The California State Senate Wednesday approved a bill to guarantee any Los Angeles 2024 Olympic Games budget shortfall of up to (USD) $250 million.
The International Olympic Committee (IOC) typically expects that a bidding city, or some relevant government entity, provides a full financial guarantee for the Olympic project. Past U.S.-based bids for the Games have provided partial guarantees or insurance coverage to help fulfill the requirement.
L.A.’s opponents – Budapest, Paris and Rome – are expected to provide the full guarantee required.
The vote passed by a 35 to 1 vote count but still needs approval from the State Assembly.
According to the L.A. Times Senator Andy Vidak was the lone opposing vote and he said the bill represents “messed up” priorities.
He said “this quarter-billion-dollar credit line gives gold to the L.A. City Council so that SoCal politicians can play big shots at the 2024 Olympics.”
But L.A. 2024 officials have defended their budget and the low probability that the contingency fund will be used. The Games plan includes minimal construction and the city has vast experience planning and delivering Games. The Olympic Games held in 1984 were profitable and provided a financial legacy for sport that is still being leveraged today.
They expect that an LA 2024 Games will also be a financial success.
On Thursday, the IOC expressed it’s satisfaction with L.A.’s plans so far and has allowed the California bid, along with its four opponents, to move to phase 2.
The IOC will elect the 2024 Olympic Games host city in September 2017 in Lima, Peru.