Groups must pay for their own events
When a local area group hosts an event or festival, who pays for it? The cost is covered by the local group and then money is recouped from the vendors and those attending, usually with the hopes of making a profit.
The government, local or state, doesn’t foot the bill.
When a larger event is put on to bring in tourist dollars to a larger area, then I believe that whoever is sponsoring it should cover the expense and then recoup the costs, hopefully with a profit, from vendors and those who financially benefited from the event, such as hotels, restaurants, retail stores, etc.
Those who profit from an event should be the ones who pay the entire cost of the event.