Daley unveils plan for funding CAN TV

Daily Southtown
Published September 30, 2004
James G. Muhammad, Correspendent

A new proposal to fund Chicago Access Network Television taps the cable franchise fees collected by the city.

The plan unveiled Wednesday by Mayor Richard Daley and Ald. Bernard Stone (50th) also reduces a tax deduction cable firms now get.

"We've come up with something that doesn't touch corporate funds and will solve the situation. We've found the absolute perfect solution," Stone said, drawing applause from CAN TV supporters in the city council chambers.

The proposal must be reviewed by the finance committee before the city council can consider it.

CAN TV, which operates five public-access cable stations, could receive about $665,000 a year under the proposal.

"We're very pleased to see that Mayor Daley and Ald. Stone have come up with a resolution to this problem and that we can go forward into the future with confidence once the ordinance is passed next month, hopefully," said Barbara Popovic, executive director of CAN TV.

CAN TV's budget problems were caused by several defaults by the cable company RCN in its fee payments and its ultimate bankruptcy filing. Fees paid by cable franchise holders help support CAN TV.

Popovic said RCN still has a debt pending to CAN TV that will not be taken care of in the solution by city council.

The funding proposal would tap 5 percent of the franchise fee that cable companies pay to the city. And the cable companies — which had been able to deduct 100 percent of franchise fees from an amusement tax also paid to the city — will now be allowed a 95 percent deduction.

Stone said he's pleased CAN TV will be able to continue to operate, but ultimately the consumer will bear the brunt of the arrangement.

Cable companies will pass on the cost of the 5 percent they will not be able to discount from the amusement tax, he said.

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