Unemployment claims have set a state record in Arizona nearing 120,000 as the COVID-19 crisis worsens.
During a special meeting held online, Phoenix City Council discussed the economic effects COVID-19 has caused in past weeks.
There were 3,000 unemployment claims during the week of March 7, rising to nearly 90,000 the week of March 28, according to the Arizona Department of Economic Security. Within the same time frame, the unemployment claims for the U.S. went from 211,000 to 6.65 million a week.
The pandemic will cause economic uncertainty, said Deputy City Manager Jeff Barton at the meeting, and the impact will be “significant.”
“We know that there will be no General Fund surplus as a result of what is happening now,” Barton said at the meeting. “What happened to us in the Great Recession, we had a slowdown, what we are seeing now is almost a virtual shutdown.”
As numbers such as sales tax results may take months to come in, the length of economic recovery is unknown, Barton said. Impacts on pensions are also unknown but will be significant as well.
While the legislation surrounding it is still fluid, $4 billion is expected to be given to the state of Arizona from the Coronavirus Aid, Relief and Economic (CARES) Act, according to Barton. The money, given by the federal government, can only be used to cover COVID-related expenses.
While more economic impacts will be known in the upcoming months, the City of Phoenix anticipates a noticeable deficit in its budget, according to Barton. Funds to pubic resources such as transportation, parks and preserves, and public safety are also expected to decrease.
In order to combat the foreseen impacts, Barton recommended the implementation of a flexible budget and the cutting of costs.
At the meeting, the City Council also discussed the closure of public parks and outdoor recreation areas.
As Governor Doug Ducey declared these areas essential, the council has closed playgrounds and many park facilities, according to Parks and Recreation Director Inger Erickson. Spaces like tennis courts, dog parks and skate parks remain open.
With Easter weekend approaching on April 11-12, the council voted 7-2 to partially close public parks in order to manage the crowds usually drawn by the holiday. Parking and picnicking will not be allowed that weekend, but access to walking and green space will still be available.
While a majority of council members were in favor of taking precautions, some feared a partial closure would not do enough.
“In order to save peoples’ lives, I feel it is important to do as much as we can to keep people home,” said Councilman Carlos Garcia, who was in favor of complete closure of the trails, golf courses, and public parks on Easter, at the meeting.
“I have spoken to several doctors regarding the trails and the parks, and if we want to flatten the curves and save lives we have to do what the right thing is to do,” said Councilwoman Laura Pastor, who is also in favor of complete closure, at the meeting.
Keeping the parks open at all invites problems, noted Pastor. She said that large groups still frequent parks and the areas they visit, like ramadas and restrooms, are not sanitized frequently enough.
“We have a public health crisis going on right now, and we have to do what is best for everybody regarding public health,” Pastor said at the meeting. “I am in favor of (complete closure of the parks). I think we need to just be able to stay home, have our picnics at home, and be able to do that within the area we are confined in.”
On the other hand, Councilmen Sal DiCiccio and Jim Waring voted against the partial closure plan.
“I am not in support of any (form of park closure),” said DiCiccio at the meeting. “If you look at it, the trail system has a heavy impact on my district … it’s hard to tell someone to do something if I am not willing to do it on my own.”
DiCiccio backed his decision following the vote on Twitter advising his followers that, “Now more than ever, the people of Phoenix need access to trails and outdoor spaces where they can get some fresh air to stay healthy.”
Contact the reporter at hrein@asu.edu
Hailey Rein is the Education Editor at Downtown Devil and a senior at the Walter Cronkite School of Journalism and Mass communications. In addition, she is a digital producer at azcentral.com and The Arizona Republic. In her free time, she enjoys being with her dogs and watching a rom-com.
