said by TK Junk Mail :

Actually the national law in Congress sets aside 5% of franchise tax to go to the local community. The money doesn't go back to Washington,DC. Then the local community can do with it as they see fit.

said by SRFireside :

5% seems like a paltry sum, especially if a local community takes in much more from the local franchise fees. Plus what happens to local programming? State and federal franchises give little incentive for providers to cater to the actual local community.

said by fredlydeadly :

Where do you think that money comes from? It isn't like the cable/telcos reduce their profit margins - they just boost what you pay to pass the additional cost through.