Committee Continues Arizona Exposition and State Fair Board Review after Presentation on Economic Impact and Capital Needs

The Senate Regulatory Affairs and Government Efficiency Committee voted to continue the review of the Arizona Exposition and State Fair Board with revisions after a presentation by Juanel Costello, executive director of the Arizona Exposition and State Fair.

Costello told the committee the fairgrounds generate substantial annual economic activity and community programming while operating as a largely self-funded agency. She cited an economic-output estimate of about $138,000,000, $48,200,000 in annual wages tied to fairgrounds activity, about 1,400,000 fair guests annually and roughly 2,000,000 year‑round visitors. Costello also said the agency reinvested roughly $18,000,000 into the grounds since 2016 and contributed $5,000,000 in agency‑generated funds to the state general fund in 2024.

Committee members pressed Costello on several issues: the agency’s claim of being self funded, rising event and concession prices, availability of facilities for emergency responses, and the state of aging buildings and capital planning. Senator Epstein noted the agency has received state general fund appropriations for capital projects in the past — for example, funding for a coliseum fire alarm system and a building roof — and asked Costello to clarify the “self funded” characterization. Costello responded that day‑to‑day operations are primarily supported by agency revenues, and that general fund assistance has historically been limited to specific capital projects.

On pricing and vendor costs, Senator Ortiz and other members raised concerns about rising ride and food costs that can limit access for lower‑income families. Costello said vendor fees have not increased in more than a decade and are charged as a roughly 23% revenue share that also covers electricity and vendor access; she said rising food and labor costs drive consumer prices and that the agency works with vendors to identify discount days and other affordability measures.

Members asked about emergency use of the coliseum during heat events; Costello said existing event contracts and building renovations limit long multi‑month availability, and noted the coliseum is about 60 years old but remains in regular use and in workable condition. On whether the fairgrounds might move to a new site, she said prior analyses showed moving was not economically feasible because of utility and infrastructure demands and that the current location is centrally accessible via regional freeways.

Costello described capital appropriations in recent fiscal years as an important step; she said the fairgrounds were appropriated just over $3,000,000 in the most recent budgets (compared with prior appropriations of about $1,000,000) and that more funding would be needed to address all needs. She also said the agency is beginning work on a capital plan with the state procurement and general services offices.

After questions, the vice chair moved that the committee recommend the continuation of the Arizona Exposition and State Fair Board with revisions. The motion passed on a voice vote; no roll‑call tally was recorded in the transcript.

The committee said it will produce guidance and recommendations as part of the continuation and indicated it expects additional follow‑up with agency staff on capital planning, building condition and community access issues.