The Los Angeles City Council gave preliminary approval Tuesday to an ordinance that would consolidate three city departments into a single entity, despite concerns it could impact the city’s goals with supporting youth and economic development.
In a 12-3 vote, council members approved a draft ordinance to consolidate the departments of youth, aging, and economic development. The responsibilities of each department would be overseen by the rebranded Community Investment Department.
The City Council is scheduled to take a second and final vote on the proposed ordinance next Tuesday. Council members Monica Rodriguez, Traci Park and Nithya Raman opposed the matter.
Mayor Karen Bass called for the consolidation last year as part of her budget for fiscal year 2025-26. The final revised budget addressed a nearly $1 billion deficit caused by overspending, a decrease in tax revenue, an increase in liability payouts, and the January 2025 wildfires, among other challenges.
In the budget summary, the mayor’s office wrote that current programs under the departments were “not strategically aligned” and could be improved under one entity. The consolidation was expected to save the city more than $1 million.
Bass in September 2025 fired Jaime Pacheco-Orozco and Carolyn Hull, the general managers of the Department of Aging and Department of Economic and Workforce Development, respectively, LAist reported.
Rodriguez has been a vocal critic of the consolidation effort, arguing that Los Angeles should not be folding its economic workforce development department into a stand-alone one with larger bureaucracy.
“At a moment when cities across the country are aggressively competing for investment, employers, tourism and economic opportunity, LA should not be weakening the very department responsible for advocating on behalf of economic development,” Rodriguez said.
She emphasized that LA is experiencing serious challenges to its business community as stores and restaurants struggle and many of which close shop due to rising costs, inflation, permitting delays, and public safety concerns.
“A stand-alone economic development department serves as a very specific purpose to wake up every single day focused on job creation, business retention, workforce opportunities, and attracting investment, supporting entrepreneurs and helping industries grow here in Los Angeles,” Rodriguez said.
“That mission deserves its own voice and its own leadership,” Rodriguez added.
The councilwoman is also an advocate for the city’s youth, and has been highly critical of eliminating the department focused on youth development.
Bass and top city officials have defended the consolidation, saying services can be provided more cost-effectively.
They argue there is a greater risk to service levels and operational sustainability if economic development moved to a smaller, standalone department.