Drowning in unemployment, Manassas awaits federal bailout

The unemployment rate in Manassas has skyrocketed to 13% in the midst of the coronavirus pandemic, and long-awaited stimulus money from the Federal Government has yet to arrive.

In January and February, the city’s unemployment rates were 2.8% and 2.5%, respectively, according to the Virginia Employment Commission. The city had just come off a “banner year,” with new businesses opening and existing businesses expanding or relocating to the city.

“For the filing week ending May 2, the figure for seasonally unadjusted initial claims in Virginia was 59,631. The latest claims figure was a decrease of 12,857 claimants from the previous week. Though the 17.7% decline indicates that the volume of initial claims has retreated from its recent peak, it may not return to pre-pandemic levels for some time,” the Virignia Employment Commssion states in a press release.

Unemployment numbers have not been this high since the Great Depression of the 1930s.

According to Patrick Small, Economic Development Director for the Manassas City, the businesses that have been hurt the hardest are the mom-and-pop shops.

“Small businesses generally and restaurant, retail and personal services specifically.  It is going to take a return to normalcy so they can resume operations for them to recover.  Businesses need customers and sales,” Small said.

As of May 7, the city of Manassas has 332 total coronavirus cases, with 38 hospitalized, and one death. The city’s death count was revised from two because the Prince William Health District had incorrectly classified a death to Manassas when it was really in Prince William County, said city spokeswoman Patty Prince.

In response to the staggering unemployment rate, city leaders have discussed a possible federal economic bailout that could come by way of the CARES Act, (The Coronavirus Aid, Relief, and Economic Security (CARES), which was passed by Congress and signed into law by President Trump on March 27.

According to the Treasury Government’s website, “Through the Coronavirus Relief Fund, the CARES Act provides for payments to state, local, and tribal governments navigating the impact of the COVID-19 outbreak.”

According to Small, the money from the CARES Act has not been distributed yet to the city government. The city school division, however, received $1 million in CARES funding and now leaders there must figure out how they’re going to spend it.

In the meantime, Small said, “other Federal programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Emergency Advance (EIDL) have been a boon to many local businesses, as have unemployment insurance funds that have been made available to people who have lost their jobs; including the self-employed.

The U.S. Small Business Administration (SBA) and America’s Small Business Development Center (SBDC) have been of particular help to local businesses,” adds Small.

When city government does it CARES money, none of the cash may be used to make up for lost money that the city would have collected through sales tax revenue had the state not shut down due to the coronavirus pandemic, explained Manassas City Manager Patrick “Pat” Pate.

The CARES money can only go to cover the costs of coronavirus-related expenditures. City leaders aren’t sure yet if they will receive a check from the Federal Government, or if they will have to reimburse the money after they pay out-of-pocket for a mounting number of expenses.

So far, the city government has spent  $142,000 on personal protective gear, cleaning, and other hard costs associated with the coronavirus fight.

Fewer calls for help

Pate said that city operations are working the same way they have over the last several weeks, with ongoing activity despite closed buildings, garbage is picked up, and 911 calls being answered – although Pate said they are seeing less of both police and fire and rescue calls.

The number of fire and rescue calls placed to the city’s 911 office is down since the beginning of March. The city’s fire and rescue crews are running about three coronavirus-related calls per day.

On top of that, fewer people are calling for police help during the pandemic. The city has seen a 20% drop in calls from people needing the assistance of police officers.

Pate said that the city is in contestant contact with the hospital that serves the city, Novant Health/UVA Prince William Medical Center.

“If you have an emergency like a heart attack or stroke, come to the hospital and do not wait until it has progressed too long,” Pate urged residents.

Based on the information from the hospital, Pate said that those who choose to make a hospital emergency room are in a “lot worse shape now” because they waited too long to come in.

Pate said the hospital has personal protective equipment and they are separating people, so residents should not be afraid to come in and not wait until it’s too late.