THE STATE HORNET

Five-Year Organizational Plan

Submitted by Holly A. Heyser,

Faculty Adviser and Professional Journalist in Residence
California State University, Sacramento
Spring 2009 (revised April 17, 2009)

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 GENERAL DESCRIPTION

The State Hornet is a student-run news organization with a weekly print publication and
a frequently updated Web site. It operates at California State University, Sacramento,
under a charter from the university and functions as a lab for the university’s journalism
students. Students make all news content decisions, and they are also employed as
advertising sales representatives. Its primary source of income is advertising revenue,
supplemented since 1999 by a student fee of $2.50 per student per semester, with about
two-thirds of the current budget from advertising. It is governed by a nine-person
publications board, constituted of faculty, administrative staff, and students. The student
staff is enrolled in three units of graded journalism credit each semester. The classes,
Journalism 197A and Journalism 197B, can be taken as many as eight semesters, allowing
students to work at the paper during their entire undergraduate experience. The
Department of Communication Studies currently provides a faculty adviser for six units of
instruction. Despite the State Hornet being a laboratory experience, students enrolled in
the class control all content in the print and online publications as they exercise their First
Amendment Rights, as formally recognized by the State Hornet Policy.

Mission statement: The best interests of the campus community are served by having a
student-run news organization that provides breaking news online, in-depth analysis in
print, and collaborates with other student media on campus.

Strengths and core competencies: The State Hornet’s key strength is its ability to provide
information about the campus that students, faculty, and staff cannot get from other
news media and to provide a training ground for any student interested in the media.

Significant challenges the organization faces now and in the near future: As with other
news organizations, the State Hornet is facing a decline in interest in reading newspapers,
a decline in interest by advertisers, and the challenge of monetizing its Internet presence.
The organization must adapt by putting more emphasis on creating an engaging product,
both in print and online, and by seeking to capture more advertising dollars online.

In addition, The State Hornet’s contract with web host College Publisher has expired,
and the newspaper is free to find a new host or develop its own site, as there is
unanimous agreement among students and staff that College Publisher does not meet the
paper’s needs, in terms of flexibility, reliability and customer service.

Long term: The five-year goal of the State Hornet is to continue improving breaking-
news coverage online and adding and improving multimedia and interactive features and
to refocus the weekly print edition on in-depth reporting, analysis and previews about
issues and events of interest to the campus community.

State Hornet Five-Year Plan/Page 2 of 2

 ORGANIZATIONAL GOALS

The State Hornet is a nonprofit business as well as a student laboratory and is required to
be self-supporting. Its dual mission is to be the campus’ main source of information and
to act as a journalism laboratory for Sacramento State students.

The changing media environment

The news media environment is shifting rapidly both in California and nationally, with
fewer people getting their news from print publications and more using the Internet as
their primary information sources. Managers of news publications need journalists who
can produce stories in stages (quick, short breaking news for web; update for web; in-
depth version for print) and produce content that integrates text, audio, video and
multimedia.

Sacramento State’s journalism program, as well as many journalism schools nationwide,

has acknowledged this shift, incorporating multimedia reporting in the journalism
curriculum.

The State Hornet needs to provide rigorous training for journalists entering this rapidly
shifting environment, teaching them not only the software and tricks of the multimedia
trade, but more importantly, the nimble, innovative mindset that is required to survive
and thrive in the new environment.

Proposed changes for the 2009-10 academic year

The State Hornet made excellent progress toward these goals in 2008-09 dramatically
stepping up video production, continuing to experiment boldly with audio slideshows.
And the print edition has made real progress toward its goal of providing in-depth news,
rather than the kind of breaking news that goes best on the web. It has also made great
strides in spring toward using more infographics that are friendly to readers’ eyes. And
the quality of copy editing has improved substantially with the addition of a healthy
corps of English majors interning as copy editors.

Recognition of the Hornet in the past year has included:

• In Fall 2008, the Hornet won an Online Pacemaker from Associated Collegiate
Press, and this year it is once again a finalist for the award.
• In Spring 2009, the Hornet won second place in Associated Collegiate Press’s
“Best in Show” award for an entire print issue.
• In Spring 2009, the Hornet won second place for sports page design from
California College Media Advisers.

State Hornet Five-Year Plan/Page 3 of 3

But work remains to be done. Some interactive elements have left the website – and
rightfully so, because they were not well used – but they have not been replaced. And
the print edition can go even further with depth, analysis and special reports. There is
also desire on the part of students to improve print design – an area in which neither the
staff nor the faculty adviser has expertise.

In 2009-10, The Hornet should:

• Retain and coach experienced staff members who can provide more depth and
analysis for the print edition.

