County CAO Richard Egan outlined significant concerns for the Lassen County Fairgrounds during the budget hearings, citing notable financial shortfalls. Egan reported that the fairgrounds had overspent by $150,000 and failed to meet revenue expectations. The recommended budget carried a zero balance for Line item 175, the Fair, which included a $280,000 general fund contribution retroactive to July 1st of this year to break even on last year’s budget. Additionally, Egan proposed a $500,000 allocation from the general fund to keep operations afloat going into the new fiscal year, which he described as a “bare-bones” approach. He stated to the board to “consider not having a fair” given the budget concerns, but not before noting the 2025 fair will take place since events are already in motion.
The fairgrounds have historically struggled to sustain themselves, recently relying on $900,000 from the Dixie Fire settlement until last year, along with various general fund contributions over the years, as explained by Egan. Nancy Cardenas, County Auditor/Controller and Treasurer/Tax Collector clarified that it is typical for the fair to start the fiscal year in the red, yet noted the expenses were typically recovered. Cardenas stressed her concerns about effective communication between the department heads and the board and recommended regular discussions to avoid outcomes like this in the future.
Kaitlyn Midgley, the former fairgrounds manager, who resigned effective Friday, September 27th, addressed the budget concerns in an email.
“The Lassen County Fairgrounds is currently navigating financial difficulties as it enters a new fiscal year, which began on July 1. Historically operating at a loss during this time, the fairgrounds relies on limited revenue from the annual fair and the newly added Hidden Woods Music Festival, resulting in negative financial performance until ticket sales for next year’s events close this gap.
Under the leadership of Kaitlyn Midgley, the fairgrounds has been able to maintain operations despite challenges. Since the 2021-2022 fiscal year, a fund balance of approximately $500,000—sourced from the Dixie Fire Camp—has supported operations. Prior to this, the fairgrounds relied on annual contributions from the county, which ranged from $100,000 to $300,000 to cover essential operating expenses.
Midgley has communicated to the Board of Supervisors and county administration that without establishing another event comparable in size to the fair, the fairgrounds will continue to require general fund contributions to remain viable. The fair itself generates around $500,000 annually, which barely offsets salaries and utilities, underscoring the need for additional revenue-generating events.
The Lassen County Fairgrounds remains committed to serving the community and is actively seeking partnerships and new event opportunities to ensure its financial stability and continued operation.”
Egan suggested that the county should consider dropping the Hidden Woods Music Festival and seeking partnerships with the City and Susanville Indian Rancheria to generate additional revenue. During the budget hearing, he advised the board to consider the implications of funding cuts carefully, stressing that such decisions would impact “real people, real employees” who are not responsible for the financial challenges faced by the fairgrounds.
The supervisors approved the recommended budget with appropriations totaling nearly $42.5 million. The fairground facilities will remain open with considerations to not hold a 2026 Annual Fair, discontinue the Hidden Woods Music Festival, and partner with other stakeholders.
The full discussion can be viewed through JDX and KSUE News and Weather Facebook page as the meeting was live streamed and posted for the community.
