Regional Communities, Service Providers See Long Road To COVID-19 Recovery, Fed Survey Shows
Question 1: At this point in time, what level of disruption is COVID-19 having on economic conditions in the communities you serve?
Nearly all respondents reported that the pandemic caused “significant” disruption to economic conditions in their communities.
Over two-thirds (68 percent) anticipate a “difficult” economic recovery, while a little less than one-third (28 percent) expect their local economy to “bounce back quickly.”
Question 2: How long do you expect it will take for the communities you serve to return to the conditions they were experiencing before the impact of COVID-19?
Nearly 40 percent of respondents estimate that it will take seven to 12 months for their communities to return to pre-pandemic economic conditions.
Another 35 percent believe it will take longer than one year.
Question 3: At this point in time, what level of disruption is COVID-19 having on the entity you represent?
Three out of four respondents said the pandemic had caused “significant” disruption to their own organization.
Out of those respondents, a little more than half expect to “bounce back quickly” and a little less than half anticipate a “difficult” recovery ahead.
Question 4: How many months can your entity operate without financial distress?
When asked how long their organization could run before experiencing financial distress, 52 percent answered that they could operate for no longer than six months before financial difficulties set in.
Seventeen percent estimate that they have seven to 12 months before experiencing financial distress and another 17 percent expect they could operate for another year without experiencing distress.
Question 5: In what ways has COVID-19 impacted the entity you represent?
Fifty-seven percent of respondents have seen an increase or anticipate an increase in the demand for their services.
However, when asked about their ability to provide services, 53 percent reported a decrease or an expected decrease.
Among other questions, 39 percent of all respondents have seen a decrease or expect a decrease in staffing levels, and 49 percent have seen an increase or anticipate an increase in expenses.
Sixty-one percent of respondents plan to either decrease their fee for service or leave it unchanged.
Forty-two percent have experienced a decrease or are planning for a decrease in philanthropic funds, while 35 percent have seen an increase or are planning to see an increase in government funds.
Note: Respondents were asked to identify whether they serve rural, suburban, or urban areas or to select all that apply if they serve more than one area.
Thirty-three percent of the 162 Eleventh District respondents serve rural areas, 57 percent serve suburban areas and 74 percent work in urban areas.
Source: Federal Reserve Bank of Dallas.