The City of Los Angeles is the lead public guarantor, committing to spend up to $250 million to cover shortfalls. In 2016, the California legislature took action so that the Governor is empowered to negotiate the next $250 million in public backup, but only after the city backup money has been used first. LA 2024 also agreed to purchase a wide range of insurance policies, including natural disaster, terrorism, event cancellation, as well as reduced ticket sales.