Because of statewide budget troubles, fairground officials are concerned that maintenance of facilities and exhibitor payouts will become a more difficult task in the near future.
If funding doesn't come through, there could be an effect on how the fairgrounds will be run and maintained, said Tom Edman, Ingham County Fairgrounds executive director.
"We are doing fine as we speak," he said. "But if we can't pick up additional funding, then we'll have to come up with additional sources of money."
State funds for fairgrounds come from many different sources including the Fairs, Exhibitions and Racing Division of the Michigan Department of Agriculture, in addition to small tax and service fees from three Detroit casinos, said E.J. Brown, executive director of the Michigan Association of Fairs and Exhibitions, or MAFE.
The budget crisis is going to affect profitability as well as the well-being of a community, he said.
"It's going to have an economic impact to the communities the fairs are in," Brown said. "The number of exhibitors may be down, due to lack of funding."
Reduced funding will affect the upkeep of fairgrounds for the other 51 weeks of the year - when a fair isn't running on the grounds, he said.
Exhibitors, such as 4-H members who show horses and local farmers who bring in their prized vegetable plants, may be reluctant to sign up for fair activities or competitions due to an undetermined amount of premiums.
Premiums, or money paid to exhibitors by the fairground they participate in, come from state funding. Right now, premiums have been frozen as the Michigan Legislature is still determining how much money should be extracted from the shaky state budget.
"Premiums are still standing this year so far," Edman said. "We have a condition that will allow the fair board to prorate premiums made, and at this time, that decision has not been made to do that."
A prorate on the premium would mean if state funding doesn't come through, the Ingham County Fairgrounds could cut premiums down to make it more equal to the fair.
Premium amounts will not be distributed until the beginning of the fourth quarter, said Tom Valliere, treasurer of MAFE and manager of the Midland County Fair.
"We are sitting in limbo, not knowing what to do," he said.
Pat Lamison, an MSU Extension educator for the 4-H youth program, said although the youth participants may miss out on their premium payouts, it won't stop them from participating.
"It's a wonderful thing for kids to be doing this," she said. "The premium is just an incentive, and kids participate on other merits. They enjoy the fair experience and all the camaraderie."
Also in jeopardy are the state matching funds, which affect the overall profitability of fairs.
Matching funds are allocated to fairs by the state depending on how much money the individual fair spends - these funds help offset last minute items spent by the fairs, Brown said.
"The fairs spend money, and the state matches up to 50 percent of the money spent," he said.
While the uncertainty still looms over fair funding, there may be fewer fairgounds in the state next year. Currently there are 88.
"We won't know the impact until late October or early November," Brown said. "It's a good possibility three or four fairs will go out of business in the upcoming year."
Although much of a fair's well-being depends on finances, fairground enthusiasts still play a significant role on overall fair success, Edman said.
"Ingham County does include Lansing, so we're looking forward to that and hoping for a good fair," he said. "We hope people will come out and celebrate 153 years of heritage and tradition in the Lansing area."
