The Los Angeles controller has warned that city taxpayers will be on the hook for cost overruns for the 2028 Olympic Games. In past cities, that extra cost has been as much as several billion dollars.
In a video posted Wednesday on X, Controller Kenneth Mejia said that since the city became the financial backstop in 2017, it has missed key opportunities to implement stronger taxpayer protections, financial transparency and accountability. Examples include a 2021 vote on the games agreement and this week’s vote on the Enhanced City Resources and Monitoring Agreement.
“We could have put in some protections to protect the city and provide better transparency and accountability on what LA 2028 is going to spend their money on,” said Mejia. “If they go over budget, then the city is on the hook, y’all.”
Many Olympic host cities have experienced cost overruns. For example, the Montreal 1976 games put in a bid for $360 million and had a final outturn cost of $2.9 billion. That’s an overrun of 720%.
The Rio de Janeiro 2016 games had an overrun of 352%, followed by the Lake Placid 1980 games at 324% and the Tokyo 2020 games at 128%.
“As your controller, we’re going to keep fighting no matter what, to ensure that you know where that money is going, because we’re going to use every tool in our toolbox and our charter authority to see the finances for LA 2028,” said Mejia, whose office did not respond to The Center Square’s request for interview or comment.
Susan Shelley, vice president of communications at the Howard Jarvis Taxpayers Association, said Mejia is correct that the city of Los Angeles “recklessly agreed to be the ultimate financial backstop” when it signed the Host City Agreement for the 2028 Olympics.
“A state law established that the city is responsible for the first $270 million of cost overruns, and the state will cover the next $270 million of cost overruns,” Shelley told The Center Square. “After that, any and all cost overruns are the responsibility of the taxpayers of Los Angeles, if high taxes haven’t already chased everyone out of the city.”