Los Angeles City leaders could potentially stagnate taxpayer dollars ahead of the 2028 Summer Olympics.
They are in negotiations with LA28, a private committee that oversees the game, to use city police, traffic officers and other employees during the Olympics and Paralympics.
When the Olympics begin in July 2028, millions of visitors are expected to pour into LA, the Sepulveda Basin and downtown Westside. Security, garbage removal, traffic control, paramedics and more will be required for the 17-day event and the next month’s two-week Paralympics.
Under the 2021 game agreement between LA28 and the city, LA28 will need to refund the city for services beyond what the city offers on a regular day. The two parties must agree to “enhanced services” (additional city services required for the game) by October 1, 2025 and determine interest rates, repayment timelines, audit rights and other processes beyond their normal levels.
LA28 billed the game as a “no cost” event in the city. Depending on how “enhanced services” are defined, cities in unstable financial positions can incur significant costs. One of the biggest costs is security, hosts from LAPD and other local, state and federal agencies, working together to keep athletes and audiences safe.
Overtime at Los Angeles police officers and other major expenses will be felt sharply by the city government, which recently shut down a budget deficit of around $1 billion by slowing down police employment. The city continues to face rising labor costs and declining revenues from tourism.
At the same time, President Trump’s big, beautiful bill recently passed in Congress includes $1 billion for the security and planning of the game. However, what those funds cover, and what LA28 is not yet known.
Against the backdrop, civil rights lawyer Connie Rice sent a 6-page letter dated July 17 to Mayor Karen Bass and other city leaders, asking questions about the strengthened service contract and urging the city to take a tough stance. Rice said city officials reached out to her because they were worried that the agreement would not properly protect the city.
“Los Angeles faces multiple financial risks, with many current leaders negotiating this and other Olympic agreements, but they don’t,” Rice wrote. “The city cannot afford to pay another $1.5 billion hit in 2028, as city officials inadequately protected taxpayers.”
Rice’s letter asks if LA28 and the city resolved differences in the definition of venue “footprint” or boundaries regarding sporting events. The footprint changes depending on whether it is defined by blast radius, security perimeters, or other factors.
The letter questioned why LA28 was not using money in escrow to pay the city for costs, and asked whether LA28 provided security, transportation and sanitation budgets to the city.
In an interview, Rice said she wanted to ensure that the game is actually “cost-free.”
Paul Clecorian, who heads Mayor Karen Bass’s main event office, and representatives from LA28, refused to directly address Rice’s letter.
“The city and LA28 have worked together for years to ensure that all Angelenos will benefit from the game over the next decades,” Krecorian said. “As long as it is [agreement] Currently under negotiation. LA28 is fully hoping to succeed in its fundraising efforts to deliver the game. ”
The city offers police and traffic officers on a daily basis for major events such as the Dodgers Games and the Grammy Awards. In 2022, the Rams reimbursed $1.5 million for the resources provided for the team’s Super Bowl Parade, according to city administrator Matt Sabo.
Last month, Szabo’s office released a document on the city’s investor website outlining the potential debt the city faces, including those related to the 2028 game. The document noted that the city would have to pay about $1 billion in security costs if it is not covered by LA28 or the federal government.
Jacie Prieto Lopez, LA28’s Vice President of Communications, told The Times that security or other planning costs have not been finalized.
Rice’s letter questioned whether LA28 would cover the costs of security. Prieto Lopez did not respond directly when asked in the Times whether LA28 would cover the costs of LAPD.
“We are grateful for the administration and council’s recent allocation of $1 billion in security funds and will work with partners at the federal, state and local levels, including the City of LA to ensure a safe, secure and successful game,” Prieto Lopez said in an email.
How Big Beautiful Bill’s billion dollars are distributed will be determined by the Federal Emergency Management Agency through a Homeland Security Grants Program focused on preventing terrorism and other threats.
Anita Gore, a spokesman for the California Governor’s Office of Emergency Services, told the Times he hopes that these funds will be managed by the state through the homeland security grant process.
The Emergency Services Department is the “coordinating hub” for the game and oversees a statewide task force focused on security, traffic management and more, Gore said.
During a recent hearing in Sacramento, LA28 CEO Reynold Hoover said the nonprofit continues to promote federal support for the game. He said the billion dollars recently approved by Congress would “support initial financial requirements for security.”
Hoover told a Senate subcommittee in June that LA28 was asking the federal government to fully refund public agencies that provide critical security in the game.
Representatives from the Department of Homeland Security declined to answer questions about how $1 billion will be used.
Trump’s mercury nature and past attacks on California make it difficult for some city leaders to assess how his administration handles the funds for the game.
Rep. Nelly Pooh, New Jersey, is a top Democrat on the Congressional Task Force to enhance security for special events, held a hearing last month on preparations for the World Cup and Olympics. She told the Times that she had not received any details of $1 billion.
“This administration has withheld other federal funds allocated by Congress and freezes, so we can’t simply assume that World Cup and Olympic security funds will reach our community,” she said.
When asked about Pou’s concerns, Krekorian said the city is “in direct communication with state and federal partners and LA28 regarding the allocation of these funds.”
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