"PAC 14: We Need YOU!"
One of the most frequently asked questions is how is PEG Access and PAC 14 Funded? PEG Access channels are funded by Franchise Fees, PEG Fees, and cable related funding - period! Anyone offering that this is not true is simply incorrect. Find the facts via links in the information below or call any telecommunication attorney or related PEG expert.
It's not a complicated matter, but it can be, simply because of the terms related to PEG Access funding aren't commonly used. The two most common terms are, 'Franchise Fee' and 'P.E.G. Fee'.Before defining those two funding sources lets step back a few years. When Congress contemplated the impact and implementation of CATV (cable) they determined that several important principles must be considered. First, as cable would primarily deliver distant signals (channels) there must be channel capacity guaranteed to the local community so they were not 'locked out'. Thus, the local community component would be PEG channels.
Second, the PEG channels would be strictly non-commercial and non-profit to ensure the broadest possible use and remove the typical commercial barriers. PEG is often referred to as a public "Green Space". So, if these channels are guaranteed to the community, but are non-commercial, how are they funded?
There are two basic needs of any PEG TV service - operational funding and capital funding. Like any business PEG channels will have operational cost of staff, paper, pencils, lights, heat, etc. There is also a capital need from which you support the bricks and mortar needs, facility, studios, cameras, editors, etc.
Let's start with operational funding and Franchise Fee.
First, PAC 14 receives no 'tax' money. Congress determined that since cable operators would use the Public Rights of Way (PROW) to run their cable lines, the cable operators should pay 'rent' for this privilege. It was therefore established that in compensation for use of the PROW, municipalities (who hold contracts with cable providers) may receive up to 5% of the cable operators gross annual revenue. This includes only cable TV revenues and unfortunately excludes non-video service revenues such as internet and phone services due to a late 1990's revision of the existing cable legislation.
The legislation related to Franchise Fees clearly indicates the intended use of these fees; one of which is to support PEG Access operational needs. Currently, PAC 14 receives 1.5% of the Franchise Fee collected by the City and no fixed percentage of the Franchise Fee collected by the County; the County's appropriation from the General Funds. Therefore, PAC 14's operational funds come from, are intended to come from (since they are collected) this Franchise Fee - rent - for use of the public rights of way.
Sadly, updates to cable legislation permits the cable operators to pass this cost of rent on to the subscriber. While it is unfair that this cost falls on the subscriber, eliminating the fee would equate to no compensation at all from the cable operator. However, if used as intended by Congress, this 'Fee' supports PEG access needs, as opposed to needs already funded by actual tax dollars. Therefore you see itemized on your cable bill the individual services, taxes, and the rent 'Fee'. Nationwide the portion (percentage) of the franchise fee which is allocated to PEG varies greatly. However, it is often directly proportional to the subscriber size and PEG funding needs. Thus, a lesser percentage may be allocated in areas with many hundreds of thousand subscribers, while a higher percentage may be allocated in areas with fewer subscribers. Several Western Shore Maryland Counties receive 2% (of this 5%) or more. An argument can be made that all of this fee should be used exclusively to fund PEG Access, and in some cases, oversight of the cable providers. Typically an official who acts as the liaison between cable and customer to help satisfy service complaints and compliance issues.
Lets turn to capital funding and PEG Fees.
As mentioned earlier, PEG operations have bricks and mortar, studios & major equipment needs. The funds to support this need comes by way of the contracts (agreements) signed between municipalities and cable providers. In some cases there are examples of cable regulatory commissions established to oversee these obligations.It is often determined that cable companies over the life of a contract, often 10 to 15 years, will generate x-amount of revenue. One could roughly estimate by using the average cable bill, say $100, times the number of subscribers, say 28,000, times 12 months, times 15 years. Given the amount of revenue/profit that can be generated by a cable operator (or video provider), local municipalities request/require compensations in return. One of which would be capital funds needed to build/equip Community Media facilities. It can also include additional fiber optic and/or I-Net capacity, which provides enhanced remote-location accessibility, programming and instructional capabilities.
