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Who pays for public access television? Print E-mail
Written by Public Access of Indianapolis   
Thursday, 01 January 1998

PEG access is usually funded by the cable operators, franchise fees, and/or municipal grants.  Franchise fees, an up to 5% tax paid by cable subscribers,  usually fund PEG access operations and the franchising authority's enforcement and regulation of the cable franchise agreements, as well as long range planning, research  and development.  Indianapolis uses only $840k of its franchise fees, projected at $3.2m for 1998, to fund government and educational access television, and the  Cable Franchise Board's operations.  Over $1.2m in franchise fees per year, $.50 from each of the over 200,000 cable subscribers per month, goes to the Capital  Improvement Board (CIB), earmarked for its professional sports television programming efforts.  Unused funds, projected at $1.2m for 1998, remain,  unrestricted, in the City's General Fund.  As Indianapolis has done, a municipality can also require special capital grants from the cable operators for PEG equipment  above and beyond the maximum 5% franchise fee.

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