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News

Elizabeth Larson
25 June 2025
25 June 2025

Supervisors begin hearings for 2025-26 recommended budget

LAKEPORT, Calif. — The Board of Supervisors on Tuesday held the first day of hearings with county departments as part of the process to finalize the budget for the new fiscal year. 

The hearings, which will continue on Wednesday, are the prelude to a summer of budget fine-tuning, with the final budget hearing set for Sept. 23.

The cities of Clearlake and Lakeport, by law, are required to finalize and adopt their new fiscal year budget by June 30.

The county, however, has latitude to wait until the fall to finalize its budget.

Under state law, the Board of Supervisors must approve a recommended budget by June 30 and then the final budget must be adopted by Oct. 2.

The hearings began on Tuesday morning in the board chambers, where numerous department heads and staff gathered to hear the budget overview from the County Administrative Office and wait to present their own budget to the board.

Deputy County Administrative Officer Casey Moreno presented the overview to the board.

Moreno’s presentation went over the recommended appropriations, totaling $418,634,111 for all funds, up from $397,175,387 in the 2024-25 fiscal year. 

The county’s primary source of funding by far is the state, which in this year’s budget will provide $143,405,086, or 52%, of the county’s revenue. 

The other revenue sources Moreno outlined in her report are taxes, $45,803,102 or 17% of overall revenue; the federal government, $41,340,384 or 15%; charges for service, $12,199,244 or 4%; other government, $8,674,051 or 3%; operating transfers, $8,231,852 or 3%; interest and rent, $7,885,474 or 3%; licenses and permits, $4,000,039 or 1%; miscellaneous, $1,895,799 or 1%; and fines and penalties, $1,315,358 or 1%.

On the appropriations side, services and supplies amounts to 36% of spending at $158,486,321, followed by salaries and benefits, $127,925,992 or 29%; construction in
progress, $68,505,517 or 16%; other charges, $51,968,824 or 12%; capital assets, $16,115,160 or 4%; and contingencies, $4,696,860 or 1%.

In the general fund, totaling a proposed $99,735,475 for 2025-25, revenues come primarily from taxes, $40,421,110 or 45.57%, with the state providing $22,079,705 or 24.89%, with numerous other smaller revenue sources — including the federal and other government sources, charges for services, interest, rent, concessions, fines, forfeitures, licenses, permits and penalties.

Over half of general fund spending, $58,430,017 or 52.69%, is for salaries and benefits, followed by services and supplies at $34,346,328 or 30.97%, and other expenses including construction in process, capital assets, contingencies and other charges.

Moreno said the budget calls for removing nine general fund positions — from the auditor-controller, information technology, district, attorney, sheriff, probation and planning departments — as part of union negotiations that recently wrapped up and led to a series of raises approved last week. 

She said the county is doing better regarding its employment vacancy rate thanks to removing vacant positions and more aggressive hiring practices. That has reduced the vacancy rate to 13.6% for the general fund and 16% for non general fund positions.

When the county began its series of major salary increases in 2020 and 2021, totaling $21 million, the county’s vacancy rate was around 21 percent. At that time, the County Administrative Office said it was aiming for a vacancy rate of 10% or below.

During her presentation, Moreno had spoken about the goal of having a “structurally balanced’ budget, which means no use of one-time revenue for ongoing expenses.

She also called the recommended 2025-26 budget “perfectly balanced.”

However, during the initial board discussion on the budget overview, District 2 Supervisor Bruno Sabatier pointed out that while staff said the budget was balanced, that did not take into account the board’s votes at its June 17 meeting to approve four-year contracts with nine employee groups, resulting in approximately $5,278,704 in raises. 

Sabatier was the lone dissenting vote on each of those nine votes.

He said that as a result of those raises, the budget won’t be balanced as of July 1, when those raises take effect, meaning the county already is $5 million in the hole as the new fiscal year starts.

Sabatier said the county has to figure out how to tighten budgets to be more realistic, noting they have been “fluffed.”

While the county took out nine positions, he said he’s still seeing as many as 15 positions being added, and the situation is not sustainable in the long run.

Sabatier raised concern about budget figures that he said showed $418 million in spending with only $341 million in revenues. 

Assistant County Administrative Officer Stephen Carter said what balances the budget is an $86 million carryover from the prior year’s budget, which also helps front load the Social Services Department’s budget, which is necessary on an annual basis.

Sabatier also voiced concern about what he said was “a rather large carryover number.”

Updates to proposed department budgets

As the day progressed, the board worked its way through the majority of departments with mostly unanimous votes. 

Departments where budget adjustments are being sought include the Registrar of Voters Office, seeking reclassification of one position and inclusion of a half-time position. Over the last few months Registrar Maria Valadez has been asking the board for additional budget support but so far has not received approval. 

During his presentation, Public Services Director Lars Ewing made what he said were “extraordinary requests” for additional funds for a project at Hammond Park in Nice. That project was estimated at $2.3 million but an additional $300,000 is needed to reach the amount of the lowest bidding contractor. 

The board approved the additional funds for Hammond Park, which Ewing requested come from the parks capital reserve fund, and $100,000 for the design of an enclosure to make the Middletown Pool available year-round. 

The board will continue its hearings on Wednesday at 9 a.m.

Still to be considered are the budget presentations for the Public Works Department, Lake County Sheriff’s Office, the Assessor-Recorder’s Office, and the Board of Supervisors and County Administrative Office, which also covers the civil grand jury and the Public Defender’s Office.

