NBC News Way Over Budget: Persian Gulf...

NBC News Way Over Budget: Persian Gulf crises coverage has pushed NBC News $15 million to $20 million over budget this year, NBC News President Michael Gartner told a gathering of TV news directors in San Jose. The network’s news division, which employs about 1,000 people, has a 1990 budget of about $250 million, and after several years of losses, executives had expected the operation to finally break-even for the year. But a special “contingency fund” included in the budget is already exhausted. Coverage in the Persian Gulf is costing NBC about $1 million a week, Gartner said, and as a result the network will cut its staff in the region to 50 from 80. Gartner said breaking the budget will not effect NBC News’ plans to hire an additional 100 people to staff two new prime-time magazine shows.