"Tax money isn't paying for it," Mayor Daley said back in February, referring to Chicago's 2016 Olympics bid -- this despite the fact that aldermen had already agreed to a $500 million guarantee for any operating overruns as well as a new tax increment financing (TIF) district to help pay for the Olympic Village. In defense of his plan, the mayor pointed out at the time that Chicago -- unlike the other potential host cities -- has steadfastly refused to sign a blanket guarantee pledging that it will cover shortfalls of any size. But today that changed, as Crain's notes:

In the end, Mayor Richard M. Daley proved no match for the International Olympic Committee.

The mayor has agreed to provide the blanket financial guarantee that the IOC seeks from host cities, the Chicago Tribune reports on its Web site. Mr. Daley had long insisted that he would not put taxpayers on the hook for overruns in the Olympics budget with such an unconditional guarantee.

However, without it, Mr. Daley risked losing the games that he has pursued for the past three years.

The idea that the federal government would ultimately help doesn't look like a reality either:

Chicago's bid cannot count on government rescue.

"It would be a gargantuan step and change of direction if the U.S. government were to step in and guarantee, and this is probably not the time President [Barack] Obama would want one more financial commitment on his plate," said Allen Sanderson, a sports economist at the University of Chicago.

"And in 2009, you're looking at a huge budget deficit in the city of Chicago and, basically, paralysis in Springfield," Sanderson said. "The political reality is this couldn't be worse timing."

We shouldn't be surprised that it's reached this point. But Daley should remember that Chicago residents overwhelmingly oppose the idea of using taxpayer dollars to pay for the Olympics.  Seventy-five percent of respondents said so in a February Tribune poll.  Considering the dismal condition of both the city and state coffers, and the looming prospect of an income tax hike, it's entirely possible that the opposition to public financing of the games has only grown in the past four months.

UPDATE: More from Greg Hinz:

I've been a backer of the Chicago 2016 Olympics bid. But it's getting hard to remain one. It's time for Mr. Daley to disclose everything, answer all the questions, and for the City Council to do its job.

And Ben Joravsky:

For the last three years, the mayor's been insisting he has a magical formula for getting someone else to pay. I told you not to believe him.

I've long thought that the Olympic bid is a cruel joke Mayor Daley is playing on his constituents--to see how much nonsense we'll swallow before we throw up. It looks like our tolerance is endless. How else to explain why folks aren't taking to the streets to stop this lunacy? 

And the Sun-Times has reaction from Ald. Joe Moore:

“This is a big deal. He’s planning to sign an agreement that puts the city on the hook for an unlimited amount of money,” said Ald. Joe Moore (49th).

“Let them come before the City Council and explain to us why this is a safe bet for taxpayers. They can tell us they have insurance. They can make all the arguments they want to make. But, as elected representatives closest to the votes, we need to have a say in this. This is something that recent events have made all too clear. We need to exercise our authority as a check and balance on the mayor’s office.”

And also from Ald. Scott Waguespack (32nd Ward):

“They made guarantees, and none of those guarantees have come true on the parking meter deal. I don’t think the Council will buy his guarantee of, ‘Don’t worry. There’s multiple layers of guarantees here,’” Waguespack said.

“The Council needs to be part of this process. The mayor’s office and 2016 needs to show us what those guarantees are and what taxpayers are on the hook for ... .I have no information right now that proves to me these backstops are genuine.”