America’s health care system was not prepared for this pandemic, even though we knew something similar was likely to happen, eventually. Our economic system was equally unprepared. As a result, the tools we’re forced to use are crude, ungraceful, blunt. Closed-down businesses, schools, social venues. Make-shift medical supplies. Gymnasiums converted into emergency rooms. Quarantined cruise ships. Cancelled flights. Closed borders.
What can a small-town government do in such a situation?
We’re listening here to Pagosa Springs Town Manager Andrea Phillips, addressing an internet-enabled ‘work session’ of the Town Council on March 26:
“So there are a lot of great resources and programs out there, and it’s constantly changing; new programs are being developed from the federal level on down…
“…As these new programs get developed, we just keep sending information out. Included in your Council packet is a lot of information. For example, businesses could get ‘business interruption insurance.’ Of course, that depends on the carrier, but it’s designed to cover lost income…
“The Small Business Administration has disaster-specific loans of up to $2 million. The Small Business Development Center is offering an online series about keeping your business together during a crisis. So there’s quite a bit of good information out there.”
You can download the two-page list of helpful resources from the Council’s packet, here.
Ms. Phillips noted that local restaurants are offering ‘take-out’ food and alcohol, and she encouraged people to spend money helping them out.
Mary Jo Coulehan, Executive Director at the Pagosa Springs Chamber of Commerce, spoke about low-interest and zero-interest loans available through Region 9 Economic Development and the Small Business Development Center — both located in Durango — with interest payments deferred for up to six months.
“If businesses can get through the summer, then they feel that they can pay off the loan. You know, when your business is closed, it doesn’t matter that you have a loan, when you have no money coming in to pay the loan. And that’s what the businesses are really concerned about right now. ‘Where am I going to get money to pay for a loan?’ So the Region 9 program, and some of the other programs… if you can pay back $5,000 within six months, then there is no interest. It’s almost like free money.”
Well, not exactly free money, because you have to pay it back, eventually.
Ms. Coulehan explained that, at this point, there’s no ‘deadline’ for applications for these locally-administered low-interest loans. Perhaps a business doesn’t need a loan this week… but will need one in four months? If things don’t ‘bounce back’? Listening to this conversation, I couldn’t help wondering how many businesses — and families — already have loans. Home loans, business loans, auto loans, student loans. Outstanding medical bills? So take out a loan, to pay the interest on your other loans? I guess that might work.
Ms. Phillips referenced a printable poster included in the Council’s information packet, created by Council member Maddie Bergon. (Click the image for a larger version.)
Council member David Schanzenbaker asked if the Town could legally waive, or rebate, taxes during the worst weeks of the crisis. Ms. Phillips suggested that the Town could defer or waive taxes and fees it collects directly, but probably not the County-administered sales tax.
Mr. Schanzenbaker pressed the issue.
“I guess the bigger point is, these are pretty extraordinary times, and I think we need to be thinking outside the box as much as we can. We don’t need to decide to do everything we talk about, but we need to consider a pretty wide variety of potential actions… I think there are two things we can do, as a local government, to help in the short term. Because anything we do can only be on a fairly small scale; we can’t be the only solution for people or businesses going forward.
“And we see the federal government has got a stimulus package, or whatever they’re calling it. A relief package. But that’s going to take a while for people to actually start receiving money or assistance. So I see the local government has a chance to act more quickly, with the relief activity, than what we’re going to see from the state or federal government…
“If people lose their job today, they don’t have any money, right off the bat. It will be challenging to wait three weeks until you get help from the federal government…”
(Three weeks might be overly optimistic, IMHO)
“Maybe there’s a role for local government, where we could provide a little bit of help in the very short term. So I’d like to explore what our possibilities are for that.”
Ms. Bergon said she’d like to see a state or local order, prohibiting evictions until the economy settles back down.
Mayor Don Volger noted that some economic sectors are hard-hit by the state’s closure orders — hotels, restaurants — but other sectors are continuing to work via the internet, or through exemptions in the closure orders. Construction has been allowed to continue. Liquor and marijuana sales keeping rolling. Many government and school district employees are working from home. Our medical employees are working overtime.
“I think we’ve got to focus in on… Who are we targeting here?” asked the mayor. “Who are the ones who really need the assistance? And help those first, as we can…” And the Town should be working in concert with the County government, the mayor felt.
Mr. Schanzenbaker — after eight years on the Council — is aware of the difficulties inherent in trying to work cooperatively with the Board of County Commissioners. He was obviously leaning in the direction of ‘quick’ rather than ‘rigorous’.
“As far as for individuals, I’d like to look into, for example, the idea of giving every town resident $200. What would be the implications of something like that? Is it feasible? Yes, we want to try and coordinate with the County government so that we’re presenting a united front, but I don’t think we want to wait a month to get relief to individuals…”
According to my pocket calculator, if the Town government provided $200 to every Town resident — all 1,900 of us — the bill would come to $380,000.
If the Town government provided that kind of payment to everyone in Archuleta County, the cost would be $2.7 million.
And each person would do, what exactly, with $200?
As Mr. Schanzenbaker was willing to admit, such a program would be a ‘blunt tool’.