional $10 million to $15 million a year in combined appropriated fund support after they lose the Bookstore reve nue.  v. A a a. But the fact that the army has backed potential stars and stripes deficits with Naf Money in the past does no to necessarily mean the service will Bear the Burden of appropriated fund support for the papers after the Bookstore Transfer said Jordan Rizer director of the american forces information service the defense department Agency that oversees the newspapers. A that would be a defense department requirement a he said. The european newspaper s Board of directors was to learn about the newspapers current financial condition when it held a regularly quarterly meeting thursday. Advertising Revenue has increased 16 percent since the defense department changed the rules under which advertising can be accepted Hoffman said. Also the newspaper has increased its Market penetration from a pre draw Down 30 percent of potential readers to 45 percent today. He  a a a a a in any event newspaper sales and advertising revenues generate enough Money so that subsidies from a Propri i stripes is a remarkably inexpensive and essential Factor in the morale of troops overseas a he said. Quot i done to know of any similar tool with the exception of arts that reaches so Many troops so effectively on a daily  . Army it. Gen. Richard f. Keller the . European come chief of staff said that in planning the newspapers future Quot we have an obligation to create an organization that is As self sufficient As possible without detracting from the primary Mission the Effort to increase the paper s self sufficiency depends on the outcome of the Bookstore Transfer negotiations Hoffman said adding that stars and stripes officials have agreed not to speak publicly about the details of those  Page 4 unpractical too expensive or cuts away at the package of features and news that comprises the stars and stripes in a Way that service members would find unacceptable a Monroe said. Quot suffice it to say that there is no alternative to stars and stripes a said air Force col. Steven s. Hoffman the european newspapers commander. A a it a a unique paper that serves a vital Quality of life need for. All the Consumers that we  senior commanders agree. . Army Gen. John m. Shalikashvil former supreme Allied commander Europe and now chairman of the joint chiefs of staff wrote Congress last year supporting the european edition. Quot simply stated Quality of life is every bit As much a readiness Issue As training maintenance or equipment and i place a very High Premium on stripes for that reason a the general wrote. A readership poll taken last year showed that 79 percent of the newspapers readers rate the stars and stripes As important to the Quality of life said civilian editor Bernard a. Zovistoski. Quot two thirds of stripes readers do not read any other newspaper a Zovistoski said. The figures indicate that Quot we have a phenomenally Loyal readership a one that truly relies on us for news and  Quot historically stripes has been our Peoples Home town newspaper a  army it. Gen. Richard f. Keller chief of staff for the . European come said in a written response to a query this month. The newspaper a plays a critical role in keeping our people informed he said. But Freitag said arguments of historical importance Arentt enough reason to fund a newspaper. Quot we re walking away from All sorts of historic missions because we can no longer afford them a Freitag wrote in his March 17 memo. In an interview Freitag said the army has no axes to grind regarding the newspaper. A the stars and stripes has provided tremendous it it to soldiers and families around the world a he Suppo sail. Quot the memo i wrote was to express disappoint because i did t think ment in the study that was done it took a reasonable balanced approach. A better approach he said would be to Start at Quot Square one and look at the Basic question of what Type of news and information military members overseas need and How that need can Best be met in a Cost effective Way. Quot if the answer comes out to be the stars and stripes with an appropriated fund subsidy that a Fine a he said. Quot but there needs to be Art objective balanced  the draft study he said a was very  one alternative in the draft that merits further review Freitag said is reducing the current stars and stripes format to a military oriented supplement to be inserted into another publication such As Usa today. The idea does not sit Well with military officials in Europe. A. Quot i do not believe we can simply suggest commercial newspapers can duplicate stripes role a Keller said. A nor do i believe that an insert or supplement to an existing commercial newspaper would adequately  a there simply is not an acceptable alternative to the stars and stripes said Gen. Robert c. Oaks commander of . Air forces in Europe in a letter to Neucom last autumn. Freitag said the study a ninth and last option a shutting stars and stripes Down a is in no ones interest. �?o1 done to think anyone has Ever proposed just terminating operations a he said. A that misses a very important ingredient of our responsibility to