The California Senate signed on legislation Monday that would authorize up to 250 million dollars to underwrite the 2016 Summer Olympics if Los Angeles is selected as the host city.

The Senate voted 30-2 in favor of the plan, introduced by Assembly Speaker Fabian Nunez.

The plan calls for splitting debt of up to 500 million dollars between the city and state while also allowing Governor Arnold Schwarzenegger to sign all contracts related to holding the Olympics in Los Angeles.

The Assembly passed the measure on March 29 one day before it was approved by the Los Angeles City Council.

Schwarzenegger will likely sign the measure.

The United States Olympic Committee will announce on Saturday whether Los Angeles or Chicago will be selected as a U.S. bid city to host the Olympics.

The International Olympic Committee will select a host city from a pool of worldwide candidates in 2009.

Bringing the Summer Olympics back to Los Angeles for a third time could boost the local economy by 7.2 billion dollars and create nearly 68,000 jobs, according to an economic impact study released last month by Economics Research Associates, which has completed similar reports for other cities that have previously hosted the Olympics.

Los Angeles made a bid to host the 2012 Olympics, but was passed over as a U.S. candidate in favor of New York City. New York garnered 13 votes from the IOC in its bid to host the 2012 Olympics, but London was eventually chosen to host those games. The 2008 Summer Olympics will be held in Beijing.

The last American city to host the Summer Olympics was Atlanta in 1996.

Source: Xinhua