LOS ANGELES, CA – Today, Councilwoman Monica Rodriguez introduced a motion to protect Los Angeles taxpayers by formally establishing a “Zero-Cost Principle” for the 2028 Olympic and Paralympic Games, ensuring the City is fully reimbursed for all costs associated with hosting the Games.
“Los Angeles taxpayers should not be asked to subsidize the Games,” said Councilwoman Monica Rodriguez. “With major financial questions still unresolved, we must put enforceable safeguards in place to ensure the City is fully reimbursed for every enhanced resource cost before any surplus funds are declared and used elsewhere, including the establishment of a Legacy Fund. By codifying a Zero-Cost Principle into the City Charter, we are making clear that protecting taxpayers and preserving core City services must come first.”
Councilwoman Rodriguez’s motion instructs the Chief Legislative Analyst, in coordination with the City Administrative Officer and the City Attorney, to prepare language for establishing a new section within the City Charter that codifies a “Zero-Cost Principle for the LA28 Games,” ensuring that the City shall not incur unreimbursed enhanced costs associated with hosting the 2028 Olympic and Paralympic Games and that no Legacy Fund shall be established.
BACKGROUND
The City of Los Angeles is currently negotiating an Enhanced City Resources Master Agreement (ECRMA) with the Los Angeles Organizing Committee for the Olympic and Paralympic Games 2028 (LA28). While the ECRMA was anticipated to be finalized in October 2025, several critical issues remain unresolved, including the establishment of an LA28 Legacy Fund and the definition and allocation of any potential surplus funds.
The City is seeking clear and enforceable language within the ECRMA that would prohibit LA28 from utilizing surplus funds to establish a Legacy Fund unless and until there is full alignment regarding the scope of enhanced City services required for the Games, the total associated costs, and the guaranteed reimbursement of those costs to the City.
Preliminary estimates indicate that security costs alone may exceed $1 billion, exclusive of additional expenses resulting from extraordinary circumstances such as weather-related events, emergencies, or other unforeseen impacts. Notably, LA28 has presented a $7.15 billion budget that does not include security costs, raising significant concerns regarding how “surplus funds” will be defined and whether the City will be fully reimbursed for essential services, including public safety.
This lack of clarity exposes the City to substantial financial risk and undermines the long-standing “zero-cost” principle under which the Games were approved. Given the magnitude and evolving nature of these negotiations, it is imperative that the City Council pursue all available measures to safeguard the City’s fiscal stability and ensure the uninterrupted delivery of core services to residents before, during, and after the Games.
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