President Joe Biden announced a program to provide student debt relief to millions of borrowers of federal loans. The plan would offer up to US$10,000 in forgiveness for people who earn less than $125,000 – $250,000 for couples – and up to $20,000 for Pell Grant recipients. Biden also extended the pause on repaying federal student loan debt through Dec. 31, 2022, and has proposed a cap on income that can be used to calculate how much borrowers repay through income-driven repayment.

We asked three experts to explain the decision and its impact.

Relief makes real difference but ignores structural issues

Terri Friedline, Associate Professor of Social Work, University of Michigan

The Biden administration’s plan is an important step that I believe will make a real difference in many people’s lives. The White House estimates that about 20 million of the nation’s roughly 43 million student debt holders will see their entire balance canceled.

Despite this considerable impact, the plan is still limited. I hope it’s just the beginning in much-needed policy conversations about debt and education in the United States.

For one thing, Biden’s plan cuts less than 20% of America’s $1.75 trillion student debt tab.

In addition, the income cap of $125,000 focuses on borrowers’ socioeconomic class while ignoring the roles structural racism and sexism play in terms of who borrows and how much. For example, Black women borrow about $38,000 on average to finance their education, compared with $30,000 for white men. And because interest on student loans quickly accumulates, most Black female borrowers still owe their original balance 20 years after enrolling in school. By comparison, most white borrowers have paid off their loans completely within that time period.

The Biden administration will have to do more if it aims to adequately address these and the many other remaining structural problems with debt and education.

Plan extends much-needed relief to Black borrowers

Dominique Baker, Assistant Professor of Education Policy, Southern Methodist University

When approximately 10,000 student loan borrowers had their private student loans randomly canceled from 2010 to 2017, researchers found that it ultimately enabled them to more easily move, change jobs and earn more money. The borrowers were also 11% less likely to default on credit cards or other loans.

I expect similar outcomes will flow from the Biden administration’s decision to cancel federal student loans. And the decision to cancel up to $20,000 for those who received Pell Grants means that even more relief may flow to borrowers who are Black.

From the standpoint of racial justice, I believe this additional relief for Black borrowers is necessary because of centuries of systemic inequities. Such inequities include accumulating education debt through “predatory inclusion,” a practice in which Black people are offered access to things like college or buying a house but on exploitative financial terms that have long-term negative effects.

Black student loan borrowers are also often the most burdened by student loan debt. As one example, Black bachelor’s degree earners are more likely to default on their student loans than white students who earn a bachelor’s degree – 21% versus 4%, respectively. Even more startling, Black bachelor’s degree recipients default at a higher rate than white students who leave college with no degree – 21% versus 18%, respectively.

The Biden administration also has proposed changes to the income-driven repayment plan, which should help future undergraduate borrowers by reducing the monthly percentage of discretionary income borrowers would pay from 10% to 5% and increasing what counts as nondiscretionary income. That means borrowers will have more money that will not be used to calculate the percentage they owe each month.

I’d argue there is still work to be done to create an affordable college education. But today was an excellent start.

Loan forgiveness could fuel inflation

John W. Diamond, Director of the Baker Institute’s Center for Public Finance, Rice University

The price tag for Biden’s debt forgiveness plan is estimated at a little more than $300 billion.

While it will provide direct financial benefits for some people who currently owe money on federal student loans, I believe there will be another cost: higher inflation.

U.S. inflation is already rising at just below the fastest annual pace in 40 years, prompting the Federal Reserve to aggressively hike interest rates to reduce it, even at the risk of recession. Biden’s plan will make the central bank’s job tougher.

The upward pressure on inflation will result from increased spending by those who see their student debts reduced, as well as from the continuing moratorium on federal loan repayments. This higher demand for consumer goods – relative to a world without debt relief or a repayment moratorium – has the effect of driving up prices for current goods and services.

The Committee for a Responsible Federal Budget found that a similar though more modest version of debt forgiveness would lead to a measurable increase in spending on personal consumption, which would have the effect of driving up prices for all consumers. That was based on a plan to spend roughly $230 billion on debt forgiveness – at least $70 billion less than Biden’s plan.

Another side effect could be that Biden’s debt relief offers incentives to students entering or currently in college to take on additional debt in anticipation of future rounds of forgiveness. Economists call this moral hazard. Other research found that increases in student borrowing can result in bigger tuition increases.

