Substitute Ordinance passes despite public objections

On March 18, 2009, the Chicago City Council voted 38-11 to pass a Substitute Ordinance that fails to resolve either immediate or future funding issues facing CAN TV.

CAN TV is facing the immediate problem of a significant drop in funding that will result in service cuts due to an outdated funding structure that has caused problems for years.

In September, 2007, the City created an additional problem when it amended the cable ordinance to route the 1% public, education, and governmental (PEG) fee from state franchise holders to the City, reversing a 25-year history of direct funding of CAN TV.

On October 31, 2008, to resolve these issues, an Ordinance sponsored by Alderman Stone and Alderman Burke and signed by 36 Aldermen was presented at the Committee on Finance meeting. But despite strong Aldermanic support, the Ordinance was held without a vote.

For over 9 months, CAN TV representatives have met with City officials to address the City's concerns about that Ordinance.

A compromise Ordinance was drafted in early March and we encouraged you to urge your Alderman's vote in support of the Ordinance at the March 16 meeting. That Ordinance resolved the state PEG fee issue, but additional steps would still be required to address the immediate funding problem.

However, on March 12, 2009, the City replaced the Ordinance with a Substitute that failed to solve either the immediate or future funding problems facing CAN TV. Proponents of the ordinance state that it sets a precedent by directing the 1% PEG fee from one company, AT&T, to CAN TV. While that is an improvement, to date AT&T serves only a handful of residents and its contribution to CAN TV's financial health is unknown at present.

Further, the ordinance inexplicably directs the 1% PEG fee from future state holders to the City's Commissioner of Business Affairs and Consumer Protection. This includes cable companies that might choose to operate under state law.

The Substitute passed out of the Committee on Finance despite requests from opponents that it be held for further consideration. The Substitute Ordinance:

• Provides no adequate funding solution for CAN TV.
• Directs the 1% PEG fee from all state holders except for AT&T to the City's Commissioner of Business Affairs and Consumer Protection.

At the hearing on the Substitute, Chicagoans from health care and disability rights groups, ethnic communities, media activists, and senior producers testified in support of finding a more meaningful, sustained funding solution for CAN TV today.

"This is a community necessity...it is not some sort of an optional thing that can be tweaked or minimized as the budgets go up and down," said Dave Kraft, Director of Nuclear Energy Information Service, "It has had both national and international impact, making the City of Chicago look good. That ought to mean something to this body."

Watch complete hearing coverage online now