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Thursday, September 20, 2007

State Fair 2007 Revenues Up

Again, the State Fair folks catch me sleeping. Last year, they didn't release revenue figures until October. This year, within two weeks of Labor Day, the State Fair Board and South Dakota Department of Revenue and Regulation are able to publish the fair's revenues. This speed is surprising, since they apparently had more receipts to count this year:

  1. Gross sales were up 22.8% ($934,565.97 for 2007, compared to $760,909.52 in 2006).
  2. Total tax revenues were up a similar 22.6% ($69,342.66 for 2007, compared to $56,559.16 in 2006). That includes sales tax revenues of $37,382.66 for the state and $18,691.28 for the fair city of Huron (assuming the DRR's figures don't include all those Forestburg melon sales serving hungry fairgoers along the many scenic routes weaving through the Jim River Valley).
Now let's remember that the state subsidized this year's fair to the tune of $750,000 -- even if they didn't go, every South Dakotan paid the State Fair one dollar. We broke even on the cosmic scale, generating $1.25 of sales for every $1 of tax money invested. Looking at it purely from the government perspective, though, we spent $13.26 for every tax dollar we generated.

Are we getting our money's worth? The Rapid City Journal doesn't think so, seeing government handouts that don't produce sufficient statewide return on the investment. South Dakota Magazine sees his dollar-a-year as money well spent, though he urges the Fair to take some lessons from smaller successful fairs like the Turner County Fair and rediscover its rural roots.

The Madville Times looks around at smaller fairs and wonders how they make it without big handouts from Pierre. The profitable Turner County Fair, the oldest fair in the state, draws 60,000 people to Parker, a town of 1,000, and has been a free-gate fair since 1961. It doesn't take $750,000 from Pierre to put on a great event. (The Turner County Fair website is also powered by Linux -- maybe open-source software is the key to running a fair in the black!)

6 comments:

  1. Why not make the State Fair a truly "State" Fair and allow communities to bid on hosting it, moving it from community to community every two or three years. Just because Huron traditionally has been known as the "spot" for the fair, Aberdeen, Pierre, Rapid, Sioux Falls, Yankton and other communities like Mitchell and Brookings could easily put together proposals to host the fair for a two or three year consecutive period. The state wouldn't have to pony up one dime. Local community development funds, extra penny sales tax revenue and county dollars could be used to attract this money-generating event, allowing the public to visit different communities instead of sleepy boring Huron each year. We use the same process for the State Basketball Tournaments and it would work for the State Fair, while savings taxpayers at least a dollar a year ($750,000).

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  2. Huron will hate you, Anon, but that's some good creative problem-solving! The State Fair is a different monster from the state basketball tournament: you need a larger variety of facilities for all the different events at the fair (e.g., state basketball doesn't have to deal with cow manure). But if a town thinks it has enough barns, exhibit halls, a good grandstand, etc., why not let them bid? I hear competition is good....

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  3. I take it that anon hasn't been to the state fair. I don't think other cities will want to spend the money to put up the facilities to host the state fair just for one year, and then it's gone, maybe never to return.

    Gee, even when the figures are good coming from the state fair, people bash it. Why not go next year and see what you have been missing?

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  4. No bashing from this writer, Nonnie! I'm eager to see the State Fair recapture its past glory and help Huron's economy, so we can divert that $750K subsidy to higher-priority public projects.

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  5. After all the State Fair bashing, it is obvious that some other city in South Dakota wants to host it.

    When some other city (Sioux Falls) finally does get the SD State Fair, just where do they plan to have the Fairgrounds located. Could it be those that bash it are the ones owning land or are in some way going to benefit by having it there.

    I would bet, when the Fair is finally located there, the SD Legislature will award millions each year for its upkeep. In on way, the South Dakota State Fair is better than the Minnesota State Fair where they have the livestock in cages and you can hardly see them. The entertainment quality between the two Fairs is equal.

    Obviously, the person calling Huron boring is more interested in shopping malls, and if that is the case, they should go to Sioux Falls or Minneapolis shopping. They aren't interested in seeing what is on a Fair grounds.

    This is the first time I've found this blog and find it very negative and I will not waste my time coming back to it.

    ReplyDelete
  6. First-time/last-time visiting Anon makes a good point: a fair portion of fair-baching may well come from folks interested in bringing the fair and the fair money to their hometown. Just to be clear, I stand to make no profit from moving the fair (it surely will never to Madison), and I would be even more negative about the state spending money to move the fair or subsidize it in another location.

    And on being negative: is this blog really any more negative than any of the other current-affairs blogs? Maybe some eager grad student in mass communication will do a quantitative study on "negative" blog content. There's nothing wrong with pointing out, discussing, and seeking solutions for the errors and injustices in the status quo. But the Internet is a big place: if all Anon wants are happy blogs ("Huron's a beautiful town! Mike Rounds is a nice man! My kids had fun at daycare today!"), I'm sure Anon can find plenty of such content to soothe her/his burdened soul.

    ReplyDelete

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