Report: State Fair is 'operationally insolvent'

From KOB-TV.com - A new state report has damning words about the financial future of the New Mexico State Fair. The report, done by the Legislative Finance Committee and released Thursday, says the fair is essentially bankrupt and is continuing to operate only because it has not paid key creditors. The largest amount owed is $1.9 million to the New Mexico General Services Department for insurance coverage dating back several years. The report says the fair has also failed to properly manage two contracts - the lease with the Downs at Albuquerque and the carnival concessions contract. "In short, the New Mexico State Fair is operationally insolvent," the report says. "The New Mexico State Fair has been losing money for many years and currently lacks financial leadership. Including depreciation, operational losses totaled $17 million from FY06 through FY10 and cash reserves have been exhausted." The report says a "combination of management and legislative actions" are needed to correct the fair's financial problems. Those include changing the fair from being a self-sufficient "enterprise agency" of the state and instead placing it under the oversight of a number of state agencies, including the State Personnel office, the Department of Finance and Administration and the General Services Department. Within that framework, possible changes suggested in the report include shortening the length of the fair, tightening the management of contracts and cash collection and doing more preventative maintenance to avoid expensive emergency repairs. Read more

Report: State Fair is 'operationally insolvent'