Trump Administration FY 2019 Budget Repeats Bid to Eliminate CPB Funding

The FCC's proposed budget is about $322 million in FY 2019, down more than $21 million from the $343 million allocated in FY 2018 continuing appropriations but the same as the Trump administration’s proposed budget for the agency for that year. The FCC Office of Inspector General’s budget would remain largely steady at $11 million. The FTC's proposed budget is almost $310 million, up from $306 million proposed in FY 2018 and slightly down from the almost $311 million budget it operated on for the year under continuing appropriations. NTIA's proposed budget is more than $33 million in FY 2019, down from the $36 million requested in FY 2018 but largely on par with its appropriations for the year under continuing appropriations.

The FCC and its OIG would maintain their collective staffing levels at 1,448 full-time equivalents (FTEs) for regulatory fee offsetting collections and the spectrum auctions program. The FCC noted it “does not yet know the amount of rent it will pay” at its current headquarters in the Portals building for FYs 2018 and 2019, so its estimated rent for FY 2019 “shows only the inflationary increase of approximately 2 percent from the amount submitted for FY 2018.” The FCC budget would reduce the number of Consumer and Governmental Affairs Bureau FTEs by eight to 118 and the number of Office of General Counsel FTEs by four to 68. The budget would increase Wireline Bureau FTEs by five to 160 and the Office of Managing Director FTEs by six to 184. Other bureaus and offices would see increase or decreases in their staffing levels of fewer than two FTEs. The FCC released its 2018-2022 strategic plan along with the budget.

Federal funding for CPB is “a small share of the total funding" for PBS and NPR, "which primarily rely on private donations to fund their Operations,” the administration said. “This private fundraising has proven durable, negating the need for continued Federal subsidies. Services such as PBS and NPR, which receive funding from CPB, could make up the shortfall by increasing revenues from corporate sponsors, foundations, and members.” The White House proposed allocating $15.5 million for CPB in FY 2019 and $15 million in FY 2020 to help “conduct an orderly transition away from Federal funding.”

There's “great value” in “having universal access to public media’s educational and informational programming and services, provided commercial free,” said CPB CEO Patricia Harrison. “Since there is no viable substitute for federal funding that would ensure this valued service continues, the elimination of federal funding to CPB would at first devastate, and then ultimately destroy public media’s ability to provide early childhood content, life-saving emergency alerts, and public affairs programs.”

America's Public Television Stations is “disappointed” the Trump administration “once again recommends the elimination of federal funding for public media,” said President Patrick Butler" “We will continue to make our case” with the White House, but “fortunately, Republicans and Democrats” in Congress “understand these contributions … very well.” APTS is “hopeful that Congress will continue its support for public broadcasting” in its final FY 2019 appropriations bill, Butler said. The House and Senate Appropriations committees had advanced budgets for FY 2018 that left CPB funding intact (see 1707200065).

The administration’s FCC-related budget legislative proposals “are designed to improve spectrum management and represent sound economic policy,” the agency said. The White House proposes giving the FCC “new authority” to use fees and other economic mechanisms “as a spectrum management tool.” The agency “would be authorized to set user fees on unauctioned spectrum licenses based on spectrum-management principles,” the White House said. “Fees would be phased in over time as part of an ongoing rulemaking process to determine the appropriate application and level of fees that maximize spectrum utilization.”

The administration proposed extending FCC spectrum auction authority through 2028 and to use funds from the Spectrum Relocation Fund “for research and development and planning activities by Federal entities that are expected to increase the probability of relocation from or sharing of Federal spectrum.” Auction proceeds could hit $6 billion through 2028, the White House said. The Trump administration also proposed the FCC auction or otherwise assign spectrum in the 1675-1680 MHz band for flexible use by 2020 depending on sharing arrangements with National Oceanic and Atmospheric Administration weather satellites. NOAA began transitioning off the 1675-1680 MHz band in 2016 after the AWS-3 auction. “If this proposal is enacted, NOAA would establish limited protection zones for the remaining weather satellite downlinks and develop alternative data broadcast systems for users of its data products,” the FCC said. “Without this proposal, these frequencies are unlikely to be auctioned and repurposed to commercial use. The proposal is expected to raise $600 million in receipts over 10 years.”

The House Communications Subcommittee meanwhile canceled a planned Friday hearing with FCC Chairman Ajit Pai and the other commissioners that would have focused partially on the budget proposal, the Jan. 13 false ballistic missile alert in Hawaii and other public safety communications issues. House Communications moved to cancel the hearing after House leaders canceled votes planned for Friday, a spokeswoman said. The subcommittee plans to reschedule.