Some research has pointed to positive economic outcomes for those who receive debt relief, such as less future indebtedness, greater job mobility and higher salaries. But these effects are based on a full discharge of student debt and not an incremental reduction like the one Biden announced.

Ultimately, loan forgiveness – whatever its merits – will likely lead to larger federal deficits and higher inflation. While it benefits those with student loan debt, those benefits should be weighed against the costs it imposes on others and the economy.

Terri Friedline, Associate Professor of Social Work, University of Michigan; Dominique Baker, Assistant Professor of Education Policy, Southern Methodist University, and John W. Diamond, Director, Center for Public Finance at Rice University's Baker Institute, Edward A. and Hermena Hancock Kelly Fellow in Public Finance, Adjunct Professor of Economics, Rice University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

LAKE COUNTY, Calif. — During a special Monday afternoon meeting, the Clearlake City Council chose not to take action to appoint two of its members to new terms and approved staff hiring an executive search firm to find a new finance director.

Mayor Dirk Slooten and Councilman Russ Cremer filed for reelection, with no other individuals filing to run.

City Clerk/Administrative Services Director Melissa Swanson explained that because there are only two candidates for the two seats, elections code gives the city the option of appointing Slooten and Cremer rather than holding an election in November.

That was the option the city of Lakeport took four years ago, when the Lakeport City Council appointed Stacey Mattina and Mireya Turner, who were seeking reelection.

However, the Clearlake City Council decided against making the appointments due to concerns that it could limit options in the future should a vacancy on the council occur.

That concern is because of Government Code 36512(d), which Swanson said prohibits an appointment that would result in a majority of council members serving by way of appointment.

Swanson said the city already had budgeted the election for November. She said that if the council took no action by Thursday, the election would go forward for the two council seats as well as for the city treasurer’s job.

“I thought this was going to be a pretty simple decision for me,” said Councilman Russ Perdock.

However, he said if another council member left, it would leave the city with no option but to hold a special election, which could be expensive.

Other council members shared that concern. Slooten said he thought they should go forward with an election.

Swanson said no one filed to run for city treasurer, and the council also had the option to make an appointment or let the election go forward.

The city has not had an elected treasurer since 2006, when Elmer Maryatt retired. Since then, the council has appointed a city staffer to hold the job.

In 2016, the city put before voters proposals to make both the city treasurer and city clerk appointed, not elected positions. At that time, voters approved making the clerk an appointed position, but kept the treasurer as an elected job.

Asked by Lake County News during the meeting if the city was considering putting the treasurer selection process back on the ballot, Swanson said the council could approve an ordinance in an upcoming election cycle to put it back before voters.

The council chose to take no action on the appointment, which by default means that the deadline will pass and a municipal election, consolidated with the county’s general election, will take place on Nov. 8.

Swanson said write-in candidates can still seek both the council and treasurer seats.

Registered voters in the city can pick up papers at Swanson’s office and follow a process to become valid write-in candidates. The time frame for registering is Sept. 12 to Oct. 25.

The other item of business on Tuesday was City Manager Alan Flora’s request to immediately start the effort to find the successor to Finance Director Kelcey Young.

Young, who has been with the city just over a year, has accepted a position out of state.

Flora said he didn’t want to wait two more weeks for the next council meeting but asked to get started on the recruitment right away.

Over the weekend, he said some in-county candidates had developed.

He asked for, and received, the council’s unanimous approval to spend up to $30,000 to hire an executive search firm to find a new finance director in the case a local candidate isn’t selected.

Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it.. Follow her on Twitter, @ERLarson, or Lake County News, @LakeCoNews.

LAKE COUNTY, Calif. — The Lake County Planning Commission will meet this week to discuss several projects, including one involving a cell tower in Clearlake Oaks and towers to measure wind speeds in Lower Lake.

The meeting will begin at 9 a.m. Thursday, Aug. 25, in the board chambers on the first floor of the Lake County Courthouse, 255 N. Forbes St., Lakeport.

The agenda is here.

To participate in real-time, join the Zoom meeting by clicking this link.

The webinar ID is 954 1404 1238, the pass code is 573447.

Access the meeting via one tap mobile at +16694449171,,95414041238#,,,,*573447# or dial in at 669-900-6833.

The meeting also can be viewed on the county of Lake website and on the county’s Facebook page.

