City council hears report on COVID-19 long-term recovery

COLUMBIA, Mo. (KMIZ)

The Columbia City Council met at 7 p.m. on Monday, and heard a report on a COVID-19 long-term recovery plan.

In March, a committee was developed to represent emergency support function 14, long-term recovery, under the Boone County Emergency Operation Plan, as well as, to address distributing funds and community development grants.

The group is comprised of members from the City of Columbia, downtown CID, Business Loop CID, REDI, Columbia Public Schools, Cradle to Career Alliance, University of Missouri, City of Ashland, City of Centralia, as well as, many others.

The report touches on several topics impacted by the COVID-19 pandemic, including education, the workforce, and housing.

According to the report, the District's business composition includes restaurants, bars, services, retailers, churches, property owners, and a small percent of others.

Twenty-five percent of the businesses employed three to seven employees before COVID-19, while 23% had 25 or more employees before COVID-19.

In mid-May, the number of businesses that still maintained 25 or more employees dropped to 3% of total businesses surveyed, while businesses with zero to three employees jumped from 13% to 26% after stay at home orders went into effect.

There are several industry sectors that employ the majority of Boone County residents, including higher education, healthcare and manufacturing.

Stacey Button with Regional Economic Development Incorporated in Columbia said in a statement, "Existing businesses, especially retail, hospitality, and restaurants have been impacted, as has our educational institutions through furloughs and layoffs.  Additionally, impacts to the region's tax base are anticipated and related budgetary constraints will be monitored and evaluated on an ongoing basis."

The University of Missouri has had several rounds of furloughs and layoffs, including 173 layoffs, 3,598 furloughs and 2,317 pay cuts since May 1.

Many restaurants in Columbia have gone to curbside pickup only during the pandemic.

Unemployment rates have also increased significantly in Boone County. A significant amount of those who have filed for unemployment in the county worked in the retail, restaurant, hospitality, or personal service sector, according to the report.

The unemployment rate in Boone County rose from 3.8% in March 2020, to 6.6% as of May 2020.

Job Point in Columbia helps train people and place them in jobs. Steve Smith is the President and CEO of Job Point. He said employment has been impact in different ways, including employer furloughs and some people leaving work because of health concerns or preexisting conditions.

"Since that time we have seen more furloughs, started to see layoffs, some businesses have gone out of business. Not a huge number but some have," Smith said.

Smith said even though many industries like hospitality or restaurants have been negatively impacted, there are job openings in other areas.

"There are a number of businesses, types of businesses, that are actually more people than they have in a long time. Some of the construction workers, some of the cleaning services, kind of basic industry type jobs," he said.

He said in the last month or so Job Point placing people in jobs has picked up dramatically.

Columbia Mayor Brian Treece said the COVID-19 pandemic has exploited inequities in the current system.

"Those that have access to healthcare and those that don't, those that have access to technology and those that don't, you know a number of small businesses individuals that may have been on the bubble before COVID, this certainly didn't help," he said.

The report provides a resource to the city council to know what resources are and will be available and what policy discussion they should have.

Smith said he does not believe all of the jobs that people lost will be there for them to fill once again.

Treece said the city's current mask order is one way to make consumers and employers comfortable with getting back to work and keeping people safe.

Smith said many people will need additional training, a method the report listed as important as well, to enhance their skills. He said training and education to allow people to learn new skills and enhance their current ones is one way to get people back into the workforce, but also to address socioeconomic differences in the community.

Smith said city leaders have the power of the purse with its budget, although it will be tight because of impacts of the virus, and the power to shape policy.

"I think it's as simple as saying that we won't be able to just keep on doing what we've always done. I think it's going to take some new approaches to some of the same, I shouldn't say old problems, but same problems we've had for a long time," he said.

Smith said thee needs to be more funding focused toward workforce development.

Treece said city leaders will have to focus, in part, on helping those hit hardest by the virus.

"We have about 25 million dollars in federal and state funds. Of course 21 million of that is sitting at the county waiting to be distributed," Treece said. "As we begin to have these conversations we need to look at those small businesses and retailers that have been impacted either by lack of consumer confidence and going out and going out safely to resume their normal activity as well as maybe some of those essential workers that, you know, have not been able to perform their jobs."

Button said in a statement REDI has been making businesses aware of resources available to them.

"The first step was addressing immediate needs of our region's businesses and making them aware of resources available to them, such as federal, state, and local financial relief programs," she said.

He said minimum wage and tipped employees have been disproportionately impacted, and leaders need to focus on stabilizing that economy.

Both Smith and Treece said they believe the Columbia market will recover more quickly than other markets.

The report lists the following as other potential components to support the Boone County workforce:

• A clear understanding of employer needs
• Sustainable funding
• Training for career changes
• Support for child care and transportation
• Reduce household expenses and make income go further
• Equitable opportunities to increase income.

Check back for updates on this developing story.