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Funding for Public Access TV |
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Written by Public Access of Indianapolis
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Tuesday, 16 February 1999 |
Funding PAI seeks to secure a broad base of funding and revenue sources. PAI anticipates the following funding sources, listed in order of importance:
- Cable Franchise Fees
- Grants
- Charitable contributions
- Membership dues
- Fund-raisers
- Fees for use of production facilities by nonresidents and grant-funded projects
Proposed Budget 
This budget, assuming an 8/1/99 start-up and a 10/1/99 opening, is in line with the budgets of other cable TV access organizations in a city the size of Indianapolis. See Appendix E for expense details, and Appendix F for comparisons with other community media access centers. Funding Sources Franchise FeesFranchise fees are compensation for the cable companies' use of state and local rights-of-way. The primary purpose and use of cable TV franchise fees around the country is to fund public, educational, and governmental (PEG) access TV, and the operations of the local franchise authority. Indianapolis currently has a 5% cable TV franchise fee which generated approximately $3.6M in revenue in 1998. Of that, approximately $1.5M reverts to the City General Fund, after allocations for Channel 16, the Cable Communications Agency, the Capitol Improvement Board (CIB), and the Education Television Cooperative (ETC). Public Access of Indianapolis proposes that 12% of the anticipated $3.6M in annual franchise fees be used to support the normal operations of the public access TV channel. This amounts to less than the budget for Channel 16 and the payment to the CIB. 
Grants Public Access of Indianapolis plans to apply for both unrestricted and restricted grants from the Indianapolis Cable Franchise Board, and other organizations. For start-up costs, Public Access of Indianapolis requests a grant of $400,000 from the PEG Capital Fund, and a $200,000 special purpose grant. Charitable Contributions Public Access of Indianapolis is a member of the newly-formed Indiana Social Action Fund, which is pursuing payroll deduction for charitable contributions to its members at several government and corporate organizations. To date, charitable contributions have been the second largest source of revenue for Public Access of Indianapolis Memberships Membership is open to the general public and required for use of the community media access center or the public access TV channel. The current annual membership fee for an individual is $20; a nonprofit organization, $50; and a for-profit organization, $100. Fund-raisers Public Access of Indianapolis has conducted small, annual fund-raisers around video viewings since its incorporation. This format has proved to also be an effective means of increasing awareness of the value of community-based media, and generating memberships and contributions. Publicity is accomplished through mailings from PAI's database and newspaper advertisements. Fees PAI will charge modest rates for use of its production facilities by non-residents of the Indianapolis cable franchise area and for nonprofit, grant-funded productions. All usage of the community media access center is for non-commercial productions that will be shown on the Indianapolis public access TV channel. |