At 9:20 a.m., the the commission will consider a proposed major use permit for a 170-foot tall lattice cell tower with a 20-foot tall whip antenna mounted on top, and support equipment within a 100-foot by 100-foot enclosed lease area and mitigated negative declaration based on initial study sought by Comsites West for a project at 20226 E. Highway 20 in Clearlake Oaks.

At 9:30 p.m., the commission is scheduled to hold a public hearing for a proposed use permit and categorical exemption sought by Morgan Valley Wind Tower LLC for four 197-foot tall temporary meteorological towers intended to measure wind speed at 25650 Morgan Valley Road, Lower Lake.

In other business, the commission will consider a 20-year extension for a mine at 12572 White Rock Canyon Road sought by Clearlake Redi-Mix, a subdivision extension and creation of commercially zoned lots for Valley Oaks Partners LLC, an extension for an existing billboard, and a use permit for a corn maze and pumpkin patch at 4405 and 4410 Thomas Drive in Kelseyville.

The full agenda follows.

AGENDA

4a. Approve continuation of resolution authorizing teleconferenced meetings during a state of emergency continue to exist.

4b. Approval of Minutes from the Aug. 11 Planning Commission meetings.

6a., 9:05 a.m.: Continued from July 15, public hearing, consideration of proposed 20-year extension for a mine (UPX 19-04) for Use Permit (UPM 10-01) and Categorical Exemption (CE 19-98); Applicant: CLEARLAKE REDI-MIX ; Project location: 12572 White Rock Canyon Road; Upper Lake (APN: 022-009-06).

6b., 9:10 a.m.: Continued from July 15, public hearing, consideration of proposed one-year subdivision extension (SDX 22-01) for Valley Oaks subdivision; and consider its inclusion under the original final environmental impact report and addendum. Applicant: VALLEY OAKS PARTNERS, LLC / KEITH GAPUSAN; located at 18196 and 18426 S. State Highway 29, Middletown (APNs 014-260-51, 36 and 24).

6c., 9:15 a.m.: Continued from July 15, public hearing, consideration of proposed Parcel Map (PM 21-31), to create three commercially-zoned lots, and an inclusion under the original final environmental impact report and addendum. Applicant: VALLEY OAKS PARTNERS, LLC /KEITH GAPUSAN; located at 18196 and 18426 S. State Highway 29, Middletown (APNs 014-260-51, 36 and 24).

6d., 9:20 a.m.: Continued from Aug. 11, public hearing, consideration of proposed Major Use Permit (UP 22-20) for a 170’ tall lattice cell tower with a 20’ tall whip antenna mounted on top, and support equipment within a 100’ x 100’ enclosed lease area and Mitigated Negative Declaration based on Initial Study (IS 22-21); Applicant: COMSITES WEST; Project location: 20226 E. Highway 20, Clearlake Oaks (APNs: 010-009-39, 40 and 42.

6e., 9:25 a.m.: Public hearing, consideration of proposed Use Permit Extension (UPX 22-02) for a five year extension for an existing billboard; Categorical Exemption (CE 19-98); Applicant: LAMONICA OUTDOOR ADVERTISING; Project location: 131 Soda Bay Road, Lakeport (APN 008-019-69).

6f., 9:30 a.m.: Public hearing, consideration of proposed Use Permit (UP 22-06) for four (4) 197-foot tall temporary meteorological towers intended to measure wind speed; and Categorical Exemption (CE 22-12); Applicant: MORGAN VALLEY WIND TOWER LLC; Project location: 25650 Morgan Valley Road, Lower Lake (APNs: 012-014-02 and 08).

6g., 9:35 a.m.: Public hearing, consideration of proposed Use Permit (UP 18-34) to allow a 12-acre corn maze and 3.8-acre pumpkin patch seasonal event; Applicant: MICHAEL AND TANYA HAT; Project location: 4405 and 4410 Thomas Drive, Kelseyville (APNs 008-033-36 & 008-035-58).

Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it.. Follow her on Twitter, @ERLarson, or Lake County News, @LakeCoNews.

LAKE COUNTY, Calif. — A Lake County water district is among several water systems statewide that has received awards in a new round of state grant funding.

As part of ongoing efforts to help small communities address water supply challenges amid extreme drought and build water resilience for the future, the Department of Water Resources announced its eighth round of funding through the Small Community Drought Relief Program.

In coordination with the State Water Resources Control Board, the program will provide $40 million to 15 projects in Butte, Humboldt, Lake, Madera, Mariposa, Placer, San Luis Obispo, Riverside, Sierra, Tehama, Trinity, Tulare, Ventura and Yolo counties.

