Los Angeles City Council members approved an agreement last week that could leave city taxpayers covering unlimited costs if the 2028 Olympics run over budget. The 10-4 vote advanced the Enhanced City Resources Master Agreement, or ECRMA, which still needs Mayor Karen Bass’ signature to take effect.
The deal extends the financial framework first used when Los Angeles won the Games in 2017 and makes the city the final financial guarantor. Under the current structure, the LA28 organizing committee would cover losses up to $600 million, and the state of California would cover $270 million after that. Any additional overruns would fall to the city’s general fund, which pays for basic services such as police, parks and sanitation.
City Controller Kenneth Mejia sharply criticized the arrangement on X, saying, “Something SHADY is happening at City Hall,” and calling the deal “financially irresponsible.” Councilmember Nithya Raman, one of four members who opposed the agreement, offered amendments to add more transparency and protection for the city, but they failed.
Her proposed changes would have required LA28 to repay the city first if the Games generated a surplus, given the city audit authority during the Olympics and capped the city’s liability. Raman said the city would not get audit power until after the Games, once the money had already been spent and state or federal aid might be sought. The biggest unresolved concern is security costs, which remain a major issue in the overall $7.1 billion budget for the Games.
