The federal government has finally confirmed what most people assumed all along -- the $175 million 2010 Olympic security budget was a fantasy. The federal government now says the Games' security costs will be more than $400 million but less than $1 billion. Keeping the athletes safe is important, no question there. The question is, however, where is that money going to come from

The economy is slowing and credit is tightening. Spiraling demands for more tax dollars, falling revenues and the Campbell government's balanced budget law mean Vanoc's Olympic-sized appetite needs a diet plan. Budget choices are never easy, but the time for counting calories is now -- drop the Beijing-sized dreams -- this is a two-week amateur sporting event with a hefty price tag in dire need of reduction.

The RCMP is in charge of security for the Olympic Games. In the 2010 Security Cost Sharing Memorandum between the federal and provincial governments from December 2006, each party committed to contributing 50% to the initial and any amended security budget.

The initial security budget the province has committed to totals $87.5 million. With the province on the hook for half of any amended security budget, and with a security budget potentially rising to $1 billion, that means provincial taxpayers may be on the hook for an additional $412.5 million.

B.C.'s Finance Minister, and Minster for the Olympics Colin Hansen, has somewhat wishfully insisted it's the feds who have to cover off additional security costs. Except that Prime Minister Steven Harper said in 2006 he's drawn a line in the sand on Olympic spending. This wasn't exactly true given the additional $20 million from the feds for the opening and closing ceremonies announced in 2008. That now seems like chump change. The total federal budget for the Olympics stands at $655 million. An additional $412.5 million will put the cost, to the federal government alone, at over $1 billion dollars.

What this really means is the 2010 Olympic extravaganza is going to have to be cut drastically to stay within budget. Where could the cuts come from First, the provincial government must forget about paying bureaucrats to volunteer at the Olympics. This was a stupid idea that undermined the efforts of real volunteers. All the 'nice to haves' such as the live sites, legacy funds, and arts fund must be revisited. Vanoc's $44 million employee bonus fund needs a second look, as does the $45 million for the opening, closing and torch ceremonies. There are lots of other places to cut. For instance, do we really need some undefined number of federal bureaucrats hanging around in B.C. for three months for "horizontal coordination "

The financial uncertainty will have a couple of positive benefits. It will refocus governments on the economy, force them to drop their spendthrift ways and give the Olympian spend-a-thon a reality check.