• Continue and build on our relationship with the English Department to provide
internships for English majors who can work as copy editors.

• Establish a “projects team” that will be released from normal productivity

requirements of one story a week to focus on high-quality, in-depth, investigative
and public service reporting. This was planned for 2008-09 but never came to
fruition because of a lack of deeply experienced staff.

• Contract with a new newspaper hosting service prepare for that transition over
summer break.

• Continue deploying mobile journalists, or “mojos,” who wander the campus

with camera, video recorder and laptop to report breaking news and other
happenings.

• Hire or provide internships to students from Digital Media and Computer

Science who can help develop innovative content for the website and help train
staff.

• Hire or provide internships to students from the Design Department who can
help improve the design of the State Hornet print edition.

• Explore potential partnerships with radio to maximize the reach of students’

content, and makes the public aware of the campus’ main news source.

• Ensure that our online content satisfies the accessible technology provisions of
Executive Order 926 (http://www.calstate.edu/EO-926.html).

• Continue seeking recognition for innovative work both on our website and in
print, establishing ourselves as leaders in college media. To do this, the students
must continue innovating, as well as improve the quality of innovations that
occurred in 2008-09.

State Hornet Five-Year Plan/Page 4 of 4

The role of the faculty adviser/professional journalist in residence

In 2008-09, the board doubled its budget for the faculty adviser in her capacity as
business manager, agreeing to “buy out” 6 units of her teaching time each semester
starting Fall 2008. In spring, the Hornet had to cut back to buying out 3 units because
declining ad revenue necessitated budget cuts. But there is agreement that the Hornet
should resume paying for 6 units per semester of management time.

With the additional time in the Fall, the faculty adviser implemented a regular weekly
marketing program that promotes the print edition; devised press passes that can be
produced each semester; and began a program of more careful monitoring of the
newspaper’s expenditures to spot any problems early.

She also worked with the Digital Media faculty and Creative Services to develop a set
students can use in the television production studio (LIB 58B) to produce talk-show-style
videos.

She worked to retain those programs even after her time was cut back, but the addition
of another class to her schedule seriously compromised her ability to spend time at the
Hornet.

With the resumption of the 6-unit buyout, the adviser should continue those established
programs and work to improve management in these areas:

• Inventory control and equipment check-out procedures.

• Recruitment of editorial and advertising staff and interns from across disciplines
in the university.
• Routine management coaching for editors.
• Development of an online advertising program.
• Explore news rack advertising.
• Developing a regular equipment replacement plan

The role of the Publications Board

The State Hornet is an independent student newspaper, as defined in the State Hornet
Policy. The Publications Board is the official publisher of the newspaper. This board must
be able to provide professional expertise and guidance during this critical evolution of
multiple publications and a shift in revenue sources. The Board should:

• Consider changes to the composition of the board, such as adding other faculty
with experience in public relations, marketing and sales. Such additions would
likely bring additional resources and cooperation to the newspaper.
• More aggressively recruit students not associated with the journalism program to
run for the elected at-large board positions.

State Hornet Five-Year Plan/Page 5 of 5

 FINANCIAL CONSIDERATIONS

The State Hornet’s primary sources of funding are advertising and a student fee. In 2009,
a significant change to the allowed uses of the fee was approved by President Alexander
Gonzalez: In addition to using the funds for rent and printing, the newspaper can now
tap the money for web publishing and student stipends.

Because enrollment is not expected to grow significantly in the climate of state budget
cuts, the newspaper needs to seek to increase student fee revenue via a 50-cent-per-
semester fee increase, which would make up for value lost to inflation since the fee was
approved in 1999. The Hornet made such a proposal in 2008-09, and the results of the
process are not final, but if the fee increase is not approved, the newspaper should try
again in 2009-10.

The newspaper also needs to redouble efforts to retain and recruit advertisers.

News rack advertising

The State Hornet should explore acquiring news racks that include space for poster-sized
advertisements that could be sold to current or new advertisers, providing a bold
presence that would be seen even by students who don’t pick up the newspaper. This
involves:

• Assessing the cost of such news racks.

• Understanding the requirements of producing, distributing and maintaining the
news rack ads.
• Ensuring that the program would not conflict with university policy concerning
advertising.

Advertising sales representatives

The advertising manager is a reliable resource who’s familiar with advertisers, diligent
about maintaining current advertisers and knowledgeable about cyclical changes in
demand for advertising. What she needs to increase advertising revenues and bring new
advertisers to the newspaper is an aggressive student sales force.

