Premier Jacinta Allan left the Victorian government's 2026 Commonwealth Games organisers hanging for three months after she was directly contacted about budget problems.
In a submission to a parliamentary inquiry into the Games' cancellation, the Victorian organising committee for the event said it became clear its share of the initial $2.6 billion budget was insufficient.
Duplication of infrastructure and support services across five regional host cities, significant transport and security costs and the scale of the contractually agreed sporting and cultural program were cited as key cost drivers.
The three-year lead-in time, billed as the shortest in the event's history, cut down the window for planning, consultation and contingency, resulting in "significant cost risks against an immovable deadline".
Ahead of the May state budget, the committee asked the Victorian government for a $722 million boost to its original $1 billion budget.
On February 22, the request was formally handed to the Office of the Commonwealth Games, which was within the then-Department of Jobs, Precincts and Regions.
Committee chair and former president of AFL club Richmond Peggy O'Neal wrote to Ms Allan, who was then-Games delivery minister, on April 4 highlighting "the critical timelines for decision making".
That same month, the committee was told by the government's Games office to find ways to "reduce the cost" of delivering the event before presenting a revised budget submission with $124.8 million in suggested savings.
No extra Games funding was outlined when Treasurer Tim Pallas handed down the state budget on May 23.
Former premier Daniel Andrews announced Victoria was pulling out of hosting the event on July 18, citing estimated costs blowing out to as much as $7 billion.
Opposition Leader John Pesutto said the committee's timeline contradicted Ms Allan's claim she became aware of cost overruns in the preceding weeks before the Games were formally dumped.
"This was all a hoax," he told reporters at state parliament on Thursday.
Ms Allan confirmed she received the correspondence but did not respond until after the Games were called off.
"I met on a number of occasions with the chair and the CEO of the organising committee," she said during question time.
"In terms of the response to the chair's request, that was made on the 18th of July ... when we made the announcement of the final decision that was made by the cabinet the night before."
Earlier, Ms Allan told reporters the committee's warning did not set off alarm bells that the Games were in jeopardy.
"We had been working through the focus on how best to deliver the regional Games model consistent with the agreement that was signed," she said.
On Wednesday, the new premier confirmed Mr Andrews first sought legal advice on withdrawing from the event on June 14, the day after she fronted a state budget estimates hearing.
In her evidence, Ms Allan reaffirmed regional Victoria would host 7000 athletes and officials from 70 nations across 12 days.
A document, submitted to the parliamentary inquiry by the Department of Premier and Cabinet, shows law firm Arnold Bloch Leibler was paid $1,265,982 for services and costs related to the withdrawal.
That's on top of the $380 million in compensation the state government agreed to pay Games organisers.
The state inquiry into the Games' cancellation will kick off public hearings next week.
