The financial impact of the COVID-19 shutdown is going to hit the Summit County economy hard. During the livestream Coffee with Council, county officials discussed economic forecasts that shows revenues dropping to levels seen in 2016 or 2017.
Summit County Council Member Glen Wright says the revenue hit from the COVID shutdown outpaces the fund balances the county has available.
“Jeff really made a good presentation a couple of days ago on the magnitude of the hit to the gross regional product. It’s on the order of hundreds of millions of dollars and as Tom mentioned our fund balances are in the single digit millions.”
The council is waiting for legislative approval for an exception on using revenues from the Transient Room Tax and the Recreation, Arts and Parks tax.
“The Governor’s going to let a special session of the legislature to make a decision on this. He doesn't seem to want to make it himself and there seems to be some movement towards allowing use of fund balances forward. Less so on the ongoing funds but we have to see what comes out of the legislature on that. There will be a special session probably in the next few weeks.”
Wright says part time and gig workers may be eligible for unemployment benefits through the CARES Act. He urges everyone to apply online with the Utah Department of Workforce Services.
“There have been some back-ups but if you're eligible for unemployment compensation, you need to get online and make sure that that check starts rolling in. The CARES Act has added $600 a week for each individual person."
Summit County Economic Development Director, Jeff Jones says national GDP for the 2nd and 3rd quarters shows significant losses which will impact Summit County two-fold because the local economy relies heavily on the hospitality business.
According to my analysis, the first quarter across the country GDP dropped about 3% and the second quarter nationwide will drop about 18.7%. We're going to feel that hit. Our workforce numbers, our loss is going to actually be about double, on a per capita basis than the national average. So, we're going to probably see our own gross regional product peel back to 2016, 2017 levels.
Jones projects a 4th quarter recovery and says the county is working with local businesses, regional economic developers, Park City and the Chamber Bureau. He expects more stimulus as the shut-down continues and urges business owners to stay informed by following Summit County.org.
“We’re working with Becky Kearns (Zion’s Bank) and Rob Sergent (Alpine Distilling) who led a small team to put together a plan that nests underneath the governor's plan, that is broken out into three phases for economic resiliency and recovery. And those phases are the urgent phase that we're in now, the next phase is stabilization and the third phase is recovery.”
Jones says even if you’re unsure of eligibility, everyone should apply for unemployment benefits. He says small businesses that have been forced to close or reduce services should seek financial input and assistance as quickly as possible.
“To meet with your banker or financial advisor right off the bat and then to align your needs with various programs, financial programs from the CARES Act.”
Links to programs can be found in this story on KPCW.org
