LOS ANGELES — Los Angeles' bid to host the 2024 Olympic Games poses little financial risk for the city or the state, according to the state legislative analyst's office.
The city in September was named a finalist along with Rome, Paris and Budapest to host the Games. The winner will be announced in September 2017.
The state's legislative analyst office likes the plan, because it poses little financial risk for the state or the city, according to a Nov. 10
"The low-risk financial strategy of the bid greatly reduces the risk that the southern California economy will bear large, long-term taxpayer expenses related to the Games," the LAO's report said.
Though hosting the games would give the city's economy a short-term boost, it wouldn't create any long-term economic benefit. Since costs have been lowered primarily by using existing venues, the long-term economic impact would be neutral, the LAO said.
"Short-term economic gains from the Games likely would generate additional state and local tax revenues that would offset some or all public costs," the LAO wrote.
The IOC would contribute $1.7 billion in "cash and services" to the winning organizing committee.
In coming months, Gov. Jerry Brown will be negotiating a contract under the terms of Senate Bill 1465 that restricts the amount the state would contribute to $250 million to cover any financial deficits.
The International Olympic Committee has recently put in place mechanisms to favor cities that propose low-cost, low-risk plans, which favors L.A., the LAO wrote.
L.A. benefits from this approach, because all of its planned venues already exist or are on track to be completed before 2024; and the LAO said the plan needs no major infrastructure to proceed.
The LAO did advise that the Legislature develop an oversight framework and appoint one or more committees to oversee the governor's contract negotiations. That effort would come on top of the more intensive oversight expected from Los Angeles leaders.
California has hosted two summer Games in Los Angeles, in 1932 and 1980, and one winter Games in Squaw Valley in 1960.
