Los Angeles officials and Olympic planners are confronting a financing gap that could jeopardize the city’s transportation preparations for the 2028 Games. Economists who study the Olympics say the LA28 Organizing Committee needs at least $2 billion for transit upgrades alone, a sum that currently exceeds the money pledged by state and federal sources.
Expert concerns about a funding shortfall
Andrew Zimbalist, professor emeritus of economics at Smith College, told The Center Square that the shortfall could become a “big trouble” for the city if additional funds are not secured. He explained that the International Olympic Committee (IOC) expects the city to cover $275 million and the state to contribute another $275 million. “If there’s still a deficit after those two contributions, then it all falls on the city of Los Angeles,” Zimbalist said.
Local officials outline current allocations
Governor Gavin Newsom’s budget includes $96.5 million for maintenance projects tied to the Games, with $76 million coming from the general fund and $20.5 million from the Exposition Park Improvement Fund. While this money supports venue upkeep, it falls far short of the $379 million the city requested for transportation projects.
Los Angeles Mayor Karen Bass has promoted a “car‑free” vision for the Olympics, emphasizing that robust transit options are essential for both visitors and residents. Her office reiterated the need for critical funding to deliver a successful Games and lasting infrastructure benefits for Angelenos.
Alternative perspectives on the funding need
Victor Matheson, an economist at the College of the Holy Cross, offered a more optimistic view. He noted that Los Angeles was selected partly because its existing transportation network reduces the need for large‑scale construction. “The whole reason L.A. was chosen is because of its existing transportation and sports infrastructure,” Matheson said.
Matheson also questioned the state’s financial incentive, suggesting that the influx of tourists may not translate into a significant payout for California. He cautioned that the benefits to the state remain unclear.
Legislative response and future outlook
State legislators have allocated only $20 million for transit projects, a fraction of the city’s request. Republican Senator Roger Niello, vice chair of the Senate Budget and Fiscal Review Committee, stopped short of labeling the gap a “savings” but acknowledged that the remaining money is discretionary and could still be addressed through additional state or federal assistance.
Assemblymember David Tangipa (R‑Fresno) argued that the focus should be on lasting transportation improvements rather than a purely “car‑free” Olympics. He highlighted the city’s historic traffic‑control system, first used in the 1984 Games, as a model for modern upgrades that will serve residents long after the event.
Potential impact on residents
If the funding gap persists, economists warn that Los Angeles taxpayers could bear the burden. The shortfall could lead to increased congestion, longer commute times, and higher costs for local businesses that rely on smooth traffic flow during the Games.
City officials have reached out to the White House for comment but have not received a response at the time of publication.
What’s next?
Stakeholders expect continued negotiations among the organizing committee, state lawmakers, and federal agencies. The outcome will shape not only the success of the 2028 Olympics but also the quality of transportation infrastructure that Angelenos will use for decades.
Original reporting: KTBS 3 (Shreveport) — read the source article.
