Merced County Fair (209) 722-1507 in Merced, California offers fairgrounds rental facilities for indoor or outdoor events, a June fair serving agricultural community features live performers, musicians, carnival, rides, rodeo, exhibitors, livestock, family fun

Proposal Puts 29 California Fairs At Risk of Closure

By Diane Booth Conway,

Merced County Fair Marketing Manager

Merced – The Western Fairs Association and the Merced County Fair are issuing a news release in response to the Brown administration's plan to eliminate annual funding for all of California's fairs. If approved, that's expected to put at least 29 fairs at risk of closure.

Although the Merced County Fair is not on the "at risk" list, the Merced County Spring Fair in Los Banos and the Mariposa County Fair are on the list. (The complete list follows the news release).

The Merced County Fair's reserves are low – a result of years of recession. "We won't go away just yet," said Tom Musser, the Merced County Fair's CEO. The fair has made spending cuts in all areas of its 2011 budget including personnel, he said.

The fair, which depends on building and fairgrounds rentals to help pay the bills, has lost several events to the economic downturn, including a car show, an RV sales show and a home and garden show.

"We will be counting on the 2011 and 2012 fairs to go as planned, without any problems such as significant rain or a heat wave," Musser said. "The Merced County Fair makes money for the economy," he said. In 2009, the Merced County Fair generated more than $30 million in economic impact, created more than 350 jobs and put more than $9.7 million into the pockets of local residents through salaries and benefits, according to a report from the California Department of Food & Agriculture (CDFA), Division of Fairs and Expositions (F&E). Tax revenues to local and state governments generated by fairs and events held at the Merced County Fair in 2009 are estimated at $251,000.

"You can't put a price tag on the memories that are made at our fair and at the fairgrounds 365 days a year – those are priceless – but we can put a dollar sign in front of the Merced County Fair's economic contributions to this county, and that number is huge," said Musser, adding, "We realize cuts need to happen, but it doesn't make economic sense for our state's fairs to be singled out for a 100 percent funding cut. "

The news release and at-risk fairs list follows. For more information, please contact:
Stephen Chambers, WFA (916) 952-6362
Tom Musser, Merced County Fair (209) 722-1507

FOR IMMEDIATE RELEASE Media Contact: Stephen Chambers (916) 952-6362
stephenc@fairsnet.org
www.westernfairs.org/cfa-news

Budget Proposal Puts 29 California Fairs At Risk of Closure

Plan Also Threatens $126 Million in Annual Tax Revenue to State’s General Fund

SACRAMENTO, Calif. (Feb. 3, 2011) – The Brown Administration’s plan to eliminate annual funding for California statewide network of fairs is expected to put 29 of them at risk of closure and could end up costing the General Fund $57.4 million in lost annual income, the California Fairs Alliance warned today.

“The fair network generates more than $126 million in direct tax income for the state every year,” said Stephen Chambers of the California Fairs Alliance (CFA). “That represents nearly a four-to-one return on the state’s overall $32 million investment. In this light, the budget plan actually dries up an income stream that flows to the state from California fairs.”

Along with a potential net income loss, the proposal could drive 29 fairs - including dozens of primarily rural fairs - completely out of business. This would result in a major economic ripple effect by killing jobs and related economic activities, according to CFA, which today also released the list of the 29 at-risk fairs and the formula for determining their status.

“Fair funding is seed money that creates a foundation from which the fairs are able to build up their true economic impact. While larger fairs may no longer need the platform provided by the funding, the majority of small and medium fairs do,” said Chambers. “If you destroy this foundation, the whole network is disrupted. If the ‘fair return’ to the state in tax revenue is reduced by just 30 percent, this aspect of the Governor’s budget proposal will bleed red ink from the General Fund.”

CFA noted that the financial impact of California fairgrounds is well documented by the state of California, which recently issued a report, California Fairs: Statewide Economic Impacts, which found its economic contributions to be significant, including: $2.8 billion in consumer spending, $855 million in income, 25,000 full-time jobs and $126 million in state and local taxes.

Absent proposed budget cuts, the fair network appears healthy. The fair network experienced a strong 2010 season with an overall growth in attendance and revenue. Budgets for the 2011 season are approved and funded and industry leaders expect another successful fair season as fairs continue to provide affordable, local, family recreational and educational experiences.

“We anticipate the state’s direct return on its investment to fairs to top $150 million in 2011 plus the added benefit of more than 30,000 full-time job equivalents,” said Chambers. “That income, those jobs and the future of 29 fairgrounds will be in serious jeopardy in 2012 unless we find alternatives to the Governor’s proposal.”

For these reasons, California fair officials have contacted Governor Brown’s office and legislators, said Chambers, to explore ways to trim fair funding and provide alternative funding mechanisms that won’t compromise the ability of fairgrounds to generate revenue for state and local governments.

“We are hopeful that with a more strategic combination of budget reductions, as well as greater local control and flexibility, we will be able to protect the fair network and increase income to state and local governments,” Chambers said. “Furthermore, a more thoughtful plan will ensure the survival of the thousands of small businesses and nonprofits that rely on fairs and fairgrounds in California.”

The California Fairs Alliance will be presenting their concerns and proposing alternative solutions during the legislative budget hearings next week.

The California Fairs Alliance (CFA) is a subsidiary of the Western Fairs Association, a Sacramento-based nonprofit trade association representing fairs and fair-related businesses in the western United States and Canada. The CFA consists of 76 California fairs divided into seven geographic areas. The Alliance provides training and information to the California fair network as well as legislative advocacy on behalf of California fairs.

California Fairs At-Risk

In order to measure the impact of Governor Brown’s proposed 100 percent cut of state funding for California’s fairs, the California Fairs Alliance developed a list of fairs that will be most at-risk for temporary or permanent closure.

The basic formula for selecting the listed fairs relied on their 2009 year-end fiscal statements (latest available). Those fairs whose operating income showed a 20 percent or greater reliance on state support were considered at risk as well as those fairs that experienced a net loss in 2009 and have an operating reserve of less than five percent.

This list is not meant to suggest that the remaining 49 fairs are not also “at-risk” as a result of the elimination of state funding. Fairs that had a difficult 2010 season and/or other factors could easily be added to the most at-risk list. The 2010-11 budget numbers are just now becoming available and we expect this list to grow. CFA will release an updated list next week.

Fairs operate on a calendar year and funding for 2011 is secure. These impacts are projected for 2012.

Most At-Risk List

1. Butte County Fair

2. Colorado River County Fair

3. Colusa County Fair

4. Glenn County Fair

5. Humboldt County Fair

6. Inter-Mountain Fair of Shasta County

7. Kings Fair

8. Lake County Fair

9. Lassen County Fair

10. Mariposa County Fair