Los Angeles city leaders are at a critical juncture as they prepare for the upcoming 2028 Summer Olympics, with the potential for hundreds of millions of taxpayer dollars on the line.
Negotiations are currently underway between the city and LA28, the private committee responsible for overseeing the Games, primarily concerning the provision of city services such as police and traffic officers during the events.
With millions of visitors expected to descend upon downtown Los Angeles, the Sepulveda Basin, and the Westside, the city anticipates a significant need for enhanced services such as security, trash removal, traffic control, and emergency medical services during the 17-day Olympics and the two-week Paralympics that will follow.
As per the 2021 agreement between LA28 and the city, LA28 is required to reimburse Los Angeles for any services that exceed what the city would normally provide.
The two entities face an October 1, 2025, deadline to agree on the definition of “enhanced services” — a term that could encompass a wide range of city services specifically necessitated by the Games, in addition to the standard provisions made on a typical day.
These discussions will also encompass critical elements such as rates, repayment timelines, and audit rights, with the city’s already precarious financial state adding urgency to the negotiations.
LA28 has touted the Games as a “no cost” event for the city, but the definition of “enhanced services” could lead to substantial expenses for a city grappling with a nearly $1 billion budget deficit.
The largest financial burden is expected to be security-related costs, as the Los Angeles Police Department (LAPD) will collaborate with various local, state, and federal agencies to ensure the safety of athletes and spectators alike.
Any overtime expenses for police officers, among other significant costs, will weigh heavily on a city government that has recently curtailed police hiring to address its budget shortfall.
Compounding the issue, the city must deal with increasing labor costs and a decrease in tourism revenue.
On a federal level, President Donald Trump’s recently passed Big Beautiful Bill includes $1 billion earmarked for security and planning associated with the Games.
Nevertheless, details regarding which specific expenses these funds will cover are still unclear, raising questions about forthcoming financial responsibilities for the city.
Civil rights attorney Connie Rice expressed profound concerns in a six-page letter, dated July 17, directed to Mayor Karen Bass and other city leaders. She posed critical queries about the enhanced services agreement, arguing for the necessity of a robust protective stance for the city.
Rice pointed out that city staffers had contacted her, voicing apprehensions that the agreement might not sufficiently shield taxpayers from financial burdens.
“Los Angeles faces multiple fiscal hazards that many current leaders negotiating this and other Olympics agreements, will not be around to face,” Rice wrote.
She emphasized that the city cannot afford a potential $1.5 billion loss in 2028 due to inadequate protection of taxpayer interests in the ongoing negotiations.
Among the specific issues Rice raised was whether LA28 and the city had reached consensus on the definition of venue “footprints,” which outline the perimeters surrounding sporting events. Rice indicated that these footprints could vary significantly based on definitions influenced by factors such as blast radii or security perimeters.
Additionally, she questioned why LA28 had not provided upfront payments for costs via an escrow account, alongside inquiries into whether the committee had shared relevant budget information related to security, transit, and sanitation services with the city.
In an interview following the release of her letter, Rice underscored her desire for the Games to indeed remain “no cost” for the city.
Paul Krekorian, head of Mayor Bass’ major events office, along with a representative from LA28, avoided direct commentary on Rice’s letter.
“The City and LA28 have been collaborating for years to ensure that all Angelenos benefit from the Games for decades to come,” Krekorian stated.
He affirmed that while the agreement remains under negotiation, there are expectations that LA28 will successfully secure funding for the Games.
Historically, the city routinely allocates police officers and traffic personnel for major events, such as Dodgers games and award shows. For instance, the Rams reimbursed the city $1.5 million for resources utilized during their Super Bowl parade in 2022.
Recently, Szabo’s office released a document outlining potential liabilities the city may face, specifically noting approximately $1 billion in security expenses that would need to be covered by the city if LA28 or federal funds do not alleviate these costs.
Jacie Prieto Lopez, LA28’s vice president of communications, stated that they have yet to finalize specific costs for security and other related planning initiatives.
Rice’s inquiry into whether LA28 would cover police costs received no direct response from Lou Prieto Lopez, who mentioned the recent appropriation of $1 billion by Congress being beneficial but didn’t clarify the association of those funds with LAPD expenses.
“We are grateful that the Administration and Congress recently appropriated $1 billion in security funding and we will continue to work with our partners at the federal, state and local levels, including the City of LA, to ensure a safe, secure and successful Games,” Prieto Lopez wrote in an email.
Determining how the $1 billion allocated from the Big Beautiful Bill will be distributed will ultimately fall to the Federal Emergency Management Agency, focusing primarily on preventing terrorism and potential threats during the Olympics.
Anita Gore, a spokesperson from the California Governor’s Office of Emergency Services, indicated that funding would be administered by the state through the Homeland Security Grant program, which acts as the central coordination hub for security, traffic management, and other operational aspects of the Games.
During a recent Sacramento hearing, LA28 Chief Executive Reynold Hoover reiterated that the nonprofit organization remains actively pursuing federal assistance to cover expenses related to the Games.
“The $1 billion recently approved by Congress will help us with that initial funding requirements for security,” Hoover stated in front of a Senate subcommittee in June.
He further emphasized LA28’s ongoing goal to secure full reimbursement from the federal government for public agencies tasked with providing critical security during the event.
Questions regarding how the Department of Homeland Security plans to utilize the $1 billion for security were met with no responses from its representatives.
Given his history of unpredictable actions and past criticisms regarding California, city leaders find it challenging to determine how President Donald Trump’s administration will manage the financial aspects of the Games.
Rep. Nellie Pou, a leading Democrat on the Congressional Task Force for Enhancing Security for Special Events, voiced similar concerns, highlighting a lack of specifics regarding the appropriation of the $1 billion.
“This administration has withheld and frozen other federal funding appropriated by Congress, so we cannot simply assume that World Cup or Olympic security funding will make it to our communities,” she noted.
When approached about Pou’s statements, Krekorian assured that the city maintains direct communication with both state and federal partners, in addition to LA28, regarding the allocation and use of these funds.
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