I’ve been critical of the LA City Council for years, so I don’t expect a lot from them. But even I was stunned by their vote to approve the LA Convention Center expansion in September. The Council is not known for fiscal responsibility. You may recall that they’ve been struggling to deal with a $1 billion deficit during the current fiscal year. So you’d think the councilmembers would be a little hesitant to plunge the city even further into debt. But on September 19, the LA City Council approved the expansion in an 11 to 2 vote, with two absent. Mayor Bass signed off on it a few days later.
Supporters of the Convention Center expansion promoted it as a great idea, and a crucial step in attracting events to Downtown LA. No one disputes that the Convention Center needed repairs and upgrades, and the expansion could provide benefits. But the cost of the project will bury the City of LA in debt for decades. Don’t take my word for it. Read what LA City Controller Kenneth Mejia had to say about the impacts it will have on the city’s budget….
The City of Los Angeles is currently contemplating a $2.7 billion expansion and modernization of the Convention Center, which will end up costing taxpayers $5.9 billion with borrowing and other costs included, of which $5.45 billion will be paid for by the General Fund. If this plan goes through, the City is projected to need an additional average of $116 million from the General Fund each year for the next 28 years starting in FY2029. $116 million is the equivalent of nearly 1,000 City jobs.…