Of the selected projects, 12 will directly benefit disadvantaged communities to implement long-term solutions such as pipeline replacement, well installation, and infrastructure upgrades to improve water resilience and water quality.

In Lake County, where the community's water supply is threatened as the drought causes water levels to decrease in Clear Lake, Mount Konocti Mutual Water Co. will receive $2.3 million to replace leaking water storage tanks that have led to substantial loss and install low water intake pumps.

“Many of our state’s most vulnerable communities still struggle to get access to clean, safe drinking water. These funded projects will increase local water supplies while helping communities adapt to more extreme weather patterns caused by climate change,” said Kristopher Tjernell, deputy director of integrated watershed management at DWR. “As we prepare for a fourth dry year, we will continue to work with the State Water Resources Control Board to expedite assistance to our communities in need.”

Some of the other communities set to receive funding include:

• Oceano Community Services District: In San Luis Obispo County, the water system serving the Oceano Community has several pipelines that are leaking and losing significant amounts of water. The district will receive $268,000 to replace approximately 1,350 feet of pipelines, which will save approximately 270,000 gallons of water per year.

• Banning Heights Mutual Water Co.: In Riverside County, the community of Banning Heights is struggling without a water source due to the prolonged drought and damage to critical water infrastructure caused by the Apple Fire in 2020. The company will receive $3.7 million to construct a new well and water tank and implement a hauled water program.

• Sky View County Water District: In Tehama County, the local disadvantaged community relies on one groundwater well and is struggling to meet water demands for residents and fire protection due to aging pipelines. The district will receive $5 million to provide safe drinking water to residents.

• Burnt Ranch Estates Mutual Water Co.: In Trinity County, the water system serving the small mountain community is stressed due to leaky infrastructure. The company will receive $2.5 million to replace two water storage tanks and leaking pipelines.

• Madison Community Services District: In Yolo County, the water distribution system serving the Madison community is leaking excessively and experiencing catastrophic pipeline failures. Recent fractures have led to the loss of 315,000 gallons of potable water. The district will receive $3.8 million to replace the existing water distribution system and implement well site improvements.

• Garberville Sanitary District: In Humboldt County, three of the community's tanks are leaking and capacity of the tanks has been reduced by 60 percent. As a solution, the district will receive $4.5 million to replace the three leaking tanks with two new tanks.

• City of Exeter (Tooleville): In Tulare County, the community of Tooleville has struggled with securing a safe water supply for years and currently relies on bottled water for drinking water needs. In addition, the current drought has caused the water quantity and quality of the two wells serving the community to deteriorate further. The community will receive $7.2 million to construct a new well and intertie to consolidate with the nearby City of Exeter.

The full list of funded projects can be viewed here.

The Small Community Drought Relief Program has delivered $216 million in financial assistance since receiving funding from the Budget Act of 2021.

In this year’s budget, the program received an additional $121 million that will allow the program to continue to assist small communities and start a new Water Tank Program.

Expected to launch this fall, the new program will provide tanks and hauled water to communities that are in immediate need of potable water supplies.

The program will be led by DWR in coordination with the California Office of Emergency Services, Department of General Services, and the State Water Resources Control Board.

For information about other DWR and State drought response efforts and funding programs, visit http://drought.ca.gov.

CLEARLAKE, Calif. — Clearlake resident Douglas M. Harris announced he is running for the position of Area 7 Trustee for the Yuba Community College District Board.

The district administers both Yuba Community College and Woodland Community College.

The Lake County Campus of Woodland Community College is in Area 7. Doug has served as Area 7 trustee since his appointment in March 2022.

Harris has a strong skill set to bring to the district. He is committed to representing students, faculty, staff and southern Lake County on the board.

“The purpose of a community college is to meet the career, technical, and higher educational needs of each student and the unique communities they live in,” Harris said. “Prior to my appointment to a vacancy on the Board of Trustees, I taught at the Lake County Campus for over 20 years in career-technical classes and university prep classes. This gives me insight into the challenges faced by the district’s students — and the opportunities gained by completing a certificate, associate degree or university transfer requirements.”

While teaching, Harris served on the campus’ Site Council and the Academic Senate. He also served as a negotiator in collective bargaining processes.

He has resided in Lake County for 48 years.

In addition to teaching for the district, he has worked for numerous human service agencies serving people with disabilities, seniors, and children at risk in Lake County.

