The state's budget woes are hurting county fairs.
Funding for prize money for children participating in 4-H expositions has been frozen, while money for fairgrounds upkeep has been slashed.
Money for prizes may be released soon to fair organizers.
But they fear the deep cuts to funding for general upkeep of buildings and grounds could be permanent.
The money is collected through a tax on the three Detroit casinos and a share of wagers made at pari-mutuel race tracks.
Part of the reason funds are down is that horse track wagering has declined.
So far, the state has handed out about 600-thousand dollars for upkeep, a third less than a year ago.
The state gave out more than one and a half million dollars in prize money last year.