Clinton Proposes Analog Broadcaster Fees

The budget President Clinton submitted to Congress Monday, February 7, 2000 proposes a $200 million annual ""lease fee"" for analog frequencies that broadcasters have been using free for the past 50 years.The proposed budget for the fiscal year beginning October 1 also calls for the National Endowment for the Arts (NEA) to get a big boost - from $97.6 million to $150 million next year. The Corporation for Public Broadcasting (CPB) would also get a hike.In the presidentís budget, there is no proposed charge for the use of the digital airwaves that broadcasters were handed two years ago. The broadcasting industry is still not quite sure how it will use the digital airwaves, and consumers have been reluctant to invest in the expensive television sets necessary to view the new service.National Association of Broadcasters President Eddie Fritts condemned Clintonís proposal to charge broadcasters for use of the airwaves as a plan that would ""jeopardize a public-private partnership between government and free-over-the-air broadcasters that dates back to the 1934 Communications Act.""The Clinton administration made a similar proposal last year but failed to win support for it. Artful ManeuverAs for Clintonís proposed boost to the NEA, itís far too early to predict how Congress will handle the typically controversial budget request for the arts agency. But the White House has hit on a unique strategy to get the proposal through the federal legislative bodies: Most of the $52 million hike is earmarked for a program called ""Challenge America"" that targets local communities for arts support.One of Congressí key complaints about the NEA has been that it directs a disproportionate amount of money toward New York and Los Angeles.""Through our Challenge America program, the NEA takes a national leadership role in creating new ways ofÖ ensuring the arts play a central role in the lives of all Americans,"" said Bill Ivey, Chairman of the NEA.Also slated for a nice raise is the Corporation for Public Broadcasting, which distributes the federal subsidy for National Public Radio and the Public Broadcasting Service.CPB, which has a two-year budget cycle, would see a significant hike in 2003 under Clintonís proposal. The CPBís budget is set to increase from this yearís $300 million to $365 in 2003. In addition, Clintonís budget sets aside $393 million to help public broadcasters make the transition to digital broadcasting.