Steve Adubato Jr.'s role at center of deal allowing WNET to manage N.J.'s public television raised cries of political cronyism Watch video
New Jersey Network will be run by a newly created subsidiary of WNET, Channel 13 in New York. TRENTON — It’s a deal aimed at saving New Jersey’s bankrupt public television network.
And the guy behind it is the well-regarded head of a nonprofit TV production company who has won Emmy awards and critical acclaim for shows about New Jersey.
But Steve Adubato Jr.’s latest role at the center of the deal allowing WNET to manage New Jersey’s public television has raised cries of political cronyism, with some key Democrats charging the agreement is a gift to Adubato’s father — Stephen Adubato Sr., the feared and well-connected political dealer known to most as "Big Steve."
While Adubato’s company, Caucus Educational Corp., didn’t submit a bid for the right to manage the TV network, and its name isn’t on the contract the state signed last week with WNET Channel 13, his involvement with the bid has sparked controversy from many corners and growing questions about what is in it for the younger Adubato if the deal goes through.
One union official last week said the bid to replace New Jersey Network was wired from the start.
"I have no idea what he is talking about," said Adubato, 53. "All I know is a quality bid was put in by WNET, and we’re proud to be a part of it."
WNET beat out Montclair State University, which proposed a "lower-cost alternative" to NJN that would preserve the station’s nightly newscast and involve university students and faculty to produce original programming. The university promised to raise $7.2 million toward a lineup of new shows on education, arts and culture, health and environmental affairs that would not be repeats of PBS shows available to viewers on other stations (including Channel 13).
Adubato and Neal Shapiro, president and CEO of WNET, stood next to Gov. Chris Christie last week when he announced the state had reached a deal with the New York-based public broadcaster to manage the state’s TV network. The deal comes 14 months after Christie first called for New Jersey to get out of the TV business. It also included word of the sale of NJN’s radio licenses to New York and Philadelphia public radio giants WNYC and WHYY.
Adubato said his participation in WNET’s bid makes sense because he has co-produced shows with the flagship PBS station for 23 years.
"When it became clear the NJN model would no longer exist, we were asked to be part of a larger network," he said. "It is not only exciting and challenging, but something that could be very beneficial to the citizens of the state."
‘I WASN'T A BIDDER’
Adubato did not attend an Assembly Budget Committee hearing Thursday, where lawmakers grilled state Treasurer Andrew Sidamon-Eristoff and Shapiro about their plan. Adubato said he wasn’t asked to testify ("I wasn’t a bidder"), and he didn’t watch or listen to the more than five hours of testimony.
"I can only focus on how to produce quality public affairs programming, and seek the underwriting to make it," he said.
A Montclair resident, Adubato has a 20-year broadcasting career that includes four regional Emmy awards for hosting his own series, as well as appearances on CNN, NBC, Fox News and CNBC. The author of three books and a weekly column published in The Star-Ledger, he earned a doctorate from Rutgers University and lectures on communications and leadership.
Adubato is a registered Democrat who holds the distinction of becoming the youngest state lawmaker when he won an Assembly seat in 1983 at the age of 26.
He launched Caucus Educational Corp., or CEC, with the "Caucus: New Jersey" program in 1986. Since 1991, that show and "One on One with Steve Adubato," "New Jersey Capitol Report" and "On The Line" have aired on WNET (and on WLIW when that Long Island public broadcaster merged with WNET). NJN began broadcasting them in 1991, and they can be viewed on WHYY in Philadelphia as well as other cable stations, including FIOS 1.
GRANT CONTRIBUTIONS
According to its federal tax return from 2009, the most recent year available, CEC raised $2.2 million in contributions and grants. Its underwriters include many large corporations, such as Prudential, Merck, PNC Bank and New Jersey Natural Gas. It also has support from nonprofit groups, including the St. Barnabas Healthcare System and New Jersey Education Association, and private foundations such as Robert Wood Johnson, Russell Berrie, Amelior, Victoria and the Fund for New Jersey.
CEC is governed by a 15-member board that includes two members of Gov. Chris Christie’s transition team, former Republican governor Christie Whitman’s commerce secretary and two prominent Essex County executives, Ralph Ciallella and Adrianne Davis. Both also serve on the boards of Adubato’s father’s charter school in Newark.
Steve Adubato Jr. greets Gov. Chris Christie after the state's chief executive spoke at "A Celebration of Hope" at the North Ward Center in Newark in January 2010.Christie politically ally and close friend Bill Palatucci was a board member until last year.
In 2009, Adubato earned $341,000 as president and CEO, representing 40 percent of the $852,000 the company spent on employee compensation for its nine-member staff.
Shapiro told lawmakers last week that WNET doesn’t pay Adubato for his programs because, like most independent production companies, Caucus raises its own money.
"There’s no cash," Shapiro said when asked if any state money would go directly to Adubato. "WNET doesn’t pay Steve anything now. We won’t pay Steve anything with this new company."
Shapiro emphasized CEC will be one of many partners, but that WNET will be in charge.
"We would operate the station, we would make those editorial decisions, we will operate the news show — and though we may invite Steve to be on the news show, he’s not involved in the daily show," he said. "Steve’s company will be a provider of content, and we are already in discussions with other providers."
INCREASING VIEWERSHIP
Adubato said the reason he’s involved with the new venture is to increase the number of viewers for his shows, which leads to more underwriting support and the ability to do more shows. He noted that he has never received — or even applied for — state funding for his programs.
"It’s not that complicated. This means more opportunities to do programming on health care, education, the environment, the arts, and more opportunity for people to see it, so hopefully we can continue to attract underwriting support," he said.
But Adubato’s political connections have raised eyebrows.
"Any programming deal for the state where the people involved are directly and indirectly involved with any political faction, has to be a concern. I don’t care who it is," said Jeff Tittel, director of the New Jersey chapter of the Sierra Club.
State Sen. Dick Codey (D-Essex) griped that the deal was done last fall, while Assemblyman John Burzichelli (D-Gloucester) said WNET was a natural bidder.
"This is not WNET’s first interest in being involved in New Jersey public broadcasting. I don’t find WNET to be a surprise, or a stretch," he said.
Sen. Loretta Weinberg (D-Bergen) was not surprised by the question of political payback.
"I have certainly no evidence of that," Weinberg noted. "We should be doing our due diligence on all of the bids."