The‌ ‌meeting‌ ‌can‌ ‌be‌ ‌watched‌ ‌live‌ ‌on‌ ‌Channel‌ ‌8, ‌online‌ ‌at‌ ‌https://countyoflake.legistar.com/Calendar.aspx‌‌ and‌ ‌on‌ ‌the‌ ‌county’s‌ ‌Facebook‌ ‌page. ‌Accompanying‌ ‌board‌ ‌documents, ‌the‌ ‌agenda‌ ‌and‌ ‌archived‌ ‌board‌ ‌meeting‌ ‌videos‌ ‌also‌ ‌are‌ ‌available‌ ‌at‌ ‌that‌ ‌link. ‌ ‌

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

The‌ ‌meeting‌ ‌ID‌ ‌is‌ 865 3354 4962, ‌pass code 726865.‌ ‌The meeting also can be accessed via one tap mobile at +16694449171,,86533544962#,,,,*726865#. The meeting can also be accessed via phone at 669 900 6833.

Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it.. Follow her on Twitter, @ERLarson, and on Bluesky, @erlarson.bsky.social. Find Lake County News on the following platforms: Facebook, @LakeCoNews; X, @LakeCoNews; Threads, @lakeconews, and on Bluesky, @lakeconews.bsky.social. 

Elizabeth Larson
25 June 2025
25 June 2025

Lakeport Planning Commission approves Safeway plan to divide shopping center property 

LAKEPORT, Calif. — The Lakeport Planning Commission has approved an application from Safeway to subdivide the property that is the location of its 11th Street shopping center.

The commission took up the matter at its June 11 meeting.

Safeway Inc. applied to the city for a tentative parcel map to divide a lot at the Willow Tree Shopping Center into two separate legal lots located at 1071 and 979 11th St., Associate Planner Victor Fernandez told the commission.

The tentative parcel map divides the 12.15-acre shopping center into two legal parcels. Fernandez said the first parcel is approximately 4.63 acres and the second is 7.52 acres. 

The project’s map shows the grocery store, located on the first parcel, is 46,885 square feet. The second parcel has the remaining commercial space including the CVS store, the Community First Credit Union building and other individual shops, totaling over 73,000 square feet.

That total doesn’t include the 3,500 square feet of the former Perko’s restaurant. 

Commissioner Nathan Maxman pointed out during the discussion that the map of the property still showed the Perko’s restaurant which was demolished in February.

Safeway has owned the shopping center since 2007, taking ownership in August of that year. The Safeway store has been located at the 11th Street site since 1981. 

Albertsons acquired Safeway in January of 2015. City documents showed it was Albertsons who communicated with the city for the Safeway project.

Late last year, Safeway celebrated the Lakeport store’s grand reopening, which included updates to the building and parking lot.

Fernandez’s written report to the commission explained that Safeway is pursuing the subdivision of the property “solely for administrative and operational purposes, such as facilitating financial restructuring, enabling the potential future leasing or sale of individual buildings, and allowing for greater flexibility in the long-term property management strategy.”

Fernandez said Safeway reached out to city staff in September 2024 to begin the process.

Originally, he said the company wanted to pursue dividing the property under a ministerial lot line adjustment. However, it was determined during the process that the property was one legal lot of record, with two addresses.

The changes will ultimately split the Safeway store off from the rest of the property, but nothing else will change — such as the traffic circulation.

What also will remain in place is shared infrastructure, from parking areas to drainage and utilities, Fernandez reported. 

Fernandez said Utilities Director Paul Harris asked for some changes due to long running issues with the city being able to access water meters at the site. As a result, Safeway agreed to add that access to the parcel map.

He said planning staff also concluded that dividing the property is exempt under the California Environmental Quality Act, or CEQA.

Commissioner Mary Claybon offered both motions for the item — first, finding it categorically exempt, and second, that it is in compliance with the Lakeport Zoning and Subdivision Ordinance, consistent with the Subdivision Map Act and aligns with the Lakeport General Plan.

Both motions were approved in 4-0 votes, with Commissioner Mark Mitchell absent.

Fernandez told Lake County News that the Safeway lot division will need to go to the Lakeport City Council for approval before it can be finalized.

“Following the approval of the Tentative Parcel Map, and in accordance with the Subdivision Map Act, the applicant has two years from the Planning Commission approval date to obtain City Council approval of the Final Map. This next phase involves a more technical review, during which the City Engineer and City Surveyor evaluate the Final Map to ensure compliance with all applicable codes and ordinances,” he said in a Tuesday email. 

As of Tuesday, Fernandez said Safeway hadn’t submitted a final parcel map application, “so we do not have an anticipated date for when it will appear before the City Council.”

Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it.. Follow her on Twitter, @ERLarson, and on Bluesky, @erlarson.bsky.social. Find Lake County News on the following platforms: Facebook, @LakeCoNews; X, @LakeCoNews; Threads, @lakeconews, and on Bluesky, @lakeconews.bsky.social. 

LAKE COUNTY NEWS REPORTS
25 June 2025
25 June 2025

Legislators join with Cal State University leadership to announce ‘Sonoma State Commitment’

Senate President pro Tempore Mike McGuire, Sen. Christopher Cabaldon, Assembly Majority Leader Cecilia Aguiar-Curry, Assemblymember Damon Connolly and Assemblymember Chris Rogers have announced the launch of the Sonoma State Commitment initiative, following months of turmoil at Sonoma State University. 

In its announcement, the group said the initiative “marks a turning point for the entire North Bay region, building brighter futures and stronger communities for all.”

“The historic initiative will be the start of the university’s next chapter and long-term turnaround plan, which will provide tens of thousands of students in the North Bay region — and from every corner of the Golden State — with life-changing educational opportunities, brighter economic futures, and stronger communities,” the legislators said in the Tuesday announcement.

The initiative will start with a $45 million state investment which will grow and stabilize SSU’s key programs, and restore some faculty positions and academic degrees at the campus. This transformational funding is embedded in the state budget, which will be voted on later this week by the Legislature before heading to Governor Newsom’s desk for final signature.