PEG Fee funds are often seen as return on investment to local communities and can and often provide a million dollars or more. Where this amount is provided, and at the moment must be used exclusively for capital needs, it 'may' be passed on to the subscriber as a per 'cent' cost divided over all subscribers over the term of the contract. While cable may pass this cost onto the subscriber, as they are permitted under the current cable legislation, there is no mandate that they do so. Thus, a PEG Fee is the intended source of capital funding for Community Access needs. Since no major capital contributions have been established for PAC 14, Community Access in our area, no PEG Fee currently exists. To date each subscriber pays a dollar and/or cents amount for nearly every channel you receive; except PAC 14. We receive no such funds. However supporters of PAC 14 have offered that they would be willing to support a dollar (or more) to support PAC 14...noting that cost less than a convenience store soda per month.
As example, other Maryland communities have received multiple-million dollars to support P.E.G. and have in turn established Community Media facilities. Carroll County's Media Center provides approximately 9,000 square feet and supports several Access channels - while in comparison PAC 14 has no facility of its own but is provide approximately 900 square feet of office space through the generosity of Salisbury University. Carroll's facility, established in 2004, cost roughly 1.7 million. Carroll currently receives 2% of the 5% Franchise Fee.
Public Access operations can be viewed as the video equivalent of a public library, every resident of the community may utilize the Community Media facilities and equipment; once qualified. No other local media provides this type of open-door access to provide public participation in local media. This type of access understandably requires a significant amount of space, staff, and equipment in order to provide adequate service. While PAC 14 is arguably the most successful and prolific Access channel on the Shore, PAC 14 received less than $100,000 in a one-time Comcast capital contribution ('02) and to date has been unable to secure the additional funding necessary to properly staff or equip the operation, much less build a Community Media Center comparable to Carroll County.
PAC 14's FY 10 budget initially provided $220,800 in franchise/subscriber based funding. This was reduced by roughly $17,000 to approximately $200,000 in February 2010. This reduction drops PAC 14 below FY 07 totals. This amount of funding most cover all costs. However, for informational purposes, this level of funding does not permit funding of employee health or retirement benefits, company vehicles or mileage compensation, nor any of the typical expenses. There are many operational and funding comparisons available on the web to compare what our Access Channel receives related to others across the country. It is important to note that all PEG operations are reliant on the Fee based funding (which relate to Franchise Fees) established by Congress and the capital contributions (which relate to PEG Fees) of local cable operators. PEG is not PBS. PEG can not self-fund solely thru donations or memberships, which in most cases equates to ancillary funding at best. Congress understood this issue and therefore established the manners in which PEG Access would be funded.
PAC 14 suggests that a properly funded operation benefits not only the local government and the community, but the cable operator as well. Over 1,000 PAC 14 members and supporters support the call for appropriate funding and adequate facility. While PAC 14 has managed to survive, under admittedly difficult circumstances, our supporters are indicating the time has come to move beyond basic survival funding. Supporters argue that any scenario that does not provide adequate operational and capital funding, and establish PAC 14 as a publicly held non-profit entity, would not serve the best interest of Community Access or the community itself. Routinely, mutual agreements between local municipalities and the Access entity guarantee mutual security in that PEG is guaranteed secure and adequate funding, and in turn Access guarantees its continued support of PEG services; including local governments. This provides both mutual security and oversight. Often these agreements are short term, perhaps three years, and are re-evaluated at the end of each term. It's important to note, the cable agreements are much longer than those of PEG operations. Access supporters would also like to see the cable operator provide significant capital support for our PEG channels, which is not passed-through to the subscriber; therefore all parties provide a fair share.
There is only one 'PAC 14', community channel, that provides open opportunity to inform, educate, discuss, debate, and yes even entertain in a manner that represents true American values...of the people, by the people, and for the people. There are other tools like the internet, but television is the American standard. PEG does not support a world wide audience, it supports 'home town'. PAC 14 is 'our' destination on the dial. If you'd like to sign our petition and read a few of our supporters comments, please do. To read petition comments just click on 'view signatures'. Other comments from PAC 14 friends and supporters are available here.
