Plan Would Give CAN TV New Funding Formula

Chicago Tribune

Published September 29, 2004

By Leon Lazaroff, Tribune national correspondent

Mayor Richard Daley and Ald. Bernard Stone (50th) are expected to propose a new funding formula for Chicago Access Network Television at a City Council meeting Wednesday.

But officials of CAN TV, which operates five non-profit public-affairs cable-TV stations, say they are concerned that the proposed funding mechanism would not guarantee the long-term financial health of the Greektown-based network.

"If CAN TV is made whole by this, that's great," said Barbara Popovic, CAN TV's director.

"But if the city puts in place a funding structure that doesn't name CAN TV, then that money could go to funding something else sometime in the future," she added.

Popovic said she would urge the council to approve a companion ordinance making clear that the newly generated money would be earmarked specifically to CAN TV.

CAN TV has been under financial pressure for more than two years, largely because RCN Corp., which provides cable service to about 30 percent of the lakefront area, had been unable to fulfill its funding obligations to the local-access stations.

RCN, which filed for bankruptcy protection in May, owes CAN TV more than $1.2 million in missed payments.

Under a formula proposed by Daley and Stone, money the city has traditionally returned to the city's cable-TV providers as part of a tax rebate would be channeled to CAN TV.

Stone said the amount likely to be generated by withholding a portion of the rebate would be about $900,000, sufficient to bridge CAN TV's current budget shortfall.

The bulk of CAN TV's financing--about $1.6 million in 2003--comes directly from the cable-TV companies.

Each cable company is required to pay CAN TV a fee for each area of the city where it operates. Chicago divides itself into five cable-TV areas.

RCN, which is negotiating with the city to compete in one rather than four cable areas, would not comment on the Daley-Stone proposal.

Comcast and WideOpenWest have fulfilled their obligations to CAN TV.

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