PEG Access was established by the Federal Communications Commission in 1972 and, since then, hundreds of communities have established PEG facilities and activated PEG channels. In addition to capital grants negotiated as part of cable franchise agreements, many cities dedicated of a portion of the local 5% franchise fee paid to them by cable operators to support PEG operations (this fee totals approximately $3.2 million in annual payments to the cities of Fresno and Clovis and the County of Fresno).
In the absence of PEG Access locally, however, franchise fees have historically flowed entirely into each city’s General Fund. As a result, given the budget challenges facing local governments in our area today, franchise fees are not a proposed source of PEG operational funding support.
Funds for Community Media equipment, facility and maintenance will be derived from approximately $600,000 per year in state-enabled, locally-authorized PEG Support Fees paid by Comcast, AT&T and future video providers (1% of gross revenues) under Cable Franchise Agreements with the City of Fresno and City of Clovis. However, use of these specific funds is restricted to capital expenditures. As a result, CMAC is identifying additional revenue sources to support Community Media facility staffing and day to day operations.