Cal Expo close to receiving $6 million bailout package after Legislature sends it to Newsom

Gov. Gavin Newsom was expected to sign legislation giving Cal Expo a $6 million bailout package, after the measure was approved as part of a broader set of appropriations by the Legislature.

Cal Expo said Tuesday that the money — half of which would be a one-time payment with the other half as a loan — would allow operations to continue through the 2020-21 fiscal year. The bill also gives Cal Expo the option to ask for $3 million more down the road.

Cal Expo, home to the California State Fair, faced significant financial challenges this year due to the coronavirus-related cancellation of the annual fair, which resulted in $16 million in lost revenue, and the cancellation of almost 200 other events, which resulted in $6 million in lost revenue.

In a statement on May 15, Cal Expo General Manager and CEO Rick Pickering expressed concern that the agency may be unable to operate as soon as September.

“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,” Pickering said.

On Tuesday, the agency said it was relieved to hear the bill passed the Legislature.

“The Cal Expo Board is grateful for the Legislature’s and the Governor’s commitment to keep Cal Expo open and to ensure we can continue to provide much-needed crisis response services,” Pickering said.

Cal Expo has been used as a coronavirus testing site and provided temporary housing to homeless COVID-19 patients.

This story was originally published September 1, 2020 at 4:54 PM.