The faculty adviser and ad manager will work together to recruit talented students from
academic programs where they could reasonably expect to be found, including business,
marketing and public relations.

The newspaper will take advantage of training opportunities for sales reps provided by
college newspaper organizations.

State Hornet Five-Year Plan/Page 6 of 6

The adviser, ad manager and ad sales team will work aggressively to promote online
advertising opportunities, recruit advertisers for this medium and ensure that advertisers
see results directly attributable to online advertising.

Revenue projections

The State Hornet’s primary revenue sources are advertising and a dedicated student fee
of $2.50 per semester. For 2008-09, student fee revenue was projected to be $130,000
and advertising revenue, $222,000.

While the fee revenue projection is likely to be on target, advertising revenue will come
in substantially below target due to the loss of two major clients and a slump in
advertising attributable to the poor economy. Revenue projections for 2009-10 will be
downgraded to $200,000.

Ongoing expenses

Other than employee expenses, which are discussed below, the State Hornet’s main
expenses are printing and rent for its space in the University Union.

Occupancy: The chair of the Business Advisory Committee negotiates the yearly rent.
While the University Union has typically raised the rent for the Hornet each year, it is
hoped that the rent will stabilize.

Printing: Our printing needs are met by outside vendors who bid each year. In 2008-09,
the Hornet switched from the Grass Valley-based Union to Sacramento-based Herald
Printing, substantially lowering print costs. The Herald, which had an option to extend its
contract with the Hornet by mutual agreement, agreed to do so, lowering its base
printing price 5 percent in 2009-10 to remain competitive.

State Hornet Five-Year Plan/Page 7 of 7

Employee expenses

The State Hornet’s other large expense is employment. The paid employees of the State
Hornet include the advertising director, advertising representatives, one-fourth of the
faculty adviser’s salary and student editors.

Technical support

The Hornet has for some years now received technical support from the College of Arts
& Letters IT staff. However, the IT staff has had minimal time available for the Hornet, so
its newsroom computers are not functioning well or efficiently.

The Hornet is actively pursuing alternative arrangements, the most viable being an
arrangement with the College of Engineering & Computer Science to provide paid interns
who can supply technical support 10 hours per week.

Five-year projections

Detailed five-year financial projections appear as Appendix I – an attached Excel

spreadsheet.

OPERATIONAL NEEDS

With the recent addition of new computers, a new server, new furniture, and new
audio-visual equipment, the newspaper now needs to shift into a schedule of
maintenance and regular modest upgrades.

Replacement policy

The State Hornet will attempt to replace broken, worn-out or outdated equipment, but
it will not replace stolen equipment. Theft of photo equipment has been a problem for
the past two years, and The Hornet should not have a policy that encourages theft by
quickly replacing stolen equipment; the victims of theft by students will be fellow
students trying to produce the newspaper.

Equipment and software needs

Among the organization’s equipment needs over the next five years:

• Purchase of replacement low-end and mid-range audio recorders in the next 2-3 years
($100-$300 apiece)

• Continued computer replacement of standard desktop computers, potentially 3-5 over

the next five years ($1,000 apiece)

State Hornet Five-Year Plan/Page 8 of 8

 • The purchase of updated software needed for audio, video and photo editing, as
well as newspaper design.

A possible source of funding for these purposes is the State Hornet’s equipment reserve
fund.

Training needs

Essential to reaching our goal of a vibrant online information source and a training
ground for future journalists who can work across media will be providing the student
staff the training necessary to work toward that goal. This will be achieved in several
ways:

1. Through interaction with the faculty adviser, who provides editorial support, oversees
the business operation and is the instructor of record for the journalism laboratory
classes.

2. Through the use of journalism consultants, either from the faculty or from the ranks of
regional professionals. Consultants may be paid, subject to the availability of funds.

3. By sending staff to professional training sessions put on by Associated Collegiate Press,

the California College Media Association and similar organizations.

4. Mandatory ongoing training through the semester, to be organized by the faculty

adviser and editor in chief.

State Hornet Five-Year Plan/Page 9 of 9

Appendix 1 (see attached spreadsheet)

State Hornet Five-Year Plan/Page 10 of 10

Appendix II

State Hornet organization

The State Hornet is a daily news operation, with daily publication online and a weekly
print newsmagazine.

Staff organization

Editor-in-chief – Big picture/organizational goals

Print managing editor – Coordinates weekly print edition
Online managing editor – Coordinates daily web coverage
Photo editor
Graphics editor
Multimedia producer
Print news editor
Online news editor
Print features editor
Online features editor
Print sports editor
Online sports editor
Opinion editor

Daily operation

The State Hornet’s website is a 24/7 operation, with the primary work occurring during
the day on weekdays and sports coverage going online on game days and evenings.

