Taxpayers Shouldn't Be Left 'Holding The Bag' On Olympic Costs: LA Councilwoman

LOS ANGELES, CA — City Councilwoman Monica Rodriguez called Wednesday for an audit the LA28 organizing committee in what she called an effort to protect Los Angeles from potential fiscal harm related to hosting the 2028 Olympic and Paralympic Games.

Rodriguez has raised concerns about city taxpayers being left "holding the bag" on Olympic costs. While the Los Angeles Organizing Committee for the 2028 Olympic and Paralympic Games has a $7.1 billion projected budget, the city is expected to cover the first $270 million in potential losses.

California legislators agreed to have taxpayers statewide cover the next $270 million in losses, but anything after would fall on L.A. taxpayers.

The federal government has agreed to provide $1 billion for security- related costs, and has been asked to contribute $2 billion for Games-specific transportation initiatives.

Rodriguez, however, introduced three motions aimed at establishing fiscal safeguards to protect L.A. taxpayers ahead of the 2028 Games.

She previously introduced a motion calling on her colleagues and city attorneys to enshrine a so-called "Zero-Cost Principle" in the City Charter to ensure L.A. is fully reimbursed for all costs associated with hosting the Games.

The councilwoman introduced a second motion to establish a 10% tax on the sale of LA28 tickets beginning Jan. 1, 2027, while the third motion calls for the organizing committee to finance an independent third-party audit of its expenditures and revenues prior to its dissolution.

If approved, the proposed ticket tax would be placed on the November ballot for L.A. voters to decide.

"Los Angeles twice set the gold standard as an Olympic host city by protecting taxpayers while delivering a financially successful Games," Rodriguez said in a statement.

"To ensure the protection of taxpayers, my motions call for a `Zero- Cost Principle' to go before voters, a full independent audit of LA28 to ensure public resources are properly accounted for, and a ticket tax modeled after the 1984 Olympics to provide dedicated revenue safeguards that protect city services so they are not impacted by the financial demands associated with hosting the Games," Rodriguez added.

A representative for LA28 did not immediately respond to a request for comment. LA28 officials have maintained they are raising revenue and garnering sponsorships to fund the Games.

Officials have also touted ticket sales as an indicator that they are on track to meet financial goals.

LA28 is facing mounting pressure from city leaders to finalize cost estimates related to hosting the Olympics.

On May 5, the council directed city staff to finalize and present within 14 days an agreement for payment. The "Enhanced City Resources Master Agreement" is already seven months late, as it was expected to be completed by October 1, 2025.

City officials said there have been disagreements over security costs.

Los Angeles Police Department officials previously stated the agency would incur $1.15 billion in personnel costs during the Games. The memo broke down the cost in three parts: Games operations, which corresponds to $732.2 million for direct deployment of LAPD and outside law enforcement; citywide critical core policing at $290.4 million; and other LAPD critical support operations at $128.7 million.

The LAPD said the department can supply only about one-third of peak Games staffing demand, with the remaining two-thirds fulfilled by outside law enforcement at premium rates.

Overtime accounts for approximately $457.5 million, or about 40%, of the total LAPD cost. Of that, $156.2 million is direct LAPD overtime and $301.3 million is outside law enforcement labor priced at the same overtime shift rate, according to the memo.

LAPD officials noted the estimate is not all-inclusive, since it only covers personnel and supporting outside labor. It does not include equipment, vehicles, technology, infrastructure, training and planning above the current baseline.

By Jose Herrera, City News Service