The Lassen Board of Supervisors will again focus on the fair budget this week, addressing the significant deficit in the Fair Fund through three agenda items. During the September budget hearings, controversy arose over the need to supplement the Fair Fund with general fund money—a standard practice but now under scrutiny. The board criticized former fair manager Kaitlyn Midgley for last-minute approvals related to the Hidden Woods Festival, an event designed to diversify the fairgrounds’ offerings and create a new revenue stream to reduce reliance on general fund contributions. While Midgley acknowledged the festival would lose money in its first year, she warned the board that without similar events, the fairgrounds would continue to depend on general fund support. The board had agreed to the anticipated loss.
Midgley resigned from her role on September 27th, telling Lassen News she felt her job was at risk due to being an at-will employee and leadership changes.
In response to Midgley’s claim, CAO Richard Egan responded with an email stating that the Hidden Woods Festival contributed to nearly half of the fair’s financial problems. He explained that the event was organized outside the typical budget process, with last-minute approvals. Egan also admitted responsibility for presenting overly optimistic fair revenue projections, which he says he has since corrected for future years by lowering them.
This Tuesday, the board will consider budget modifications to address the fair’s deficit. These include increasing the previous fiscal year’s budget by $120,258.12 and transferring $295,000 from the General Fund to the Fair Fund. Approval requires a four-fifths vote, and no additional fiscal impact is expected.
Additionally, the board will discuss the role of the fair manager following Midgley’s resignation and the appointment of Interim Fair Manager Sam McMullen. They will also address outstanding bills for the Hidden Woods Festival, totaling over $82,000, which exceeds the approved budget of $308,000 for the event.
The board’s agenda can be found on the county’s website.
