Channel Fee Sought

["Jerry Decker" <radiobuzz@mailcity.com>]

One of my clients forwarded the following
news item to me :

In what could be average annual tax of $160,000 
per station, President Clinton in FY 2001 budget
released last week proposes $200 million "lease
 fee" for all commercial analog TV stations. 
Proposal said fee would be applied each year
until licensee returned analog spectrum, with
first payment due Sept.30, 2001. NAB protested
plan that also was raised last year but found little support on Capitol
Hill. 

To make lease fee reality, Congress would have 
to enact authorizing legislation.Then FCC would
have to issue rulemaking to, as budget 
said, "apportion the aggregate fee amount among
broadcasters." If divided evenly among nation's
551 VHF and 682 UHF commercial stations, cost per station would be $160,901 in FY 2001.Along
with providing incentive to speed up DTV transition process, lease fee
would boost federal govt.public safety wireless
communications with collected funds.Proposal said that of "not less than $200 million" 
collected in fiscal year, FCC would get $2
million for administrative costs, Justice
Dept.$138 million for public safety wireless
upgrades, Treasury $55 million for similar
initiatives, Dept.of Interior $5 million for
similar goal among Native American population. 

NAB Pres.Edward Fritts said lease fee
proposal "would jeopardize a public-private
partnership between government and free, over-the-air broadcasters" involving spectrum in
exchange for public service. He said NAB 2 years
ago documented billions in public service programming and fund-raising by TV stations: "To suggest that $6.8 billion in
public service is somehow inadequate for use of
a sliver of the spectrum is nothing short of
sheer folly." Attorneys for House and Senate
Commerce Committees weren't available for
comment. 

Net result for FCC after surrendering auction
and other revenues would have agency receiving
$37.042 million in FY 2001, up from $24.246
million year before, along with $200.146
million in "offsetting collections." Budget
summary said Commission is implementing "more
efficient licensing," allowing "a more rapid
introduction of new services and technologies."
Administration promised that by 2001 "FCC
will achieve 85% of licensing and enforcement
activities within established deadlines." 

CPB would beat inflation with 4.3% increase to
$365 million from $350 million, under proposed
budget, but real fight for public broadcasters
will be for digital conversion funds. Administration called for same $20 million in
extra money for CPB it asked for last year, when appropriators gave only $10 million and
reauthorization's failure cost Corp.$15 million
that had been appropriated conditionally year
earlier.To make up for shortfall, budget asks
for $35 million in FY 2002 and $30 million in
FY 2003, compared with annual $20 million projected previous year. 


-Jerry Decker
------
Decker Media Consulting
Brooklyn,NY




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