Key components of the Sonoma State Commitment include: building a first-of-its-kind career center to connect students and graduates with local employers, launching an aggressive recruitment campaign to expand college access for thousands of students, investing in new academic degrees to address regional and statewide workforce needs, growing SSU’s nursing program to meet the growing demand from patients, regional hospitals and health centers, restoring some key faculty positions to ensure academic success, and helping fund Sonoma State’s Athletics program over the next few years.

The long-term recovery plan is the result of months of collaboration and community engagement with state leaders, and represents a turning point for SSU, which has been the home of the North Bay's brightest minds for generations.

"Sonoma State’s impact on our region is nothing short of profound. SSU has always been — and will always be — a regional powerhouse in higher education and economic activity, changing lives one student at a time. The Sonoma State Commitment will be the catalyst that will deliver on the vision of countless students, dedicated faculty and staff, and community members who have stepped up and spoken out in support of this beloved institution," said Pro Tem McGuire (D-North Coast). "I'm grateful to Senator Cabaldon, Assembly Majority Leader Aguiar-Curry, Assemblymember Connolly, Assemblymember Rogers, and Congressman Thompson, along with CSU Chancellor Garcia, for coming together to solve the impossible and never giving up on SSU. Without a doubt, we have much more work ahead but we all look forward to continue digging deep with the community, students, faculty and alumni to ensure that Sonoma State's future is bright for generations.”

“Over the last several months, we have listened to the SSU community detail many problems and potential solutions throughout multiple public forums and meetings, and today, we are ready to stand behind the Sonoma State Commitment to put these solutions into action. I am impressed by the collaboration of campus stakeholders, faculty, leadership, and most all, SSU students, for speaking up and standing proud for the future of all Seawolves. This wouldn’t have happened without the leadership of the entire North Bay legislative delegation, and I look forward to continue supporting and shaping SSU’s success story for years to come,” said Assemblymember Connolly (D-San Rafael).  

"This $45 million state budget allocation is a big win for Sonoma State University and for the community, students, and faculty who spoke up for their beloved campus. Sonoma State can use this critical infusion of funding to restore at least some of the cuts planned for the coming year and, even more importantly, to chart a path toward becoming an institution more students choose to attend. If my bill, SB 640, is enacted as I hope, Sonoma State and other under-enrolled CSU campuses could receive a boost with the automatic admission of every qualified high school student in the state,” said Sen. Cabaldon (D-Yolo).

“I'm grateful to Pro Tem McGuire and the North Bay legislators for their non-stop support of SSU. This comeback plan serves our students and benefits the legacy of this incredible university that has supported young minds and the North Bay community for so many years," Assemblymember Rogers (D-Santa Rosa) said.

“Higher education opens doors for people wanting to improve themselves. It strengthens our communities throughout California, and has contributed significantly to us becoming the fourth-largest economy in the world,” said Assembly Majority Leader Aguiar-Curry (D-Winters). “As the backbone of higher education for the region, it’s a destination for high school and community college students from Lake, Sonoma, and Napa counties in my Assembly district. I’m looking forward to seeing Sonoma State meet its potential for decades to come.”

"A diverse group of community members and hundreds from the campus community came together to support Sonoma State during these hard times, and I'm grateful for the milestone we've reached today with the Sonoma State Commitment and significant state investment. SSU faculty, staff, and students are the heart of our community, and we will all continue to work together to cement SSU's role leading the future of innovation and education in the Golden State," said U.S. Congressman Mike Thompson (CA-04). 

“The Legislative leaders and SSU leadership have listened carefully to the community and understand that Sonoma State is so much more than a university but also an economic powerhouse, a community hub, and a place where lives are changed for good. We’re excited to launch the Sonoma State Commitment initiative and we can’t thank Pro Tem McGuire and the North Bay Legislative Delegation enough for investing in the future of this state right here at SSU. We’re confident this long-term recovery plan will catapult SSU into its next chapter of prosperity and innovation,” said Sonoma State Interim President Emily Cutrer. 

“Many of our hard-working faculty members have had their worlds turned upside down since the devastating budget cuts were announced this January. For some, this has been the fight of their careers and today, we have been handed a huge win in reclaiming SSU as a storied institution for higher learning. The faculty look forward to working with SSU leadership to ensure this $45 million investment is implemented and key academic positions are reinstated,” said CFA Sonoma State chapter President Emily Asencio. 

"Intercollegiate athletics brings tremendous value to Sonoma State University. These talented student-athletes come here to perform at the highest level while balancing their academic pursuits with the intense demands of collegiate competition. It’s great preparation for their futures and a meaningful way to elevate the visibility of Sonoma State across California while proudly competing on the NCAA’s national stage. I’m especially proud of the many student-athletes who have courageously spoken up since January, sharing just how profoundly losing athletics has impacted them and our campus community. Their voices were instrumental in shaping the path forward and securing the resources that could bring a transformative impact to Sonoma State, allowing intercollegiate athletics to not only continue but truly thrive for years to come — building on an already rich tradition of excellence,” SSU Senior Director of Athletics Dr. Nicole Annaloro said.

“At Redwood Credit Union, we know that local employers like us depend on Sonoma State to grow and thrive. From healthcare to finance, employers want to attract the highly-skilled workforce that SSU helps produce, and students depend on a robust local economy for everything from internships to part-time jobs to their next career move after graduation. I’m thrilled to see the Sonoma State Commitment unveiled this week, knowing what a strong and stable university means to our region’s top employers and growing industry sectors in the North Bay,” said Redwood Credit Union President and CEO Brett Martinez. 

