John Furlong, head of the 2010 Olympic Organizing Committee, recently revealed that the venue construction budget is heading towards a massive blowout! The Canadian Taxpayers Federation (CTF) has been sounding that alarm bell since the Olympic bid was first put together. Furlong estimates that construction budgets are short by at least 40-50% and explains that part of the reason for the increase is that the original numbers were done in 2002 dollars and most construction will be done between now and 2008.

The current construction boom and subsequent skills and materials shortage was anything but unexpected. In fact, when budgeting for an event seven to eight years down the road, the most prudent practice would be to set aside a sizable contingency fund for unforeseen budget pressures.

However, the bid budget put together by the Olympic Committee included a measly $139 million contingency allowance. Why so low Even a modest estimate would see inflation eat up over $40 million of the contingency fund in the eight years between the budget and the Games, leaving very little fiscal room for organizers. British Columbia's auditor-general also warned early on that the 2010 Olympic contingency fund was insufficient.

But here's the kicker: in order to secure the Vancouver Bid the provincial government signed a blank cheque guaranteeing BC taxpayers would cover any revenue short-falls or expenditure overruns. Such a blanket protection hardly instills the fiscal discipline necessary to stay on budget. And so, with nearly five years to go, we are already hearing hints that more of our dollars will be sucked up by the 12-day event.

Furlong's news is certainly disconcerting but what is even more egregious is how he delivered it. It wasn't reported to us taxpayers in a report to the legislature. No, it was delivered to the Vancouver Board of Trade. No doubt, the Board has a big stake in the games but the taxpayers of this province do as well---seeing how we are the ones who will be hung out to dry if they are not successful.

So what does that say about the budgeting, transparency and accountability of the Olympic Committee Furthermore, what does it say about the three provincial government appointees that sit on the Committee's board of directors The government has had a February budget, a September mini-budget and most recently the release of the second quarterly update and not even a whimper of VANOC's (Vancouver Olympic Organizing Committee) impending budget failure.

John Furlong is right the International Olympic Committee sets a lot of the budgeting rules for bid cities and can hamstring the budgeting process. But that is exactly why a substantial contingency fund should be built into the budget and why enhanced transparency, accountability and reporting to the taxpaying public is so important. British Columbians do not want to end up like Montrealers who are just this year paying off the Big "O" Olympic stadium from 1976!

In order to prevent that from happening here, the government and VANOC must implement some safeguards.

For example, all contracts for services, venues and products should be open, competitive and transparent. VANOC should look to the private sector and its expertise first, including public-private partnerships. The government appointees should report directly to the legislature on VANOC's financial status and the auditor-general should review the documents for completeness and accuracy.

The government should outline an Olympic transparency plan that includes all related 2010 government spending.

Finally, the premier should re-affirm his commitment to taxpayers that the funding envelope for the Olympics has been sealed.