Akakū Maui Community Media says a long-awaited state deal with Spectrum is about to yank about $400,000 a year out of its budget, a hit the nonprofit warns could gut services across Maui County and possibly shutter its Molokaʻi studio. With staff already cut nearly in half, Akakū is now fighting the decision in court and bracing for a battle that could reach the Hawaii Supreme Court.
What the DCCA Order Does
In Decision and Order No. 391, the state’s Department of Commerce and Consumer Affairs approved a 15-year renewal for Spectrum Oceanic, LLC’s cable franchise in Maui County. Tucked into that renewal is a provision that lets Spectrum keep the greater of $400,000 or one percent of its gross revenues each year to cover operating and maintenance costs for the state’s institutional network, or INET.
According to the order, Spectrum’s retained amount will be calculated annually beginning Jan. 31, 2027. The state sets out reporting requirements and possible adjustments tied to INET route mileage, laying the groundwork for how much Spectrum can hold back from what would otherwise go to community media.
Akakū Says Its Operations Are Threatened
Akakū leaders say that $400,000 “takeback” is not just a line item. It amounts to roughly 35 percent of the nonprofit’s approximately $1.1 million operating budget. The organization has already shrunk its payroll from 23 employees to 12 and warns that more cuts would almost certainly mean fewer programs and could force the closure of its Molokaʻi office.
“The sad thing is that it is entirely possible that an unwitting and uninformed DCCA may be doing this because they are ignorant of the founding principles of what Public Access is all about,” Akakū CEO Jay April told Maui Now.
Federal Rule at the Center
The dispute traces back to a 2019 order from the Federal Communications Commission that allowed certain INET maintenance costs to be counted against the federal 5 percent cap on cable franchise fees, according to the FCC.
In 2021, the U.S. Court of Appeals for the Sixth Circuit largely upheld that FCC order, according to the U.S. Court of Appeals for the Sixth Circuit.
Those federal rulings are cited in the state’s renewal decision and form the legal backbone for Spectrum’s ability to claim the retained amount for INET costs.
Other Islands Already Felt the Squeeze
Officials and advocates point out that Maui is not the first to feel the sting. Kauaʻi’s community media operations saw their own budget squeeze after an earlier Spectrum franchise renewal that leaned on the same federal framework, according to Maui News. Local leaders warn that such shifts risk hollowing out public access services that often provide one of the few media lifelines to remote communities.
At the national level, media advocates and some members of Congress have pushed back, urging lawmakers to shore up public, educational and government (PEG) channels and blunt the impact of the franchise-fee changes. Proposed legislation seeks to protect community television as a public good and to restore more predictable funding, according to a release from Sen. Markey’s Office.
Legal Fight and Next Steps
A Maui Circuit Court judge recently dismissed Akakū’s challenge to the DCCA decision, ruling that the nonprofit lacked standing to intervene. Akakū has appealed to the state Intermediate Court of Appeals and says it is prepared to take the case to the Hawaii Supreme Court if necessary, Maui Now reports.
While the legal fight plays out, Akakū says it is leaning harder on production work, sponsorships and digital outreach in an effort to keep local reporting alive and visible for Maui County residents. For background on the organization’s mission and studio locations, see Akakū Maui Community Media.