Harris has served on several community boards and committees such as the Social Services Advisory Board, Habitat For Humanity Family Selection and Support Committee.

His educational background includes a bachelor’s degree from University of Wisconsin-River Falls and a Masters of Social Work from San Francisco State University.

His wife, Sissa Harris, was a longtime classified employee, faculty member, and a graduate of the Lake County Campus. Of their numerous children and grandchildren, most attended public schools in Lake County.

Asked why he would like to continue as the Area 7 Trustee, Harris said, “Promoting the efforts of all the district campuses in meeting the needs of students in our communities is my primary reason for seeking this position. Continuity on the board is important in fostering partnerships with our K-12 schools, business communities, and local governments. The district is recruiting a permanent Dean for the Lake County Campus and Chancellor for the district, making continuity doubly important. We are working to enhance course offerings for students, in online and face to face formats. The impact of fires and the pandemic make knowledge of students’ and the community’s needs and resources imperative.”

Harris deeply appreciates support for his candidacy, which he said will ensure continuation of support for our Lake County Campus and the entire Yuba Community College District.

He can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it..

LAKE COUNTY, Calif. — The city of Clearlake received big news on Monday when it was notified of a multimillion dollar grant award from California State Parks.

The city of Clearlake will receive $3 million from State Parks’ Rural Recreation and Tourism Program to create the new Burns Valley Sports Complex.

“We are thrilled to hear that State Parks loves our project as much as we do!” Clearlake City Manager Alan Flora told Lake County News in a Monday afternoon email.

“This is really a transformative project for the City, and all of Lake County, to establish a beautiful new sports complex,” Flora said.

The news came as part of California State Parks’ announcement of its $46.2 million investment to build healthier communities by creating and improving recreational facilities in 25 local parks.

Funded by Proposition 68 through the Rural Recreation and Tourism and Regional Park Programs, the grants awarded will be used to enhance outdoor recreational facilities such as trails, campgrounds, multisports fields, skate and bike parks, and picnic areas.

“Congratulations to the 25 communities receiving the grant funding,” said State Parks Director Armando Quintero. “I look forward to seeing the projects come to fruition and for Californians to start enjoying them. Spending time in the outdoors not only helps us connect with our communities, but it can also support our mental and physical health. A healthier California is good for all of us.”

Clearlake’s $3 million grant tied with those given to several other communities for the largest amount awarded.

It will be used to construct a new multipurpose turf field with lighting and a walking track; a playground; ballfields with lighting — including one softball field, one baseball field, one little league field and two T-ball fields; two picnic areas; and a restroom building.

The project will be built on a portion of a 31-acre property the Clearlake City Council voted to purchase in November 2020. It’s located north of Olympic Drive, behind the Safeway shopping center.

The sports complex is a large project that requires a variety of funding sources to make it happen, Flora said.

Flora said the estimates so far have put the total project cost at about $8 million.

The $3 million announced Monday will be added to funds from Congressman Thompson, Konocti Unified School District, Lake County Tribal Health and the city to reach that $8 million overall cost, Flora said.

“I can’t wait to see the pride our youth have when we are able to host soccer and baseball tournaments right here in Clearlake in a world class facility,” he said.

State Parks said it evaluated $235.8 million in Regional Park Program funding requests for the available $23.1 million in this application cycle.

For the Rural Recreation and Tourism Program, the department evaluated $182.3 million in funding requests for the available $23.1 million.

“These park improvements are an exciting development as we invest in communities across our diverse state,” said California Secretary for Natural Resources Wade Crowfoot. “All Californians deserve access to recreational opportunities, so that they can enjoy the outdoors and the cultural, historic, and natural resources California offers.”

Programs such as the Regional Park Program help advance the Outdoor Access for All initiative championed by Gov. Gavin Newsom and First Partner Jennifer Siebel Newsom and the Natural Resources Agency’s Outdoors for All initiative.

This effort expands outdoor access to all Californians through focused investments in open space infrastructure, outdoor programming and improvements to permit applications, with a priority of expanding access in underserved communities.

State Park’s Office of Grants and Local Services, or OGALS, develops grant programs to provide funding for local, state and nonprofit organization projects.

Since 1964, more than 7,400 local parks throughout California have been created or improved from OGALS' grant funding.

Since 2000, OGALS has administered approximately $3 billion in grant funding throughout California.

Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it.. Follow her on Twitter, @ERLarson, or Lake County News, @LakeCoNews.