CAN TV Funding Reform Passes Finance Committee
Proposal to Bolster Public Access Station with Tax Money
Would Face City Council Vote this Fall

Chicago Journal
Published June 24, 2004
By Lydialyle Gibson, Staff Writer

Confessing no little apprehension over the idea of funding public access television out of city coffers, members of the City Council's Finance Committee nevertheless voted last Friday afternoon to approve an ordinance that would contribute roughly $2.5 million in tax dollars annually to CAN TV, the citywide public access station based in the West Loop. Authored by 50th Ward Alderman Bernard Stone, the measure is meant to put an end to a flawed funding scheme that's given CAN TV administrators a two-year financial headache. Hundred of clamorous well-wishers filled the floor and spilled into the balcony inside the Council Chambers to voice their support.

If passed by City Council, Stone's proposal would provide the public access station with one-fifth of the $12 million plus city officials receive every year in cable franchise taxes. And as amended last Friday, the ordinance wouldn't take effect until Jan. 1, 2005. First though, it must get past a tough audience in the Council's Budget Committee.

Last Friday, some Finance Committee members offered a taste of trepidation to come. (That trepidation is shared by Mayor Daley.) More than one alderman praised Stone's efforts while at the same time suggesting city officials also look elsewhere for CAN TV funding.

Perhaps, they said, supporting the station with tax dollars would turn out to be only a temporary solution. Perhaps they'd unearth other monies somewhere else.

"I like your posture that the city is committed to CAN, but that you're looking for other options," 25th Ward Alderman Daniel Solis told Norma Reyes, the Department of Consumer Services' new commissioner.

"I'm concerned--from the Budget Office, how does this affect our 2005 budget?" asked 29th Ward Alderman Carothers, calling for more information. "If the situation is that we even agree to this, that now we find out we're in fiscal straits and now we have to come in and say we can't even afford to pay it ? … Anything we don't do today, we can do tomorrow."

Twenty-eighth Ward Alderman Ed Smith put it more simply. " In the last couple budgets, we've had some trouble closing the gap," he said.

Reyes insisted Stone's proposal may be just one answer among many. "This ordinance may not be a permanent solution," she said.

Like many in the room last Friday, Smith urged the city to force a few arrears checks from RCN cable company before laying CAN TV's financial woes at the feet of taxpayers. After all, the trouble all began with RCN's delinquency, they said, wondering aloud whether a new funding scheme might let the cable firm off the hook. Back in 2002, the company missed a $645,000 payment to CAN TV. After eight months of teeth-pulling negotiations, cable executives made good, but this January they missed another deadline, this time for a $215,000 check. (In addition, the bankrupt company begged off its obligation to pay another $435,000 in franchise fees.) CAN TV officials have yet to see that money, despite a $1 million per day fine imposed by the city back in February. Altogether, CAN TV is facing a nearly $950,000 budget shortfall if RCN pulls up its Chicago stakes. That's one-third of the station's budget.

"RCN has been causing problems across the country," Smith said. "These guys have got to pay."

"RCN continues to think they can throw a little cookie at us and forget about the whole course," said 31st Ward Alderman Ray Suarez. "We're wasting time here. If it was a little person with a traffic ticket and he refused to pay it, he'd probably be in jail right now."

Twenty-seventh Ward Alderman Walter Burnett, too, suggested squeezing RCN. "Our body is starting to be disrespected by these big corporations," he said.

Stone sought to quell his colleagues' worries by amending the ordinance to take effect next year, rather than immediately.

"That gives you six months to look for alternative funding." He said. "What could be fairer? What could be fairer?"

Besides, he said, CAN TV's crisis is hardly a recent one.

"This situation started four years ago," he said. "[City officials] had an opportunity to look for alternative finding . . . And they've been sitting on their hands."

CAN TV Executive Director Barbara Popovic told councilmen they'd find few other options.

"I would hope-and I am hearing this today-that the City Council is not waiting for the roof to cave in before acting," Popovic said. CAN TV has roughly $3.1 million, a little more than a year's worth of operating money, in reserve. "We're coming to you early on. Alderman Stone has anticipated a crisis down the road and he's saying, 'Let's right this before it's too late.' We've looked around-there's not too many options out there. . . . We need to know how to plan for the future."

Along with Popovic, Stone told fellow councilmen that even if RCN pays up this time, cable access' funding problems will persist. When city officials set up the current arrangement they counted on citywide competition among cable companies to buoy CAN TV's budget. That competition has not materialized. Instead, cable companies find themselves competing with satellite television.

"I'm not at all sure that cable is the future," said Natarus, who co-sponsored Stone's proposal.

"I can understand why the administration is concerned," he said. "The city of Chicago has to balance its budget or it can't operate. So we have to evaluate the merit of the cause, and the merit of the cause is there."

According to Popovic, the very fate of CAN TV is at stake. Last year, the station authorized $200,000 in deficit spending and cut seven full-time and three part-time jobs.

Without substantial city help, she said, CAN TV is in jeopardy of becoming "a shadow of ourselves," she said. "Without a reliable, permanent source of funding, the mission will fail," Popovic said, "I don't think we could make up $1 million a year, or anything like the kind of money we're about to lose."

If passed by the budget committee, Stone's proposed ordinance would face the entire City Council this fall.

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