On Wednesday, the Los Angeles City Council finalized an agreement with the LA28 committee for a $270 million contingency fund to ensure the city is covered for potential losses from the 2028 Olympic Games.
According to the Los Angeles Times, the LA28 committee has a contingency fund to cover the first $330 million of losses and with the city council deal, L.A. is covered for the next $270 million. If the losses mount, the next $270 million would be paid by the city.
“That would be the first line of defense protecting the city,” City Administrative Officer Matt Szabo told councilmembers. “Then if it's even more than that, then that is when the city would be on the hook for the next $270 million. They would have to fall $600 million short of their seven plus billion dollars budget for the city to be in jeopardy, and that's the big concern.”
Szabo added that the “the worst scenario would be where the games end and the city has to write a check from its general fund to cover deficits from LA28.”
“We are providing you today as many protections as we can, given the reality that if it is not financially successful, it does fall onto us,” he continued.
Some council members expressed concerns regarding whether the Trump Administration will actually follow through with a billion dollars of reimbursement funds to cover security, like police services and planning costs for the Olympics.
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