It's not a complicated matter, but it can be, simply because of the terms related to PEG Access funding aren't commonly used. The two most common terms are, 'Franchise Fee' and 'P.E.G. Fee'.Before defining those two funding sources lets step back a few years. When Congress contemplated the impact and implementation of CATV (cable) they determined that several important principles must be considered. First, as cable would primarily deliver distant signals (channels) there must be channel capacity guaranteed to the local community so they were not 'locked out'. Thus, the local community component would be PEG channels.
Second, the PEG channels would be strictly non-commercial and non-profit to ensure the broadest possible use and remove the typical commercial barriers. PEG is often referred to as a public "Green Space". So, if these channels are guaranteed to the community, but are non-commercial, how are they funded?
There are two basic needs of any PEG TV service - operational funding and capital funding. Like any business PEG channels will have operational cost of staff, paper, pencils, lights, heat, etc. There is also a capital need from which you support the bricks and mortar needs, facility, studios, cameras, editors, etc.
Let's start with operational funding and Franchise Fee.
First, PAC 14 receives no 'tax' money. Congress determined that since cable operators would use the Public Rights of Way (PROW) to run their cable lines, the cable operators should pay 'rent' for this privilege. It was therefore established that in compensation for use of the PROW, municipalities (who hold contracts with cable providers) may receive up to 5% of the cable operators gross annual revenue. This includes only cable TV revenues and unfortunately excludes non-video service revenues such as internet and phone services due to a late 1990's revision of the existing cable legislation.
The legislation related to Franchise Fees clearly indicates the intended use of these fees; one of which is to support PEG Access operational needs. Currently, PAC 14 receives 1.5% of the Franchise Fee collected by the City and no fixed percentage of the Franchise Fee collected by the County; the County's appropriation from the General Funds. Therefore, PAC 14's operational funds come from, are intended to come from (since they are collected) this Franchise Fee - rent - for use of the public rights of way.
Sadly, updates to cable legislation permits the cable operators to pass this cost of rent on to the subscriber. While it is unfair that this cost falls on the subscriber, eliminating the fee would equate to no compensation at all from the cable operator. However, if used as intended by Congress, this 'Fee' supports PEG access needs, as opposed to needs already funded by actual tax dollars. Therefore you see itemized on your cable bill the individual services, taxes, and the rent 'Fee'. Nationwide the portion (percentage) of the franchise fee which is allocated to PEG varies greatly. However, it is often directly proportional to the subscriber size and PEG funding needs. Thus, a lesser percentage may be allocated in areas with many hundreds of thousand subscribers, while a higher percentage may be allocated in areas with fewer subscribers. Several Western Shore Maryland Counties receive 2% (of this 5%) or more. An argument can be made that all of this fee should be used exclusively to fund PEG Access, and in some cases, oversight of the cable providers. Typically an official who acts as the liaison between cable and customer to help satisfy service complaints and compliance issues.
Lets turn to capital funding and PEG Fees.
As mentioned earlier, PEG operations have bricks and mortar, studios & major equipment needs. The funds to support this need comes by way of the contracts (agreements) signed between municipalities and cable providers. In some cases there are examples of cable regulatory commissions established to oversee these obligations.It is often determined that cable companies over the life of a contract, often 10 to 15 years, will generate x-amount of revenue. One could roughly estimate by using the average cable bill, say $100, times the number of subscribers, say 28,000, times 12 months, times 15 years. Given the amount of revenue/profit that can be generated by a cable operator (or video provider), local municipalities request/require compensations in return. One of which would be capital funds needed to build/equip Community Media facilities. It can also include additional fiber optic and/or I-Net capacity, which provides enhanced remote-location accessibility, programming and instructional capabilities.
