right now I have two separate type paths- I want type to wrap in continuous circle but still need the calico skies on top and sparkling company on bottom- basically want the type closer together so it appears to be constant circle. How do i extend the bottom circle shape to bring this type closer to top without changing the arc?
The answer below is specific to the spacing issues demonstrated by the OP, here is a more general tutorial if you are just getting started with typing along a path in Illustrator.
As mentioned above, it seems your paths are already positioned just fine and have the curve that you need. So, in order to position the text as you would like, you should worry about the letter spacing or tracking.
To amend this in Illustrator, you can use the character panel. This can usually be accessed by hitting CMD/CTRL + D for the keyboard shortcut. Alternatively, you can select where it says 'character' in the top navigation bar when you have the type tool (T) selected. (If both these methods were to fail you could always go to the Window Tab and select Type > Character).
This will toggle the box below that shows a range of tracking, leading and kerning options amongst other things.
With your text selected, increase the tracking (second box on the right) to get more space between your letters. The character panel works just like this in both Photoshop and Indesign too!
Hope this helps!
P.S here's a kerning game if it was something you are interested in :)