Representatives of Hawaii’s public access television channels told state lawmakers last week that they oppose a proposal to fund a school laptop program by capping the channels’ funding at 2011 levels and depositing the difference into a special fund.

The House Finance Committee passed the bill last week because it would fund a $1 million pilot program that would eventually lead to putting a laptop in the hands of all Hawaii students, said Rep. Marcus Oshiro (D, Wahiawa-Poamoho), chairman of the House Finance Committee.

Gov. Neil Abercrombie announced the plan during his State of the State address earlier this year and asked lawmakers to find a way to foot the bill.

House Bill 2874, heard Feb. 27, proposes freezing the revenue that Public, Educational and Governmental, or PEG, Access channels receive from cable company fees at 2011 levels until 2017.

Each year’s difference would be deposited into a newly created broadband special fund administered by the state Department of Business, Economic Development and Tourism. Laptops (or "portable computing equipment" as the bill was amended to read) and other broadband-related advances in schools would then be supported by that fund.

"There might be other sources. We’ll be open to that, but until today no one has brought that (up)," Oshiro said.

The state’s four public access channels, PBS Hawaii and the state Department of Commerce and Consumer Affairs received a total of roughly $12.5 million in 2011 from cable fees collected in 2010. In 2010 and 2009, the fees doled out amounted to about $11.8 million and $11.5 million, respectively.

The exact amount that would be diverted to the broadband special fund in coming years should the income for these companies be capped is difficult to calculate, said Donn Yabusaki, cable television administrator for the commerce department.

But Yabusaki said he thinks the difference each year will not amount to a large sum because it seems to increase only slightly from year to year.

"They (the revenues) tend to kind of stay real close and there’s no surprises," he said. "The cable saturation (number of households in Hawaii subscribing to cable) right now is very high. In fact, I believe it’s the highest in the nation. … It’s not like you’re going to be able to go out and find new customers."

Advocates for the PEG Access channels across the state — PBS Hawaii, ‘Olelo Community Media on Oahu, Akaku Maui Community Television, Ho‘ike Community Television Inc. on Kauai and Na Leo ‘O Hawaii on Hawaii island — testified against the bill but noted support for its intent.

"We certainly think broadband is good for Hawaii," said Roy Amemiya Jr., president and chief operating officer of ‘Olelo. "We just are disappointed that they would look to the cable access monies to try to fund this thing."

Yabusaki also testified against the bill as written because capping the department’s revenue stream would "adversely impact its ability to fund broadband projects and infrastructure" during a time when the state is expanding the department’s broadband responsibilities, he said.

Oshiro said he is interested in looking into DCCA’s finances in more detail because the cable division appears to have a hefty surplus of funds that could be tapped.

Yabusaki, on the other hand, said the DCCA is required to have one full year of expenses in its account at all times and noted there were several positions vacant last year and state furloughs were in effect for most of the year.

"There was a one-time-only savings on the salaries and when you run as small a department as we do, that kind of makes up a decent amount," he said. "Last year’s budget, because of all the changes and what not, might not be a good year to look at numbers."

Numerous concerned community members testified that capping the PEG Access channels’ budgets would limit free speech because the educational services and programming opportunities offered by the channels would likely decrease.

"We’re not quite sure of that supposition at this point in time," Oshiro said. "If I talk to my constituents who have cable TV and use and take advantage of community broadcast services, I don’t know if they are happy or not happy with the current level of community broadband stations in comparison to this other need."

A representative from Oceanic Time Warner Cable was one of few to testify in support of the bill.

"Oceanic believes that a critical factor to achieving Hawaii’s broadband goal is adoption," Jeannine Souki said. "Funding additional laptops in the education system will increase broadband usage in schools and at home where there is currently no usage."

The bill now has the potential to cross over to the Senate for further consideration.