PEG Fee funds are often seen as return on investment to local communities and can and often provide a million dollars or more. Where this amount is provided, and at the moment must be used exclusively for capital needs, it 'may' be passed on to the subscriber as a per 'cent' cost divided over all subscribers over the term of the contract. While cable may pass this cost onto the subscriber, as they are permitted under the current cable legislation, there is no mandate that they do so. Thus, a PEG Fee is the intended source of capital funding for Community Access needs. Since no major capital contributions have been established for PAC 14, Community Access in our area, no PEG Fee currently exists. To date each subscriber pays a dollar and/or cents amount for nearly every channel you receive; except PAC 14. We receive no such funds. However supporters of PAC 14 have offered that they would be willing to support a dollar (or more) to support PAC 14...noting that cost less than a convenience store soda per month.
As example, other Maryland communities have received multiple-million dollars to support P.E.G. and have in turn established Community Media facilities. Carroll County's Media Center provides approximately 9,000 square feet and supports several Access channels - while in comparison PAC 14 has no facility of its own but is provide approximately 900 square feet of office space through the generosity of Salisbury University. Carroll's facility, established in 2004, cost roughly 1.7 million. Carroll currently receives 2% of the 5% Franchise Fee.
Public Access operations can be viewed as the video equivalent of a public library, every resident of the community may utilize the Community Media facilities and equipment; once qualified. No other local media provides this type of open-door access to provide public participation in local media. This type of access understandably requires a significant amount of space, staff, and equipment in order to provide adequate service. While PAC 14 is arguably the most successful and prolific Access channel on the Shore, PAC 14 received less than $100,000 in a one-time Comcast capital contribution ('02) and to date has been unable to secure the additional funding necessary to properly staff or equip the operation, much less build a Community Media Center comparable to Carroll County.
PAC 14's FY 10 budget initially provided $220,800 in franchise/subscriber based funding. This was reduced by roughly $17,000 to approximately $200,000 in February 2010. This reduction drops PAC 14 below FY 07 totals. This amount of funding most cover all costs. However, for informational purposes, this level of funding does not permit funding of employee health or retirement benefits, company vehicles or mileage compensation, nor any of the typical expenses. There are many operational and funding comparisons available on the web to compare what our Access Channel receives related to others across the country. It is important to note that all PEG operations are reliant on the Fee based funding (which relate to Franchise Fees) established by Congress and the capital contributions (which relate to PEG Fees) of local cable operators. PEG is not PBS. PEG can not self-fund solely thru donations or memberships, which in most cases equates to ancillary funding at best. Congress understood this issue and therefore established the manners in which PEG Access would be funded.
PAC 14 suggests that a properly funded operation benefits not only the local government and the community, but the cable operator as well. Over 1,000 PAC 14 members and supporters support the call for appropriate funding and adequate facility. While PAC 14 has managed to survive, under admittedly difficult circumstances, our supporters are indicating the time has come to move beyond basic survival funding. Supporters argue that any scenario that does not provide adequate operational and capital funding, and establish PAC 14 as a publicly held non-profit entity, would not serve the best interest of Community Access or the community itself. Routinely, mutual agreements between local municipalities and the Access entity guarantee mutual security in that PEG is guaranteed secure and adequate funding, and in turn Access guarantees its continued support of PEG services; including local governments. This provides both mutual security and oversight. Often these agreements are short term, perhaps three years, and are re-evaluated at the end of each term. It's important to note, the cable agreements are much longer than those of PEG operations. Access supporters would also like to see the cable operator provide significant capital support for our PEG channels, which is not passed-through to the subscriber; therefore all parties provide a fair share.
There is only one 'PAC 14', community channel, that provides open opportunity to inform, educate, discuss, debate, and yes even entertain in a manner that represents true American values...of the people, by the people, and for the people. There are other tools like the internet, but television is the American standard. PEG does not support a world wide audience, it supports 'home town'. PAC 14 is 'our' destination on the dial. If you'd like to sign our petition and read a few of our supporters comments, please do. To read petition comments just click on 'view signatures'. Other comments from PAC 14 friends and supporters are available here.