The online editor will constantly evaluate the importance of incoming news to determine
which stories should be featured most prominently, with the default position being
newest story first. The online editor will also evaluate all incoming breaking news and
determine in consultation with appropriate print editors which stories should be
developed further for the weekly print edition.

Copy flow: Reporter > Online editor > Copy Editor > posted

Weekly newspaper

Content will be longer form, with stories of more depth and analysis. The editor will
work with the various section editors to enlist reporters to work these stories. The
magazine may also feature the best of the week’s online stories.

Copy flow: Reporter > Assigning editor > Copy Editor > M.E. or EIC > page design

State Hornet Five-Year Plan/Page 11 of 11

 State Hornet Newspaper
5-Year Projections

Appendix I 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Not Yet Final Proposed Budget Draft Draft Draft Draft
Unrestricted Restricted Unrestricted Restricted Unrestricted Restricted Unrestricted Restricted Unrestricted Restricted Unrestricted Restricted

Sources of Funds
Advertising $ 201,688 $ 200,000 $ 210,000 $ 220,500 $ 231,525 $ 243,101
Student Fees 133,448 133,448 135,000 148,500 154,000 154,000
Transfer from reserve 25,000 17,000 9,000 4,000 6,000
Investment Earnings
Total, Sources of Funds $ 201,688 $ 133,448 $ 225,000 $ 133,448 $ 227,000 $ 135,000 $ 229,500 $ 148,500 $ 235,525 $ 154,000 $ 249,101 $ 154,000
$ 335,136 $ 358,448 $ 362,000 $ 378,000 $ 389,525 $ 403,101
Uses of Funds
Stipends 57,154 21,338 72,802 12,198 74,723 10,277 74,799 20,201 77,983 22,017 86,778 18,222
Commissions 6,000 10,000 10,000 10,000 10,000 10,000
Wages 25,603 26,371 27,162 27,977 28,816 29,681
Payroll Taxes Estimate 8,844 8,844 9,385 9,666 9,956 10,255
Worker's Comp 2,734 3,738 3,763 4,096 4,276 4,456
Health Insurance 5,310 5,310 5,310 5,310 5,310 5,310
Pension 2,521 2,521 2,521 2,521 2,521 2,521
CSUS Salary Reimbursement 27,128 36,170 36,279 36,387 36,497 36,606
Vehicle Maintenance 200 200 200 200 200 200
Printing 55,400 57,339 59,059 60,831 62,656 64,536
Web hosting 5 500
5,500 5 500
5,500 5 500
5,500 5 500
5,500 5 500
5,500
Tech support 5,000 5,000 5,000 5,000 5,000
Software 3,000 3,000 2,000 2,000 3,000
Awards 100 100 100 100 100 100
Travel 4,150 5,000 5,500 6,000 6,500 7,000
Occupancy 56,710 58,411 60,163 61,968 63,827 65,742
Telephone 4,365 5,000 5,000 5,000 5,000 5,000
Postage 850 1,000 1,100 1,200 1,300 1,400
Copying - - - - - -
Supplies 3,500 3,000 3,300 3,600 3,900 4,200
Dues & memberships 600 600 600 600 600 600
Subscriptions 900 950 950 950 950 950
Meeting Expense 270 250 250 250 250 250
Promotion/Marketing 800 1,500 1,500 1,500 1,500 1,500
Equipment 3,000 3,000 3,000 3,000 3,000
Credit Card Charge 850 1,700 1,700 1,700 1,700 1,700
Insurance (Libel) 3,000 3,000 3,000 3,000 3,000 3,000
Allowance for Bad Debt 3,330 3,000 3,000 3,000 3,000 3,000
Misc. administration
Outside Services/consultants
Contribution to Contingency Fund
Subtotal, Expenses $ 158,209 $ 133,448 $ 202,056 $ 133,448 $ 206,342 $ 135,000 $ 207,856 $ 148,500 $ 213,359 $ 154,000 $ 225,507 $ 154,000
ASI Admin Expense (6%) $ 17,499 $ 20,130 $ 20,480 $ 21,381 $ 22,042 $ 22,770
UNRESTRICTED FUNDS NET $ 25,980 $ 2,814 $ 178 $ 262 $ 125 $ 824
RESTRICTED FUNDS NET $ 25,980 $ 0 $ (0) $ 178 $ 0 $ 262 $ (0) $ 125 $ (0) $ 824 $ 0
TOTAL FUNDS NET $ 25,980 $ 2,814 $ 178 $ 262 $ 125 $ 824