Officials Weigh Wilson Proposal to Privatize Fairs

Two local fairs could fare quite differently under Gov. Pete Wilson’s proposal to turn the operation of all state fairs over to the private sector.

Even though the proposal could mean the elimination of some or all of the funds that fairs receive from the state, Mel Simas, interim manager of the large Antelope Valley Fair, said privatization could help the Lancaster-based event.

For example, he said, the extra costs of adhering to state rules and regulations and dealing with time-consuming state bureaucracy would be eliminated.

“Sometimes, when you weigh the extra work and extra problems, it’s not worth what you get from the state,” Simas said.

The Antelope Valley Fair receives only $80,000 of its $3.7-million annual budget from the state.

But a loss of state funding could be a big blow to the small, financially struggling San Fernando Valley Fair, which is more dependent on state support and has no permanent site, leaving it with fewer revenue sources.

Without state support, fair organizers “would have to make darn sure the product they’re selling is desired by the community,” said Stephen J. Chambers, executive director of the Western Fairs Assn., a Sacramento trade group.

Dale Coons, general manager of the San Fernando Valley Fair, acknowledged that privatization “is going to present a real challenge for us.”

The 46-year-old fair, which has been trying to recover from its financial woes by cutting costs, gets $85,000 of its $600,000 annual budget from the state. Last year, it had a $50,000 deficit, in contrast to a $265,000 shortfall two years before.

Even so, Coons said of Wilson’s proposal, “I don’t think it’s a negative by any means,” adding that the fair still has strong community support and many sources of additional revenue that haven’t been tapped.

Wilson’s proposal was made as part of a $51-billion budget package unveiled earlier this month. Although a detailed plan has yet to be formulated, the purpose of the idea is to help trim costs for the cash-strapped state.

Of California’s 81 fairs, 54 are run by state agricultural districts and receive funds from taxes that the state levies on horse racing.

The state Department of Food and Agriculture, which oversees the fairs, is studying the privatization issue and will present its report to the governor by March 1. “There’s no suggestion of reduced funds in the governor’s budget at this time,” said Norm Towne, director of the department’s horse racing division. But, he added: “everything is on the table.”

Chambers said the fair association would fight to maintain at least some of the state dollars, with the debate centering on “how much funding we will give up in exchange for more flexibility” for fairs to manage their own affairs and hire their own staffs instead of civil servants.

Despite the possible loss of some state funds, Chambers said he was “very excited by the idea” of privatization. He said there are many well-run private fairs in the state, including the Los Angeles County Fair, that can provide a road map for those now operated by state agencies.

Large fairs such as the Antelope Valley Fair are in the best position to prosper as private enterprises, Chambers said, because they are less dependent on state support and have more sources of revenue. The Antelope Valley Fair derives revenues from ticket sales, exhibitor fees, an off-site betting facility that allows fair visitors to wager on horse races at Hollywood Park and elsewhere, and from renting out the fairground for other uses.

The fair, which takes place for several days around Labor Day, drew more than 302,000 visitors in 1992, a 7% increase over the previous year.

Though financially successful, the Antelope Valley Fair has had its problems in recent years. The former supervisor of the fair’s off-track horse race betting facility, Jack L. Farmer, is currently facing embezzlement charges, and the fair’s manager, Jack Pacini, abruptly resigned in November, citing his desire to pursue other career interests.

Pacini’s predecessor was convicted of misdemeanor theft of fair property in 1990 and Farmer’s predecessor was convicted of embezzling fair funds in 1989.

Simas, a veteran fair manager, was hired as interim general manager in December. He said he expects a permanent manager to be named in March.

The San Fernando Valley Fair has been plagued by troubles of a different sort. In addition to its financial losses, the fair is one of only two in the state that has no permanent site.

In 1988, the fair was evicted from its longtime home at Devonshire Downs, after which it moved to the Hansen Dam recreation area.

Last July, the fair was held at the Los Angeles Equestrian Center in Burbank, a move that Coons said saved more than $100,000. But rainy weather hurt attendance, which dropped to 35,000 from 50,000 in 1991.

This year’s fair will again be at the equestrian center from July 8 to 11.

The San Fernando Valley Fair also has lost one of its biggest champions, Alan Robbins, the former state senator from the Valley who is now serving a five-year prison sentence for racketeering and tax evasion.

But Coons maintained that the fair is receiving strong support from other local legislators, including Robbins’ successor, David A. Roberti (D-Van Nuys).

Although Coons hopes the fair won’t have to give up the state money, she said the loss could be offset by new revenue sources. For instance, the fair could start charging separate entrance fees for events such as the rodeo and concerts.

“If you tighten your belt and become creative, there’re all sorts of avenues for you,” she said.