Budget Week in Washington

Coverage Type: 

[SOURCE: Various]
The focus for President Bush this week is the Fiscal Year 2007 budget. His proposal for expenditures (Republican budgets never include income) was released Tuesday and here are some high(low)lights:

1) According to the budget proposal, the sale of wireless communications licenses is projected to raise about $25 billion between 2007 and 2009, $7.8 billion higher than last year's estimate. The Bush budget estimated that $9.95 billion from wireless auctions would be received in the 2007 fiscal year, which starts October 1, 2006. It also expects almost $12.24 billion in the 2008 fiscal year that starts October 1, 2007. Additionally the budget projects $2.87 billion being received in the 2009 fiscal year. Bush's budget last year had estimated wireless auctions would bring in $17.2 billion between fiscal years 2007 and 2009. The auction proceeds would come as the Bush administration tries to substantially reduce the federal deficit by 2009.

2) While the Bush Administration's new FY2007 budget cuts $53 million, or about 13%, from CPB's budget, it boosts the budget for international broadcasting, which BBG oversees, by 4.3%, to $671.9 million to help boost broadcasts to the Middle East. That follows a 7.1% budget increase for fy2005. The Administration is trying to cut budgets across the board, but by contrast to CPB, BBG's Middle East Broadcasting service and Voice of America are considered weapons in the war on terrorism. In fact, while non terror-related language services under BBG will get the knife, or even the outright axe, the Middle East services are getting a 13% increase and VOA a 5.3% increase, which more than offsets the cuts elsewhere.

3) The Bush administration has proposed starting to collect user fees on unauctioned spectrum, including broadcasters', beginning in 2007. The fees would raise $3.6 billion over its first 10 years, according to the Administration. Variations of the user fee idea have been proposed repeatedly by the Clinton and Bush White Houses but have failed thanks to broadcasters’ lobbying. Nevertheless, demands for spectrum from the wireless industry and from public safety officials make defeating the fees an increasingly tough fight.

4) The administration also proposed eliminating the Telecommunications Development Fund, which uses interest on spectrum proceeds of venture capital.

5) The Administration reiterated its support for the DTV bill establishing a hard date for the DTV transition and return of spectrum for auctions and first responders.

6) The Federal Communications Commission would receive $302.5 million to regulate the telecommunications sector. Congress and the White House approve the FCC’s budget, but the agency is almost entirely funded -- 99.7%, according to FCC spokesman David Fiske -- by fees collected from the industries it regulates, a revenue method Congress authorized in 1993 that currently includes 2,200 companies with business before the agency.

* Bush administration sees $25 billion in wireless sales
http://today.reuters.com/news/newsArticle.aspx?type=technologyNews&story...

* President Bush Announces Budget Cuts for CPB
http://www.tvweek.com/news.cms?newsId=9343
(requires free registration)

* Bush Boosts Middle East Broadcast Funding
http://www.broadcastingcable.com/article/CA6305305?display=Breaking+News...
(free access for Benton's Headlines subscribers)

* Spectrum User Fees Proposed
http://www.broadcastingcable.com/article/CA6305159.html?display=Breaking...
(free access for Benton's Headlines subscribers)

* Bush Budget: $302.5M for FCC
http://www.multichannel.com/article/CA6305384.html?display=Breaking+News
(requires subscription)

* FCC Budget of $302,542,000 Proposed for Fiscal Year 2007
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-263675A1.doc

* Bush: lets tax WiFi
http://gigaom.com/2006/02/06/bush-lets-tax-wifi/