Empty Sky on July 4? Blame the Economy

July 3, 2008 — -- John Gross says he doesn't know anyone who doesn't like seeing a hometown fireworks show. But in South Orange, N.J., where Gross is the village manager, fireworks aren't on the schedule this week.

"The economics of the 2008 budget require difficult decisions to be made," Gross said. For South Orange, he said, that meant cancelling the town's Independence Day fireworks display.

South Orange isn't alone. Skies across the United States will be a little quieter this Independence Day, as the ailing economy and tight budgets force some communities to cancel their fireworks shows.

Gross explained that South Orange will save $30,000 by not having its show, which, in the past, has drawn as many as 5,000 people.

"That $30,000 will be $30,000 we don't raise in taxes, and that'll be a direct savings to the taxpayer," he said.

Jeff Skidmore, the assistant city manager of Weston, Fla., said his city will save $85,000 by axing its show. Skidmore said that city had to look for ways to cut spending after Florida property tax reforms reduced the amount of revenue filling city coffers.

"We looked to make some cuts to wherever it wouldn't hurt the services we provide," Skidmore said.

It's not just municipal belt-tightening that's keeping the lights out.

In Randolph, Mass., usually generous local residents are the ones who pick up the tab for the town's fireworks show through an annual fundraiser organized by the town's local firefighters union.

But the union head told ABC News that this year, he didn't want to ask local residents to contribute.

The townspeople, said Robert Cassford, president of Randolph Firefighters Local 1268, are already grappling with a tax increase and have been asked to contribute to another union fundraiser for scholarships and youth groups.

"You can only go to the well so many times," he said.

A happy ending may yet be in the works for Randolph, where local politicians have pledged to raise funds for a show.

No such luck, however, for Cocoa Beach, Fla. The city's annual July 4 fireworks display is traditionally funded by local businesses. But this year, the city cancelled the show after a major sponsor pulled out. City spokesman Jerry Stansfield said economic conditions were to blame.

The Fire in Fireworks

In California, meanwhile, it's Mother Nature, not the economy, that explains why some communities aren't holding fireworks displays this year.

"The conditions in California, generally, are extremely dry, and the humidities have been very low," said Mike McMurry, the chief of the Scotts Valley Fire Protection District, about 70 miles south of San Francisco.

McMurry said three major fires had recently damaged area homes. The risk that fireworks could start another made it worth it to cancel this year's Scotts Valley display.

McMurry said the cancellation of the official show will dissuade local residents from lighting their own fireworks. Backyard fireworks are illegal in Scotts Valley.

"If the show goes on, folks think that that's an opportunity for them to use their own fireworks," he said. "We're really trying to get the message out that this is the year not to do that."

Trouble Overseas

If fire hazards don't stop backyard pyrotechnics shows this year, the rising costs of fireworks might.

According to the American Pyrotechnics Association, the cost of fireworks supplies produced in China -- which manufactures 98 percent of the amateur fireworks and 80 percent of the professional fireworks used in the United States -- has risen at least 30 percent, thanks to increases in expenses for labor, raw chemicals and paper products.

Julie Heckman, executive director of the APA, said that U.S. retailers will absorb part of the cost increases, but consumers will likely see price hikes of 10 percent to 15 percent.

Further compounding the issue are China's shipping woes. In recent months, shipments from the country have slowed significantly after two Chinese ports were closed to fireworks cargo.

One port was closed in February after a series of warehouse explosions. The following month, officials closed another port after inspectors found professional fireworks there that had wrongly been declared consumer fireworks, Heckman said.

The port closures, according to the association, mean that 10 percent to 15 percent of fireworks supplies won't reach the United States in time for July 4 celebrations.

"It is the most challenging, most difficult year ever," Heckman said.

Heckman added that professional fireworks display companies are coping with the supply shortage by digging into their reserves.

That strategy hasn't worked for everyone. Matt Sutcliffe, chief executive officer of Premier Pyrotechnics, said his Missouri-based company has had to turn away more than 700 new customers. Most, Sutcliffe said, have been able to make other arrangements for their shows, but about 100 haven't.

"Every client has been understanding," he said, but "it doesn't make it any easier to tell a town full of kids that they're not going to get to see a show this year."