In addition to $45 million to directly support Sonoma State, the state will also allocate an additional $5 million to the CSU system to assist low enrollment campuses with expanded student outreach and recruitment efforts.

In another positive development, the state budget also reflects a rejection of the proposed 7.95% reduction to the CSU budget which was presented earlier this year, restoring an additional $5 million to $6 million in funding directly to SSU, in addition to the $45 million secured for the Sonoma State Commitment.

A third community forum on the future of Sonoma State will be scheduled on campus in the coming weeks, focused on the launch of the Sonoma State Commitment.

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LAKE COUNTY NEWS REPORTS
25 June 2025
25 June 2025

Record 8.9 million people expected to travel domestically July 4 week

A record 72.2 million people are expected to travel at least 50 miles or more from home over the Independence Day holiday period from Saturday, June 28 to Sunday, July 6, according to a new report from AAA.

This represents an increase of 1.7 million domestic travelers compared to last year and 7 million more than in 2019.

More than 8.9 million Californians are expected to travel for the holiday, marking an increase of nearly 182,000 compared to 2024 and over 615,000 from than in 2019. 

AAA’s Independence Day forecast includes two weekends instead of one to better reflect the flow of holiday travelers.

“Summertime is one of the busiest travel seasons of the year, and July 4 is one of the most popular times to get away,” said AAA Mountain West Group spokesperson Doug Johnson. “Following Memorial Day’s record forecast, AAA is seeing strong demand for road trips and air travel over Independence Day week. With the holiday falling on a Friday, travelers have the option of making it a long weekend or taking the entire week to make memories with family and friends.”

Independence day travelers by mode of transportation

By car: AAA projects 61.6 million people will travel by car, a 2.2% increase over last year, and the highest volume on record. This Independence Day holiday period is expected to see an additional 1.3 million road travelers compared to 2024. In California, more than 7 million people will be traveling by car throughout the Golden State.

By air: Air travel is also projected to set a new record. AAA expects 5.84 million travelers will fly to their destinations; that’s 8% of all Independence Day travelers. This year’s projection is a 1.4% increase over the previous record set last Independence Day week of 5.76 million air travelers. In California, more than 1.2 Million residents will be flying this holiday weekend, about 24,000more than in 2024.

By other modes: AAA projects 4.78 million people will travel by bus, train, or cruise, a 7.4% increase over 2024. This year’s number is just shy of the 2019 record of 4.79 million. Cruising is driving the popularity of this category, particularly this time of year, when Alaska cruise season is in full swing. About 593 thousand Californians are expected to travel by bus, train, or cruise.

July 4th travel tips

Save on gas. Use the AAA Mobile App to find the cheapest gas stations along your route, plan your trip, request roadside assistance and more. 

Be road trip ready. Pack an emergency kit and get a pre-trip inspection to prevent common breakdowns like dead batteries and blown tires.

Avoid speeding. Fuel economy peaks around 50 mph on most cars, then drops off as speeds increase. Reducing highway speeds by 5 to 10 mph can increase fuel economy by as much as 14%.

Hit the road early. Wednesday, July 2 and Sunday, July 6 are projected to be the busiest travel days with 12 p.m. to 8 p.m. being the most congested hours. Keep in mind construction, crashes, or severe weather could impact your travel times. 

Stay alert while driving. Avoid distractions while on the road and slow down, move over for emergency vehicles, tow trucks, or disabled vehicles on the side of the road.

LINGZI CHEN
24 June 2025
24 June 2025

Cal Fire unit showcases firefighting helicopters and helitack crews

A Cal Fire event showcasing aerial firefighting resources at Napa County Airport on Monday, June 23, 2025. Photo By Lingzi Chen/Lake County News.

NAPA COUNTY, Calif. — As cool winds blew and aircrafts taxied nearby, Cal Fire’s Sonoma-Lake-Napa Unit showcased its aerial firefighting muscles — helicopters and crews — at the Napa County Airport on Monday. 

Each of the three helicopters on display is based in a different county within the unit: a Cal Fire Hawk — a Sikorsky S-70i in signature red-and-white — with its helitack crew stationed at the Boggs Mountain Helitack Base in Lake County.

Also featured were a Boeing CH-47D Chinook based at the Napa County Airport and a Sikorsky UH-60A+ Blackhawk based at the Charles M. Schulz Sonoma County Airport. 

The later two are contracted with Cal Fire for exclusive aerial firefighting operations this summer into the fall. 

“These aircraft displayed behind me today represent a strategic investment in wildfire preparedness and rapid response," said Unit Chief Matt Ryan in his speech. “Cal Fire has deployed aircraft across California ahead of peak fire conditions to ensure a rapid, aggressive initial attack.”

Ryan highlighted the helicopters’ capability.

Cal Fire Sonoma-Lake-Napa Unit Chief Matt Ryan spoke at the event at Napa County Airport on Monday, June 23, 2025. Photo By Lingzi Chen/Lake County News.

The Fire Hawk is “a state-of-the-art firefighting helicopter as an initial attack with wildfire suppression and rescue operations, Ryan said. It delivers a helitack crew directly to the fire line with 1m000 gallons of water.

The Chinook can carry up to 26,000 pounds, delivers up to 2,300 gallons of water and is qualified for night operations; The Blackhawk has a capacity of 1100 gallons of water designed for rapid deployment.

“These aviation resources are key to achieving one of Cal Fire's core objectives — containing 95% of wildfires at 10 acres or less,” Ryan said. “Together, our air and ground resources enhance our ability to protect the lives, property and natural resources of California.”

As Ryan spoke, firefighters in dark blue uniforms stood against the backdrop of their towering mechanical counterparts.

