California Governor Gavin Newsom, Janet Evans, LA28, Los Angeles Mayor Karen Bass, Delaney Schnell and LA28 Chairman and President Casey Wasserman appeared on August 12, 2024 in Los Angeles, California,
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Los Angeles achieved a rare feat in 1984: the city profited at the Summer Olympics. It looks like this may not be easy in 2028. This could be in a bad time in the city.
“Financially, the City of Los Angeles, we’re in trouble,” Director Kenneth Mejia wrote in a recent letter to Mayor Karen Bass and the City Council. “Smaller income and higher spending total, the estimated shortfall for the fiscal year is expected to be $140 million, and an additional $73 million will be reduced next year.
Los Angeles is “Overspension” $300 millionMeija wrote. One of the highest city budget officials recently estimated Budget shortage could reach $1 billion In the next fiscal year. Last week, state lawmakers asked for another $1.9 billion In obtaining $2.5 billion in funding to help January wildfires recover from January’s wildfires.
LA28 is a private nonprofit company that organizes the 2028 game, with one $6.9 billion budget Sponsored by the company, a licensing agreement and a significant contribution from the International Olympic Committee. The budget covers costs such as renting a sports arena, staff costs, and housing athletes.
But if the Olympic budget math doesn’t add up exactly as planned, taxpayers could be paid a portion of the bill, and Los Angeles and its Olympic committees would be aware of the risks of exceeding cost estimates. In 2019, LA28’s budget has increased Costs US$1.36 billion. if LA28’s budget Still proven not enough, the city of Los Angeles will be responsible for the next $270 million. After that, the California government will be responsible for the next $270 million – the next $270 million is once again a financial burden for Los Angeles.
The Olympic boarding city has a long history of financial failure
if Recent History Any indicator can be concerned that the 2028 Summer Olympics will exceed the budget. During the last 60 years of hosting the city, there was little profitable or continuous budget.
The budget exceeded 90% after spending more than $5 billion in Sydney in Australia. The 2004 Athens Olympics eventually exceeded the budget by about 50% to $3 billion due to overspending and growing debt. this 2016 Summer Olympics Rio de Janeiro reportedly costs $20 billion. The Olympics are so unprofitable that London was judged to be successful even when it broke down at the 2012 Summer Olympics.
Miles Osgood, a professor at Stanford University and an Olympic researcher, said Los Angeles organizers have developed responsible budget plans since the course began in 1984, and the city positioned the city’s financial advantage as the Olympics’ financial advantage compared to other recent host countries. As in 1984, Los Angeles planned to use existing sites and structures, which saved costs associated with new construction. Use existing venues Expect to save More than $150 million.
But it’s over $200 million in profit Los Angeles had the last Olympic Games held in 1984, which was very different from today. Specifically, the game is much larger in size. Los Angeles will host 36 Olympics in 2028, not 21 Sports. In 1984, there 221 events and 6,829 athletes.In 2028, there will be There are 800 activities for 15,000 athletes. Osgood said the larger number multiplied by the associated costs (such as safety, transportation, staff, Olympic Village rooms) “from these basic characters the mushrooms are among the mushrooms”.
Even before wildfires introduced unexpected financial and infrastructure challenges to Los Angeles, the city was home to strong anti-Olympic sentiment. Osgood noted that Los Angeles is at the heart of the “Nolympics” movement, sports Among other things, focus on the housing crisis and the lack of local democracy in the Olympics’ plans. It seeks to reveal the bad deals the host has always reached when welcoming the Olympics, and the organization has been promoting the 2028 Olympics since the wildfires.
Despite criticism, Los Angeles is confident that it will judge the Olympics as a success. Paul Krekorian, President of Los Angeles City Council, recently Tell the New York Times“I believe the 2028 game will also benefit generations in Los Angeles.”
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For many residents who are still making up for their lives after family losses, the typical spirit associated with playing the host of the Olympics may not capture their mood in traditional pride. “In 2028, when the entire community is still clearing ashes, the Olympic flame will not be a welcome symbol,” Osgood said. He added: “You can easily imagine the Olympic slogan in Los Angeles, ‘Follow the sun,’ and there will be a welcome exchange as protesters call.”
Wildfire displacement in mid-January 18,000 structures destroyed.
It is estimated that the recent wildfire will cost About $40 billion In the insured loss.
From an infrastructure perspective, wildfires should not be a problem. None of the Olympic venues in 2028 were damaged by fire. The University of California, Los Angeles (UCLA) emerged unscathed to become an Olympic rural housing athlete. Experts say this may still be a place for many athletes participating in the 2028 race.
But Mingya recently said that given the wildfires, the city’s financial pressure will not come at a worse time. “Eighteen months ago, we had gone from a record general fund reserve to the brink of needing to formally declare a ‘fiscal emergency’,” he said. “This has increased pressure on the budget, in addition to the responsibility to prepare for the Olympics and Paralympics in 2028.”
Wildfires are not uncommon in California, but University of Utah professor Matthew Burbank said the scale of damage to home, business and public infrastructure is much higher than what is usually experienced in the Los Angeles area.
It may take several years for Los Angeles to rebuild, but Burbank said he doesn’t want wildfires to have a direct impact on Olympic plans or any funds currently designated as Olympics redirecting from Olympics to wildfire relief. “It is more likely that the City’s cost overbudget approach is to hope that they won’t happen, and if they do, then the City will have to figure out how to pay for these costs,” he said.
But he added that there is no denying the overall impact of years of wildfire reconstruction on public finances.
“It could have lasting impacts on state and local government budgets in 2028 and beyond,” he said.
Disclosure: NebraskaDailyNews parents NBCUniversal owns NBC Sports and NBC Olympics. The NBC Olympics are the American broadcast rights holders for the all-summer and winter Olympics by 2032.
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