The Colorado State Fair racked up a nearly $1.2 million operating loss in 2006 – prompting the state auditor to raise concern Tuesday about the fair’s financial viability.
The loss, which doesn’t count the decrease in value of fair buildings and other property, is the fourth year in a row that the fair has posted a larger loss than the previous year, according to the auditor’s report.
In addition, efforts by fair management to cut costs by reducing the fair’s operation from 16 days to 11 failed to curb the growing losses.
Colorado Agriculture Commissioner John Stulp said taxpayers should expect to help cover the fair’s annual bills because the fair provides a service to state residents.
“We saw the fair as an opportunity to give back to the community,” said Stulp, describing his experience funding county fairs for 13 years as a county commissioner. “We subsidized the opportunity for people of the community to come together.”
Stulp inherited the financially strapped state fair this year when he became Gov. Bill Ritter’s commissioner of agriculture.
Taxpayers will subsidize future state fairs. In 2006, lawmakers approved giving the fair $550,000 per year to help cover operating costs.
Last year’s financial woes were caused in part by inclement weather, which decreased attendance, said Chris Wiseman, general manager of the State Fair.
Another factor: rising energy bills. The fair spent about $125,000 more for electricity last year, Wiseman said. The fair plans to hold those costs down by redesigning the fairground’s electrical system.
Higher gasoline prices also dampened attendance at nonfair events, such has horse shows and car races. With lower attendance at such events, the fair collects less money from food and beer vendors.
In addition, the cost of entertainment bookings was not adjusted for the shorter, 11-day fair. This year, the fair will have musical entertainment on eight nights to reduce the costs associated with those events.
To limit future losses, the fair’s management has raised admission rates on the weekends from $6 to $8.
This fair will also allow beer vendors to increase prices from $5.50 to $6.25, potentially boosting the fair’s share by as much as $35,000.
Also, tickets for unlimited carnival rides will rise from $20 to $25. That move could raise as much as $200,000.
Some lawmakers on the Legislative Audit Committee defended the fair, which has existed for more than 125 years, as an essential part of the state’s agricultural heritage and as a training ground for future state leaders who are members of 4-H clubs.
Still, other lawmakers have suggested moving the state fair out of Pueblo to break its money-losing ways.
“I’m afraid the fair is going to die if we don’t move it or do something,” said Sen. Steve Johnson, R-Larimer County, who has supported efforts to move the fair to the Budweiser Events Center in Loveland.
Johnson suggested that the state could invest the same amount of money in economic development in Pueblo and have a better impact than a money-losing fair. Another option: Rotate between Pueblo and Loveland to minimize losses.
Wiseman rejected the idea as impractical because Loveland’s facility is not equipped to offer everything that Pueblo can offer.
“If you want to do a quality fair,” Wiseman said, “the only way to do it is at the Colorado State Fair in Pueblo and at that campus.”
Staff writer Mark P. Couch can be reached at 303-954-1794 or mcouch@denverpost.com.
Operating losses at the Colorado State Fair
Operating losses exclude depreciation and amortization costs.
Year ending June 30 … Loss
2006 … $1,167,995
2005 … $737,361
2004 … $639,851
2003 … $574,770
2002 … $397,826
Source: Colorado State Auditor