Since 2021, Napa County “has seen just eight wildfires that exceeded 10 acres in size, an average of just two per year,” said the county’s Board of Supervisors Chair Anne Cottrell during her speech. Over the 10 years prior to 2021, Cottrell said, Napa had 46 wildfires over 10 acres — nearly five a year.

The reduction in wildfire was “remarkable” and “a testament to Cal Fire’s rapid response strategy,” she said. 

The unit’s Public Information Officer Jason Clay told Lake County News that aircraft or helicopters are “strategically positioned throughout California” to be able to respond to any fire across the state within 20 minutes. 

Equipment at the Cal Fire event showcasing aerial firefighting resources at Napa County Airport on Monday, June 23, 2025. Photo By Lingzi Chen/Lake County News.


The Fire Hawk and helitack team based in Lake County

It took the Fire Hawk 15 minutes to fly the helitack team from their base in Boggs Mountain, Lake County to the event in Napa, according to the crew. By car, the trip would have taken two hours. 

For some firefighters there, the commute to work is even longer. 

Jake Gallant, a firefighter who lives in San Luis Obispo, said he has a four-hour drive to Lake County. “I have the farthest commute,” he said with a laugh. 

Gallant explained that their shifts are “three days on, four days off” so that he does not have to make the drive every day. 

“I mean, it’s actually pretty common in Cal Fire for people to live further away from where they work,” he said. “I wouldn't get this opportunity to work on a Cal Fire Hawk closer to where I live. So it’s worth it to me.”

Firefighters in bright yellow uniforms getting ready for dispatch from the event on Monday, June 23, 2025. Photo By Lingzi Chen/Lake County News.


Gallant has spent three of his seven years in firefighting on the helicopter crew. “I love it. It’s the best job I ever had,” he said. 

Before firefighting, Gallant said he had done many jobs in construction, moving — mostly manual labor. 

“Well, they do a lot of manual labor,” Gallant said of transitioning to firefighting. “And I’m pretty good at that, so might as well do something cool with it.”

This year, the heliteck crew has attended and landed for 13 fires so far, according to Fire Captain Chris Batey who has been in firefighting since 2001 and came to the base four years ago.

Speaking of the fire trends throughout the year, “We get highs and lows,” Batey said. “Last year we started off much busier than this year — we went straight into a couple fires that burned down 10,000 acres each.”

“This year, it’s been really slow — small fires, not doing a whole lot — which is the way we like it; it’s way better,” Batey said.

In 2024, the Boggs Mountain helitack team landed and took action on 54 fires, Batey and Gallant recalled. “There's probably 100 more that we started to but they didn't need us, or we were canceled,” Gallant added.

Batey told Lake County News that it costs about $7,000 an hour for the Fire Hawk and crew to work on an ongoing fire, covered by the unit’s operating budget. 

Fire Hawk helicopter and crew of Boggs Mountain Helitack preparing to leave the event for a fire emergency in Contra Costa County on Monday, June 23, 2025. Photo By Lingzi Chen/Lake County News.


This Fire Hawk-Sikorsky S-70i is the only helicopter at the helitack base right now, according to Gallant. The aircraft and the crew, while showing up in the event, were actively on call. 

“So if there is a fire, we will leave,” Batey said. 

For the pilot, Michael Schanley, firefighting from the sky has “a tremendous amount of variables — whether it’s the wind, the heat.” 

Schanley has been with Cal Fire for six years of his total of 38 years primarily for aerial firefighting, having previously worked as a contractor. 

He likened the job to a boxing match. “I have an opponent in a fire, and the fire doesn't just wait for me to go make another drop,” Schanley said in explaining his theory. 

“The fire is doing its thing and we're chasing it right?” he said. “We chased it down. And then at some point, we kind of reached an equilibrium, and then we started getting the upper hand — getting a little head of the fire, and we're doing our part. And then eventually it goes out …”

“Mike, I think we got a job at Contra Costa,” a crew member interrupted.

The conversation ended. Quickly, dark blue uniforms were swapped for bright yellow as the Fire Hawk’s engine started humming, rotors spinning, kicking up dust on the ramp before taking off.

Four minutes later, they arrived at the fire scene. 

Email staff reporter Lingzi Chen at This email address is being protected from spambots. You need JavaScript enabled to view it.. 

The Cal Fire Hawk Sikorsky S-70i took off for a fire emergency in Contra Costa County on Monday, June 23, 2025. Photo By Lingzi Chen/Lake County News.

Elizabeth Larson
24 June 2025
24 June 2025

Clearlake City Council approves $83 million budget, largest in city history

LAKE COUNTY, Calif. — The Clearlake City Council on Thursday wrapped up work on the new fiscal year budget, the largest in the city’s 45-year history.

The council held a 2025-26 budget workshop Thursday evening, just ahead of its regular meeting, to go over the numbers with staff. 

The budget the council eventually approved included $83,149,510 in expenses and $81,034,188 in revenue.

City Manager Alan Flora told Lake County News that the 2025-26 budget is the largest in the city’s history, and is significantly larger than in past years. 

Compare this year’s budget, at nearly $84 million in appropriations, to last year’s, at $50 million. 

“Our General Fund has not really increased, this is the result of grant funds for various projects,” said Flora.

For this new fiscal year, Flora said the city budget includes more than $45 million in grant funds to support the Clearlake Apartments project near Adventist Health Clear Lake Hospital.

“The state has provided these grant funds to the city to pass through to the housing developer,” Flora said.

Despite being the largest budget Clearlake has had to date, Flora said in his budget message on the city’s Open Gov page that, “Revenue constraints require us to take a more conservative approach to spending, prioritizing essential services and carefully evaluating discretionary expenditures.”

The city is prioritizing core services such as public safety, road maintenance and essential municipal operations, all of which Flora said remain fully funded.

