Amador County – A Sacramento nonprofit organization said the governor’s budget proposal to eliminate 100 percent of annual funding for California fairs puts 29 California fairs at risk of closure, and could threaten $126 million in annual tax revenue to the state general fund.

Stephen Chambers of the California Fairs Alliance said the governor’s plan was expected to cost the General Fund $57.4 million in lost annual income: “The fair network generates more than $126 million in direct tax income for the state every year. That represents nearly a four-to-one return on the state’s overall $32 million investment.” He said “the budget plan actually dries up an income stream that flows to the state from California fairs.”

The proposal “could drive 29 fairs completely out of business, including dozens of primarily rural fairs,” Chambers said: “This would result in a major economic ripple effect by killing jobs and related economic activities.”

The CFA anticipates “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. 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.”

Chambers said California fair officials have contacted Governor Brown’s office and legislators, 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. He said 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 its concerns and proposing alternative solutions during the legislative budget hearings this week.

CFA noted that the financial impact of California fairgrounds is well documented by the state, in a recent report, “California Fairs: Statewide Economic Impacts.” The report found economic contributions of fairs in the state 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.

Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.