Los Angeles city officials are engaged in critical discussions about the financial aspects of hosting the Olympics.
The upcoming 2028 Los Angeles Summer Olympics and Paralympics are expected to attract millions of visitors to various locations, including downtown L.A., the Sepulveda Basin, and the Westside. With the Games fast approaching, the costs and financial responsibilities are under scrutiny.
According to the 2021 agreement between LA28, the private committee managing the Games, and the city, LA28 must reimburse the city for any "enhanced services" — defined as additional city services needed beyond what would normally be provided on a typical day. These services could potentially cost the city hundreds of millions of dollars, with security being one of the biggest expenses.
Rep. Nellie Pou of New Jersey, the top Democrat on the Congressional Task Force for Enhancing Security for Special Events, has expressed concerns about the administration withholding or freezing federal funding appropriated by Congress. She has not received any specifics about the $1 billion allocated for security and planning of the Games. A representative for the Department of Homeland Security declined to answer questions about how the funds will be used.
The city of Los Angeles is in negotiations with LA28 for the use of police, traffic officers, and other employees during the Games. The agreement for "enhanced services" — additional city services needed for the Games — must be agreed upon by October 1, 2025, and will include determining rates, repayment timelines, audit rights, and other processes. LA28's vice president of communications, Jacie Prieto Lopez, stated that security and other planning costs have not been finalized.
LA28 Chief Executive Reynold Hoover has stated that the nonprofit continues to push for federal support for the Games, and the $1 billion recently approved by Congress will help with initial funding requirements for security. Anita Gore, a spokesperson for the California Governor's Office of Emergency Services, expects these funds to be managed by the state through the Homeland Security Grant process.
Civil rights attorney Connie Rice sent a letter to Mayor Karen Bass and other city leaders, questioning the enhanced services agreement and urging the city to take a tough stance to protect taxpayers. The city recently closed a nearly $1-billion budget deficit, in part by slowing police hiring, and faces rising labor costs and diminished revenues from tourism.
The Office of Emergency Services is the "coordination hub" for the Games and is overseeing a statewide task force focused on security, traffic management, and more. Security, trash removal, traffic control, paramedics, and other services will be needed during the 17-day event and the two-week Paralympics.
Separate from enhanced services, the city will bear many associated expenditures that are considered general improvements or related to managing public impact beyond the agreement’s scope. These costs include city department coordination, beautification, fleet operations, and safety services. Some of these costs are already being staffed in preparation for the Games.
Additionally, at least $1 billion in federal funds has been allocated for security, planning, and other costs related to the 2028 Olympics, which may offset some of these expenses. However, it is not yet known what these funds will cover or what will be covered by LA28.
In conclusion, the financial responsibilities for the 2028 Los Angeles Summer Olympics are a complex matter, with both the city and LA28 negotiating the costs of enhanced services. The city will bear many associated expenditures, while the federal government has allocated funds for security and planning. The negotiations and final agreements will significantly impact the city's financial situation, especially considering its current financial challenges.
- The Dodgers and Rams, both based in Los Angeles, California, will likely benefit from the increased tourist activity during the 2028 Summer Olympics and Paralympics in Los Angeles.
- The business sector in Los Angeles, including sports teams like the Dodgers and Rams, might encounter opportunities for revenue growth due to the influx of millions of visitors for the Olympics.
- The upcoming 2028 Los Angeles Summer Olympics and Paralympics could generate additional revenue for the government through increased taxes and business opportunities, helping to alleviate some of the financial challenges currently faced by the city.