The city is taking a strategic approach to spending reductions by identifying efficiencies across departments to minimize costs while maintaining service quality, Flora said in his message.

Meantime, the city remains committed to key infrastructure projects — which Flora said include road rehabilitation and downtown revitalization efforts — while maximizing grand funding from state and federal sources. 

During the workshop, staff outlined the main capital projects for the coming year, which total approximately $15,783,013.

They include: 

• Arrowhead Burns Valley Road Rehabilitation Project: $5,483,774.
• Burns Valley Sports Complex: $9,116,279.
• Dam Road roundabout: $483,925.
• Austin Park Skate Park: $400,000.
• Clearlake Police Department radio/communication infrastructure: $210,675.
• Airport Road Project, $88,360.

“While fiscal prudence is necessary, our guiding principle remains progress and stability for Clearlake’s residents. Through careful planning and resourceful decision-making, we will continue improving our city’s livability while ensuring long-term financial sustainability,” Flora wrote.

Matt Pressey, the city’s acting finance director, told the council that the state has seen strong growth over the past five years, including steady growth in its revenues. He referred to California surpassing Japan last year to become the world's fourth-largest economy. However, there is now limited economic growth.

On the city level, Pressey reported that the economy is stable but not growing. Property tax revenues are seeing a slight increase while sales tax revenues are dropping slightly. Population growth is on a stable trend.

Flora told the council that the budget is not “structurally sound,” which means that they are using one-time funding for ongoing expenses.

He said that’s not where they want to be, explaining that the city is relying heavily on using other funding sources to support expenses in the general fund which they wouldn’t have to do if they hadn’t a healthier economy.

As a result, he’s implemented a general fund hiring freeze for jobs not in the background check process.

The city has had significant increases in retirement and insurance costs this year. In spite of those increases, Flora said the budget still shows reductions in all general fund budget units.

During the regular meeting, which lasted just under 45 minutes, the council unanimously approved the new fiscal year budget with no additional discussion.

Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it.. Follow her on Twitter, @ERLarson, and on Bluesky, @erlarson.bsky.social. Find Lake County News on the following platforms: Facebook, @LakeCoNews; X, @LakeCoNews; Threads, @lakeconews, and on Bluesky, @lakeconews.bsky.social. 

LAKE COUNTY NEWS REPORTS
24 June 2025
24 June 2025

Lake Area Planning Council seeks public input for State Route 53 Corridor safety improvements study

LAKE COUNTY, Calif. — The Lake Area Planning Council, or Lake APC, is inviting residents of Clearlake and the surrounding areas to participate in an important study focused on enhancing transportation safety along the State Route 53 corridor.

The study will determine public transportation needs and priorities along Highway 53 within the city limits of Clearlake.

Lake APC said public participation is a key component in the study, and community members’ insights are critical for securing future grant funding for transportation safety improvements in the area.

To share your comments and help shape the future of Highway 53, residents are encouraged to complete the online survey and explore the interactive project map by July 16.

Fill out the survey here.

Community members may also complete paper surveys, available at the following designated drop-box locations:

• Clearlake City Hall, 14050 Olympic Drive.
• Lake Transit Authority, 9240 Highway 53, Lower Lake.
• Lake County Social Services Department, 15975 Anderson Ranch Parkway, Lower Lake.

For more information about the SR 53 Corridor Project Prioritization Study, contact John Speka of the Lake Area Planning Council at This email address is being protected from spambots. You need JavaScript enabled to view it. or call 707-263-7799.

Pablo Moyano Fernández, Washington University in St. Louis
24 June 2025
24 June 2025

To spur the construction of affordable, resilient homes, the future is concrete

A modular, precast system of concrete ‘rings’ can be connected in different ways to build a range of models of energy-efficient homes. Pablo Moyano Fernández, CC BY-SA

Wood is, by far, the most common material used in the U.S. for single-family home construction.

But wood construction isn’t engineered for long-term durability, and it often underperforms, particularly in the face of increasingly common extreme weather events.

In response to these challenges, I believe mass-produced concrete homes can offer affordable, resilient housing in the U.S. By leveraging the latest innovations of the precast concrete industry, this type of homebuilding can meet the needs of a changing world.

Wood’s rise to power

Over 90% of the new homes built in the U.S. rely on wood framing.

Wood has deep historical roots as a building material in the U.S., dating back to the earliest European settlers who constructed shelters using the abundant native timber. One of the most recognizable typologies was the log cabin, built from large tree trunks notched at the corners for structural stability.

A mother holds her child in the front doorway of their log cabin home.
Log cabins were popular in the U.S. during the 18th and 19th centuries. Heritage Art/Heritage Images via Getty Images

In the 1830s, wood construction underwent a significant shift with the introduction of balloon framing. This system used standardized, sawed lumber and mass-produced nails, allowing much smaller wood components to replace the earlier heavy timber frames. It could be assembled by unskilled labor using simple tools, making it both accessible and economical.

In the early 20th century, balloon framing evolved into platform framing, which became the dominant method. By using shorter lumber lengths, platform framing allowed each floor to be built as a separate working platform, simplifying construction and improving its efficiency.

The proliferation and evolution of wood construction helped shape the architectural and cultural identity of the nation. For centuries, wood-framed houses have defined the American idea of home – so much so that, even today, when Americans imagine a house, they typically envision one built of wood.

A row of half-constructed homes surrounded by piles of dirt.
A suburban housing development from the 1950s being built with platform framing. H. Armstrong Roberts/ClassicStock via Getty Images

Today, light-frame wood construction dominates the U.S. residential market.

Wood is relatively affordable and readily available, offering a cost-effective solution for homebuilding. Contractors are familiar with wood construction techniques. In addition, building codes and regulations have long been tailored to wood-frame systems, further reinforcing their prevalence in the housing industry.

