Los Angeles pulled off a rare feat in 1984: the city turned a profit on the Summer Olympics. It’s looking like that may not be easy in 2028. And that could come at a bad time for the city.
Los Angeles pulled off a rare feat in 1984: the city turned a profit on the Summer Olympics. It’s looking like that may not be easy in 2028. And that could come at a bad time for the city.
“The city of L.A., financially, we are in trouble,” Controller Kenneth Mejia wrote in a recent letter to Mayor Karen Bass and the City Council. Less revenue and higher spending adds up to a projected $140 million shortfall for the current fiscal year, and an additional decrease of $73 million next year.
Los Angeles is “overspending” by $300 million, Meija wrote. A top city budget official recently estimated that the budget shortfall could reach $1 billion in its next fiscal year. Last week, state lawmakers requested another $1.9 billion in funding, after receiving $2.5 billion, to help with the city’s recovery efforts from the January wildfires. Read more about LA’s recovery and the budget crisis on this official site.
LA28, the private, non-profit company organizing the 2028 Games, has a $6.9 billion budget funded by corporate sponsorships, licensing agreements, and a significant contribution from the International Olympic Committee. The budget covers expenses like renting athletic arenas, personnel costs, as well as housing athletes.
But if the Olympics budget math doesn’t add up exactly as planned, taxpayers could be left paying part of the bill, and LA and its Olympics committee are aware of the risks of overrunning cost estimates. In 2019, LA28′s budget was increased by $1.36 billion. If LA28′s budget still doesn’t prove to be enough, the City of Los Angeles will be responsible for the next $270 million in funding. After that, California’s state government will be responsible for the next $270 million — with the next $270 million after that again becoming LA’s financial burden.
Read More: About Sports
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