Olympics guarantee signed by Schwarzenegger

Gov. Arnold Schwarzenegger today signed legislation guaranteeing up to $250 million in taxpayer money if the 2016 Olympic come to Los Angeles and happen to lose money. A decision is expected soon over whether Chicago or Los Angeles should be recommended to the international Olympics committee as the U.S. entry for 2016.

Assembly Speaker Fabian Nunez of Los Angeles, who sponsored the legislation, said the 1984 Summer Olympics held in Los Angeles made $236 million. "Cost overruns for Games are typically associated with the construction of infrastructure such as stadiums and athlete housing. Most of those types of facilities already exist and will not have to be built," his office said.

(Photo: David McNew/Getty Images)