August 31, 1999
The SLOC's finance committee today okayed a $1.3-billion budget for the Games.
They say that leaves a little less than $180-million left to raise to break even.
But local governments are concerned about getting repaid the $59 million they invested to build Olympic facilities a decade ago.
News Specialist John Daley has details about that.
Back in 1989, cities and towns pledged 1/64th of a cent of their local option sales and use tax--as a commitment to help construct venues for the Olympics, like ski jumps, the bobsled track and the speed skating oval.
But in recent months, the Olympic bribery scandal has hampered fundraising efforts.
Olympic organizers now say they still plan to repay that money, but that there's "no guarantee."
For local officials, that is raising a red flag.
MITT ROMNEY/SLOC PRESIDENT: "WE INTEND TO PAY ALL OF OUR OBLIGATIONS. OF COURSE WE HAVE $179 MILLION IN NEW SPONSOR MONEY TO RAISE. WE'RE WORKING HARD TO DO THAT. I DON'T WANT TO THINK ABOUT WHAT WOULD HAPPEN IF WE DON'T DO THAT. WE WANT TO HOST FIRST-CLASS GAMES AND REPAY OUR OBLIGATIONS."
KEN BULLOCK/UTAH LEAGUE OF CITIES AND TOWNS: "BY NOT REPAYING THE $59 MILLION, THEY ARE LEAVING US IN DEBT. IT'S AN OBLIGATION THAT SLOC HAS TO THE CITIZENS AND THE COMMUNITIES OF THIS STATE, REGARDLESS OR HOW YOU WANT TO COUCH IT, THIS IS A CONTRACTURAL OBLIGATION THAT THEY HAVE WITH US. IF THEY DON'T PAY US BACK, NO MATTER WHAT THE SEMANTICS ARE, THEY ARE LEAVING US IN THE HOLE, IN THE RED, IN DEBT."
The SLOC is contracturally obligated to pay a total of $139 million, including payments for using facilities at the University of Utah.
Of course, if organizers raise all the money they need this point is mute.
Mitt Romney is optimistic--he says they anticipate being able to sign up one or two sponsors a month over the next two years.
