(SACRAMENTO, CA) - On behalf of the Cal Expo Board of Directors, Cal Expo General Manager and CEO Rick Pickering issued the following statement regarding the Board’s decision to direct staff to take steps to address the loss of revenues caused by the cancellation of the 2020 State Fair due to the COVID-19 crisis:
“As shared during our Board meeting, the COVID-19 crisis has had a significant financial impact on our revenue. Last month, we took the necessary action of postponing the California State Fair until 2021, which will cost Cal Expo an estimated $16 million in revenue. Prior to this decision, most of the 200 events that are held annually at the Cal Expo were also postponed or canceled, costing Cal Expo an additional $6 million in lost revenue.
“Before and immediately following these decisions, Cal Expo initiated cost-reducing measures by negotiating reductions in contracts and by decreasing reliance on seasonal workers. As an independent state agency, we have done our best to find new and creative ways to generate the revenue needed to operate and serve the community.
“While we believe these decisions were necessary and in line with the public health guidance issued by the Governor, postponing the California State Fair and other events hosted at our facilities will cost Cal Expo an estimated $22 million in lost revenue. With $6.8 million in cash reserves and continued operating costs of $1.33 million per month, the reality is Cal Expo will not be able to meet its obligations as early as September 2020.
“Unfortunately, as a state agency, Cal Expo does not qualify for a PPP loan from the federal government. Compounding this situation is the fact that unlike other state agencies, Cal Expo does not currently receive a state funding allocation. In order to continue operations, we will need significant and immediate support from the State of California and thus, Senator Richard Pan has requested state budget funds to help stem any potential job losses until Cal Expo can resume normal business operations.
“At this time, we have remained open in an effort to do our part regionally to combat COVID-19 by hosting a free testing site for Sacramento County residents and by providing a location for temporary shelter to homeless individuals who may have tested positive for COVID-19.
"Cal Expo is critical to emergency preparedness for the region and other state crises. It’s important to note that over the last five years Cal Expo has self-generated $135 million that has gone back into the operations and maintenance of the fairgrounds which is available to the state and region for crisis response."
“We remain hopeful that as public health conditions improve, so will the regional economy, and that Cal Expo will be able to continue its social and economic contributions to California and the Greater Sacramento area.”
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