Despite its advantages, wood light-frame construction presents several important limitations. Wood is vulnerable to fire. And in hurricane- and tornado-prone regions, wood-framed homes can be damaged or destroyed.

Wood is also highly susceptible to water-related issues, such as swelling, warping and structural deterioration caused by leaks or flooding. Vulnerability to termites, mold, rot and mildew further compromise the longevity and safety of wood-framed structures, especially in humid or poorly ventilated environments.

The case for concrete

Meanwhile, concrete has revolutionized architecture and engineering over the past century. In my academic work, I’ve studied, written and taught about the material’s many advantages.

The material offers unmatched strength and durability, while also allowing design flexibility and versatility. It’s low-cost and low-maintenance, and it has high thermal mass properties, which refers to the material’s ability to absorb and store heat during the day, and slowly release it during the cooler nights. This can lower heating and cooling costs.

Properly designed concrete enclosures offer exceptional performance against a wide range of hazards. Concrete can withstand fire, flooding, mold, insect infestation, earthquakes, hail, hurricanes and tornadoes.

It’s commonly used for home construction in many parts of the world, such as Europe, Japan, Mexico, Brazil and Argentina, as well as India and other parts of Southeast Asia.

However, despite their multiple benefits, concrete single-family homes are rare in the U.S.

That’s because most concrete structures are built using a process called cast-in-place. In this technique, the concrete is formed and poured directly at the construction site. The method relies on built-in-place molds. After the concrete is cast and cured over several days, the formwork is removed.

This process is labor-intensive and time-consuming, and it often produces considerable waste. This is particularly an issue in the U.S., where labor is more expensive than in other parts of the world. The material and labor cost can be as high as 35% to 60% of the total construction cost.

Portland cement, the binding agent in concrete, requires significant energy to produce, resulting in considerable carbon dioxide emissions. However, this environmental cost is often offset by concrete’s durability and long service life.

Concrete’s design flexibility and structural integrity make it particularly effective for large-scale structures. So in the U.S., you’ll see it used for large commercial buildings, skyscrapers and most highways, bridges, dams and other critical infrastructure projects.

But when it comes to single-family homes, cast-in-place concrete poses challenges to contractors. There are the higher initial construction costs, along with a lack of subcontractor expertise. For these reasons, most builders and contractors stick with what they know: the wood frame.

A new model for home construction

Precast concrete, however, offers a promising alternative.

Unlike cast-in-place concrete, precast systems allow for off-site manufacturing under controlled conditions. This improves the quality of the structure, while also reducing waste and labor.

The CRETE House, a prototype I worked on in 2017 alongside a team at Washington University in St. Louis, showed the advantages of a precast home construction.

To build the precast concrete home, we used ultra-high-performance concrete, one of the latest advances in the concrete industry. Compared with conventional concrete, it’s about six times stronger, virtually impermeable and more resistant to freeze-thaw cycles. Ultra-high-performance concrete can last several hundred years.

The strength of the CRETE House was tested by shooting a piece of wood at 120 mph (193 kph) to simulate flying debris from an F5 tornado. It was unable to breach the wall, which was only 2 inches (5.1 centimeters) thick.

The wall of the CRETE House was able to withstand a piece of wood fired at 120 mph (193 kph).

Building on the success of the CRETE House, I designed the Compact House as a solution for affordable, resilient housing. The house consists of a modular, precast concrete system of “rings” that can be connected to form the entire structure – floors, walls and roofs – creating airtight, energy-efficient homes. A series of different rings can be chosen from a catalog to deliver different models that can range in size from 270 to 990 square feet (25 to 84 square meters).

The precast rings can be transported on flatbed trailers and assembled into a unit in a single day, drastically reducing on-site labor, time and cost.

Since they’re built using durable concrete forms, the house can be easily mass-produced. When precast concrete homes are mass-produced, the cost can be competitive with traditional wood-framed homes. Furthermore, the homes are designed to last far beyond 100 years – much longer than typical wood structures – while significantly lowering utility bills, maintenance expenses and insurance premiums.

The project is also envisioned as an open-source design. This means that the molds – which are expensive – are available for any precast producer to use and modify.

A computer graphic showing a prototype of a small, concrete home.
The Compact House is made using ultra-high-performance concrete. Pablo Moyano Fernández, CC BY-SA

Leveraging a network that’s already in place

Two key limitations of precast concrete construction are the size and weight of the components and the distance to the project site.

Precast elements must comply with standard transportation regulations, which impose restrictions on both size and weight in order to pass under bridges and prevent road damage. As a result, components are typically limited to dimensions that can be safely and legally transported by truck. Each of the Compact House’s pieces are small enough to be transported in standard trailers.

Additionally, transportation costs become a major factor beyond a certain range. In general, the practical delivery radius from a precast plant to a construction site is 500 miles (805 kilometers). Anything beyond that becomes economically unfeasible.

However, the infrastructure to build precast concrete homes is already largely in place. Since precast concrete is often used for office buildings, schools, parking complexes and large apartments buildings, there’s already an extensive national network of manufacturing plants capable of producing and delivering components within that 500-mile radius.

There are other approaches to build homes with concrete: Homes can use concrete masonry units, which are similar to cinder blocks. This is a common technique around the world. Insulated concrete forms involve rigid foam blocks that are stacked like Lego bricks and are then filled with poured concrete, creating a structure with built-in insulation. And there’s even 3D-printed concrete, a rapidly evolving technology that is in its early stages of development.

However, none of these use precast concrete modules – the rings in my prototypes – and therefore require substantially longer on-site time and labor.

To me, precast concrete homes offer a compelling vision for the future of affordable housing. They signal a generational shift away from short-term construction and toward long-term value – redefining what it means to build for resilience, efficiency and equity in housing.

