Lawmakers consider tax on cell phone lines to fund public broadcasters

OLYMPIA – A state lawmaker has proposed a monthly 20 -cent surcharge on cell phone lines as a way to a provide a lifeline to struggling public broadcasting stations that recently faced federal funding cuts.

During a hearing in the House Technology Committee on Friday, Rep. Chris Stearns, D-Auburn, said public broadcasting helps provide a sense of community in a world that’s increasingly disconnected.

“You see that on the streets, you see that in the news. What do we need? We need that connection,” Stearns said in his testimony. “That is what art and music provides, but it’s more than that. It’s the community news and emergency messages that rural and small market radio broadcasts, they save lives, too.”

If approved, the new tax on cell phone lines would take effect 90 days after the Legislature adjourns. According to a fiscal note attached to the legislation, the tax could bring in about $50 million between 2025 and 2027.

Under the program, 85% of the funding would go to stations with an annual budget of more than $1 million. They could receive grants equal to 8% of their annual expenses or $1.5 million, whichever is greater. Stations with an annual budget of less than $1 million would be eligible for 15% of the funding, and could receive a minimum of $5,000 and up to 8% of their yearly operating expenses.

The program would be administered by the Department of Commerce. The funding could not replace other money stations may receive from the general fund.

Supporters say the funding would help buoy stations that saw their federal funding slashed last summer.

Last summer, Congress rescinded $1.1 billion in funding for the Corporation for Public Broadcasting, a nonprofit corporation that supported 1,500 stations throughout the country. In early January, the corporation’s board of directors voted to officially shut down.

Spokane Public Radio lost about $250,000, about 12% of its yearly budget. Spokane’s KSPS-PBS television station lost about $1.2 million in its annual budget, which was around 20% of the station’s annual revenue.

“At a time when every resident of the state of Washington is struggling with isolation, with fear, with emergencies, it’s public radio and public television that has been there for them by providing essential connections and hyperlocal information in our communities,” Stearns said. “But we haven’t always been there for them. And their existence is now threatened by further cuts in funding at the federal level.”

Skyler Reep, interim general manager and development director at KSPS PBS, said in his testimony Friday that despite an increase in donations, the station had to cut staff and paid interns as a result of the lost funding.

“Public media is essential civic infrastructure, much like libraries and schools,” Reep said. “We operate under strict standards for editorial independence and accountability, and we serve communities across the political spectrum without subscription fees, paywalls or commercial pressure.”

Reep said funding from the new tax would help “Washingtonians, regardless of geography and income, can continue to access education, emergency information and trusted community connection.”

The bill, however, has received pushback, both from taxpayers concerned about the new fee and from the telecommunications industry. Jeff Gombosky, who represented the Cellular Telecommunications and Internet Association, said the state already has the second highest taxes on wireless communication in the country.

“About 35% of our average consumers bills is composed of taxes, fees and other government surcharges,” Gombosky said. “We’re behind only the state of Illinois when it comes to those particular charges.”

Gombosky said the fee would be felt disproportionately by lower income residents.

“This is a regressive tax,” Gombosky said. “About 83% of consumers rely exclusively on wireless communications for their telecommunications needs.”

The bill is currently scheduled for a committee vote on Tuesday.