Cable commission approves 50% Q4 distributions for general fund and PEG amid revenue decline

The Sacramento Metropolitan Cable Television Commission voted to distribute 50% of the planned quarter-four payments to channel licensees for both the general fund and the PEG fund, the body announced after a lengthy budget presentation and public comment on March 3.

Executive Director Sean Ayala presented a detailed budget review showing steady declines in cable-fee revenue and multiple liabilities the commission must address. Ayala said the PEG account currently faces a structural shortfall, estimating “total PEG projects this year were about 3,900,000.0. And in the coming year, I expect to have about 2,200,000.0 in that account,” and warned that without prioritization reserves could be drawn down.

The cut was proposed by Director Hedges and—after discussion and a substitute motion—amended on the floor so the commission would fund the fourth quarter at 50% for both funding streams. Vice Chair Middleton and other commissioners framed the decision as a necessary, though painful, step to preserve operating cash for Metro Cable 14 and to shore up reserves against future pension and OPEB obligations.

Channel licensees and community members urged the commission to keep funding intact. Sue Buskey of Access Sacramento told commissioners the organization is undergoing a transition and asked for full support: “Cutting at this time will not create efficiency. It will collapse the organization,” she said. Public commenters and licensee representatives described workforce-training programs, multilingual public-health programming and community storytelling that they said depend on continued PEG and general-fund support.

Ayala and other commissioners said the commission can defer some decisions to the June preliminary budget once more franchise-fee numbers are in, and Ayala said he plans to encumber funds for JPA member projects to give local audio-visual teams certainty for ongoing work. Commissioners debated whether delaying cuts would only steepen future reductions; the majority voted for the 50% Q4 distribution as a compromise intended to provide runway while preserving reserves.

The motion combined the general-fund and PEG votes so both measures passed together by majority vote. The commission also agreed to consider a $601,000 reserve decision and certain pension/OPEB payments at a later meeting.

What happens next: Ayala will return at the preliminary June meeting with updated revenue numbers and scenario options; channel licensees and JPA members were told to prioritize projects because available PEG funding will likely be pro-rated if requests exceed the account balance.