Two major initiatives were launched at Monday’s Falls Church City Council meeting aimed at meeting the economic storm clouds that are growing over the region this fall.
The first took the form of a Council proclamation declaring the upcoming month of November as “Live Local Month” in conjunction with an initiative by the Falls Church Chamber of Commerce.
The second was a modified first reading of an ordinance to more than double the amount of funds allocated by the Council from the City’s FY25 surplus to an Emergency Financial Assistance Fund, from $20,000 to $45,000.
On the “Live Local” initiative, the Council’s proclamation joins the Chamber “in challenging residents and businesses to pledge to keep 20 percent more of their spending in the City of Falls Church” during the coming month.
The proclamation cites the “multiplier effect” of buying products and services from local businesses “creating diverse job opportunities and strengthening the City’s overall economy” as “shopping, eating, playing, creating and doing business in the city adds to the local tax revenue base, which supports city schools, roads and other city services.”
The initiative is important as many owners of the over 100 restaurants in the city are reporting a decline in business due to the high numbers of layoffs of federal and federal contractor employees and the current federal government shutdown.
“When you consider all of the professional services, retail, restaurants and entertainment that we have, meeting the Live Local Challenge should be easy,” said Elise Bengston, executive director of the Chamber. “As we Live Local and shop local, we ge to know one another on a personal level and the city becomes one big Cheers. That is how we build a strong community, one that is unique.”
At its meeting Monday, the Falls Church City Council shifted an additional $25,000 toward an emergency aid fund, now to total $50,000, in light of the heightened food insecurity facing the entire region. With health care costs expected to rise dramatically beginning this coming weekend, and food assistance SNAP programs also due to expire Nov. 1, much of Monday’s meeting was devoted to discussions of plans to meet the crisis, culminating in a unanimous vote to shift the $25,000 of FY25 budgetary surplus funds from the committee to celebrate the nation’s 250th anniversary next year to availability for immediate public aid.
F.C. City Manager Wyatt Shields reported to the Council about regionwide efforts to prepare for what may arise from the new situation, noting that Gov. Youngkin has declared a state of emergency, indicating the state will step in to help with the SNAP program, even if temporarily. Shields said that there are no specific details yet on how regional governments will coordinate efforts, but that talks are underway. He noted that demand is already way up on what food banks and non-profits are able to provide.
Mayor Letty Hardi noted the importance that programs like the WIC (woman , infants, children) component of SNAP (the federal Supplemental Nutrition Assistance Program) needs to be particularly noted. Council member Marybeth Connelly added that “we need to make sure our safety nets don’t have holes.” The efforts of food banks and non-profits need also to include the schools and the Falls Church Education Foundation.
In giving preliminary approval to an overall allocation of the budget surplus Monday night, the Council voted to send $835,000 to its capital reserves, including $116,000 to a contingency fund, that can also act as a backdrop to efforts to meet emergency food assistance and other needs, Connelly said.
The Council is slated to give a final approval to the allocations at its Nov. 10 meeting.
Meanwhile, in the context of the federal shutdown and workforce cuts continuing to affect Northern Virginia’s economy, a new survey from the Northern Virginia Chamber of Commerce and Pinkston released this week highlighted growing concern among business leaders about the economic effects.
Of the 120 executives and business owners surveyed across Northern Virginia, 43 percent said the shutdown is causing their business to decline, while another 65 percent identified it as the top external issue impacting operations. Federal agency layoffs and inflation were close behind, cited by 52 percent of respondents.
Nearly half of business leaders (48 percent) believe the Northern Virginia economy will decline over the next six months, a significant drop in confidence compared to earlier this year. Local businesses also cited challenges related to hiring, workforce retention, and reduced consumer spending, all of which are tied to uncertainty in the federal sector, a cornerstone of our region’s economy.
