KSMQ, the public broadcasting station owned by the Austin School District for 30 years, is searching for potential new owners.

With a 34 percent cut in state grants this year, the station needs a financial boost, and the district is in no position to provide that.

"It only makes sense for us to look at possible partnerships so we are less dependent and less vulnerable to state cuts and federal cuts with more support from our license holder," General Manager Jude Andrews said.

Budget problems have forced the station to eliminate three positions in the last month, and it has stopped local programming to recoup some of the lost revenue. Andrews said local programming is a priority, and they will reinstate it once they find the financial means to do so.

The school district and KSMQ are in agreement that a new license holder is probably in the best interest of the station.

Superintendent Corrine Johnson said they have always had a good relationship.

"For that reason we think they need to find an entity in town or out of town that will help them grow," she said.

While Andrews has no commitments yet, she said there are some interested parties in the region. She has talked with groups in Austin and other communities and said the station has a lot to offer.

One of the selling points for the station is that it has upgraded its equipment, allowing it to go totally digital. The $2 million transition was done to fulfill a mandate by the Federal Communications Commission (FCC).

Digital capabilities, however, offer a number of options beyond broadcasting television programs.

With the potential for four different digital channels, data exchanges, cell phone signals and police and fire communications are just a few of the options the upgrades would allow a new owner to explore.

"I'm hoping there are forward-thinking enough people in this region that think this is an opportunity for them," Andrews said.

If someone is willing to put in the investment, the license will go for a pretty good price. Johnson said it would probably sold for a token fee of $1.

Andrews said she is confident a buyer will make the move.

"Who wouldn't want to own a broadcasting station?" she said. "I know I'd like it."

And despite their problems now, she is optimistic.

"I think we have a really good future, I really do," she said. "It's just finding the right elements."

Matt Merritt can be reached at 434-2214 or by email at matt.merritt@austindailyherald.com