Mayor Fuller today announced the launch of the Newton COVID-19 Care Fund, established by Newton community leaders in partnership with United Way of Massachusetts Bay and Merrimack Valley.
The campaign will help families and individuals who have been financially impacted by the coronavirus pandemic. All donations will be collected by United Way and distributed by an established Newton nonprofit organization with a track record of administering assistance funds. These funds will pay for rent, food, utilities, internet connectivity for families with school-aged children, childcare, medications and other basic needs. City of Newton First Responders who incur new childcare expenses or other expenses as a result of the crisis will also be eligible.
Learn more, apply for financial assistance or donate here.
Additional information is here.
A strong first step by Mayor Fuller to address one critical economic component of this disaster. The City itself will need to do much more in order to eventually help local businesses like restaurants reopen. I’d like to see city government create a $50M recovery fund in coordination with a local bank or banks. Many small businesses and restaurants that might have trouble qualifying for loans could get immediate funding if the City acted as guarantor.
While I’m very sympathetic to the plight of those businesses, I don’t think the City should act as guarantor for private businesses. This invites a moral hazard situation, where the company borrowing money has an incentive to increase their exposure to risk because they don’t bear the full costs of that risk. Only the state or federal government has enough risk-bearing ability to cover these kinds of situations. The City will be facing its own financial stresses as the result of this epidemic. Look at the city budget to see revenue sources and check which ones will be diminished for the next several months. (Things you might not think are very big –inspectional service fees, parking revenues, parking fines, meals tax, hotel taxes–along with investment income in a zero % interest environment–add up to millions.)
But perhaps the City could help in some kind of coordinating role among the banks, or could give priority to local businesses in its own spending, or could otherwise help promote those businesses among the public. Plus, of course, all of us could make an effort to shop and eat locally.
Another comment lost because the spam catcher is BELOW the submit comment button and I can’t see it unless I scroll down further. Please rethink how you’re doing that.
What I had said (approximately) is that I am very empathetic to our small businesses and I do love them, but our nonprofit organizations are on the forefront of my mind: Boys and Girls Club and the YMCA:. They provide a really important service to the community and one that is sorely lacking and that is affordable childcare and activities for kids. I’m concerned about the Y in particular. With people understandably canceling their memberships, are they still going to be able to offer the camps, after school programs, swimming lessons, and sports lessons once they’re able to reopen? What about the teachers and instructors?
I’d like to see the mayor come up with a plan to support them, just not businesses.