The Los Angeles 2028 organizing committee promises the biggest Games in history. It can rely on a solid financial foundation thanks to the more than four million tickets already sold and recently established partnerships with JPMorgan Chase, Korn Ferry, and Intuit. However, the city of Los Angeles is moving forward with less room to maneuver, as budgetary issues have been occupying the city council for weeks.
"Ensure that the City is fully reimbursed."
Last year, Mayor Karen Bass considered more than a thousand layoffs to balance the budget before a scaled-back version was adopted, including cuts for the city's police and fire departments. The situation remains tense this year, with implications for the upcoming Olympic and Paralympic Games. City Attorney Hydee Feldstein Soto and Councilwoman Monica Rodriguez have requested assurances from LA28 regarding city spending, to ensure that taxpayers will not be penalized and that funding for essential city services will not be affected.
Marqueece Harris-Dawson, president of the City Council, also put pressure on the organizing committee with several motions. One of them states: Hosting the 2028 Games will require significant municipal resources, particularly in public safety, transportation, sanitation, and other essential services that extend beyond the City's regular operations. It is crucial to ensure the City is fully reimbursed for these increased municipal resources, including costs incurred during the organization of the Games and infrastructure improvements requested by LA28 beyond what the City has already budgeted for, in order to protect the City's general fund and maintain fiscal responsibility. »
« It is essential that LA28 fulfills all its financial and contractual obligations to the Citycontinues the text. Given the ongoing uncertainties regarding the City's exposure to significant costs related to hosting the Games, it is imperative that the City establish clear and enforceable conditions guaranteeing full cost recovery, providing for advance payment of anticipated expenses, and prioritizing the City's financial protections. "This motion was actually examined by the city council last Tuesday."
An agreement signed by the end of the month?
The verdict? A unanimous vote of 14 to 0 to adopt it. The text instructs municipal services to finalize an agreement with LA28 within 14 days regarding the payment of expenses incurred by the city in connection with the Games. It explicitly states that LA28 must reimburse all municipal resources exceeding the scope of the city's normal operations, and that a " A payment schedule will be established to provide the City with an advance on the estimated costs. This should reassure the city council, still reeling from the recent hearing of representatives of the Los Angeles police on April 29.
They asserted that the federal allocation of one billion dollars would be insufficient to cover the security costs of the Games. Los Angeles Police Chief Jim McDonnell sounded the alarm: We need additional funding for specialized technology and equipment to prepare for the Olympics. While funds are allocated for the purchase of vehicles, no funding has been provided for the technological equipment to be installed in those vehicles. (…) Furthermore, the $1 billion [federal] budget is earmarked for all agencies involved in the Olympics, not just the LAPD, and will primarily be used for police officers' overtime. LA28 confirms that they have no budget for policing or public safety, and while there is a security budget, it does not cover law enforcement. "The City may therefore be forced to open its checkbook. Again."
