The Los Angeles City Council voted to adopt the Economic Development & Jobs committee report that advances a consolidation-based model for a new community investment department, following extended floor debate about whether the city should instead preserve a stand‑alone Economic Development Department.

Councilmember Marquee (mister president) opened the debate and members exchanged detailed fiscal and programmatic questions with City Administrative Office staff. Yolanda Chavez of the CAO and Susie Rios Belenot said the joint CAO/CLA analysis identified roughly $5.3 million in potential annual savings beginning in fiscal year 2026–27 but that a stand‑alone economic development department would reduce those savings and shift more costs to the general fund. "We do not anticipate any savings in the current fiscal year 2526," Susie Rios Belenot said, noting estimated savings would begin in 2627 and that a stand‑alone department could add up to $4.2 million in costs in early years.

Councilmember Monica Rodriguez argued for preserving a separate Economic Development Department, saying the city risks losing specialized capacity if economic development functions are subsumed. "Economic development doesn't solely exist in areas that are eligible for CDBG," Rodriguez said, urging colleagues to "measure twice and cut once" and to produce fuller cost estimates for systems integration, facilities and IT.

On the motions before the council, an amendment (52d) introduced by Rodriguez failed in a roll call (7 ayes, 8 noes). The motion by Councilmember Price and Councilmember Sotto Martinez to adopt the EDJ report then passed (12 ayes, 3 noes). A subsequent motion to adopt the Government Efficiency, Innovation and Audits (GEIA) report—Rodriguez/Blumenfield—failed (6 ayes, 9 noes), leaving the EDJ recommendations as the prevailing approach.

The EDJ report, as approved, moves forward with consolidating administrative functions and programs into a larger community investment structure while leaving certain implementation details, transition staffing, and systems integration for follow‑up. CAO staff acknowledged that some transition costs (IT integration, space modification, backfilling positions) were still being estimated and committed to reporting implementation costs back to council.

The council forwarded the related items and prepared to go into closed session later in the meeting. The city attorney reported there was nothing to report out of closed session when the council returned.

What happens next: with the EDJ report adopted, council staff and departmental leaders are tasked with implementing the reorganization steps, providing cost estimates for consolidation work, and returning to council with the detailed transition plan and any required budget adjustments.