A bird's-eye view of a computer-generated neighborhood featuring plots of land with multiple concrete homes located on them.
An image of North St. Louis, taken from Google Earth, showing how vacant land can be repurposed using precast concrete homes. Pablo Moyano Fernández, CC BY-SA

This article is part of a series centered on envisioning ways to deal with the housing crisis.The Conversation

Pablo Moyano Fernández, Assistant Professor of Architecture, Washington University in St. Louis

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

LINGZI CHEN
23 June 2025
23 June 2025

Supervisors to discuss how to spend over $400 million in annual budget hearings

Chart by Lingzi Chen/Lake County News.


LAKE COUNTY, Calif. — The Board of Supervisors this week will hold two days of budget hearings to discuss where and how to allocate more than $400 million in county funds.

The‌ ‌board will meet beginning ‌at‌ ‌9‌ a.m. on both Tuesday, June 24 and Wednesday, June 25, in the board chambers on the first floor of the Lake County Courthouse, 255 N. Forbes St., Lakeport.

The‌ ‌meeting‌ ‌can‌ ‌be‌ ‌watched‌ ‌live‌ ‌on‌ ‌Channel‌ ‌8, ‌online‌ ‌at‌ ‌https://countyoflake.legistar.com/Calendar.aspx‌‌ and‌ ‌on‌ ‌the‌ ‌county’s‌ ‌Facebook‌ ‌page. ‌Accompanying‌ ‌board‌ ‌documents, ‌the‌ ‌agenda‌ ‌and‌ ‌archived‌ ‌board‌ ‌meeting‌ ‌videos‌ ‌also‌ ‌are‌ ‌available‌ ‌at‌ ‌that‌ ‌link. ‌ ‌

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

The‌ ‌meeting‌ ‌ID‌ ‌is‌ 865 3354 4962, ‌pass code 726865.‌ ‌The meeting also can be accessed via one tap mobile at +16694449171,,86533544962#,,,,*726865#. The meeting can also be accessed via phone at 669 900 6833.

Over the two days, the board will consider the recommended budget for fiscal year 2025-26. 

According to the staff memo, the final budget must be approved by June 30 and adopted by Oct. 2. Final adoption will take place following public hearings currently scheduled for Sept. 23. 

For the upcoming fiscal year, recommended appropriations for all funds total $418,634,111 — an increase of $21,458,724 from the previous year, according to the staff memo. 

The increase, the staff memo said, is attributable to additional appropriations to a range of special revenue funds such as $19.5 million to Behavioral Health Services, $2 million to roads, $3.4 million to Spring Valley,  $2.7 million to Northwest Regional Wastewater System, and $9 million to public safety facilities.

Out of the total amount, the county’s General Fund appropriations take up about 24% — just under $100 million at $99,735,475 — showing a decrease of $1.54 million from the previous year's adopted budget.

According to the data presented in the memo, General Fund appropriations have increased in dollar amount over the past seven years. 

However, the proposed allocation for fiscal year 2025-26, if approved, would mark the first decrease in eight years.

The staff memo attributes the $1.5 million decrease to economic uncertainty, accommodating increases in Memorandum of Understanding, or MOUs, and projects that may be allocated one-time funding at final budget. 

Last week, the Board of Supervisors approved at least $5 million in raises for county employees as part of the MOUs. 

The staff memo identifies the primary sources of discretionary revenue for the General Fund, with property tax as the largest single source “by a great margin."

“General Fund appropriations ebb and flow, in direct relationship to General Fund discretionary revenues available,” the staff memo said. “Property tax revenues have steadily increased over time.”

Anticipated property tax revenue for FY 2024 - 25 is shown as $33.2 million, with budgeted revenue for FY 2025 - 26 projected at $34.5 million.

Other revenues include sales tax received through May 2025 total $8.1 million, transient occupancy tax revenues $0.8 million and cannabis tax $2.7 million. 

Email staff writer Lingzi Chen at This email address is being protected from spambots. You need JavaScript enabled to view it.. 

Elizabeth Larson
23 June 2025
23 June 2025

Helping Paws: New dogs this week

LAKE COUNTY, Calif. — Lake County Animal Care and Control’s kennels are once again filled with animals needing homes.

The dogs available for adoption this week include mixes of Chihuahua, German shepherd, husky, Labrador Retriever, pit bull terrier, terrier and shepherd

Dogs that are adopted from Lake County Animal Care and Control are either neutered or spayed, microchipped and, if old enough, given a rabies shot and county license before being released to their new owner. License fees do not apply to residents of the cities of Lakeport or Clearlake.

Those dogs and the others shown on this page at the Lake County Animal Care and Control shelter have been cleared for adoption.

Call Lake County Animal Care and Control at 707-263-0278 or visit the shelter online for information on visiting or adopting.

The shelter is located at 4949 Helbush in Lakeport.

Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it.. Follow her on Twitter, @ERLarson, and on Bluesky, @erlarson.bsky.social. Find Lake County News on the following platforms: Facebook, @LakeCoNews; X, @LakeCoNews; Threads, @lakeconews, and on Bluesky, @lakeconews.bsky.social. 

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    Travis Shoemaker
    23 June 2025
    23 June 2025

    Telling the story of the nation’s smallest businesses

    The nation’s 29.8 million nonemployer businesses — those with no paid employees and are subject to federal income tax — made up $1.7 trillion or about 6.8% of the 2022 U.S. economy, according to the 2022 Nonemployer Statistics, or NES, recently released by the U.S. Census Bureau.

    Most nonemployers are self-employed individuals operating small unincorporated businesses, which may be the owner’s principal source of income.

    NES can be used to uncover facts about U.S. nonemployers, like how California had the largest number of nonemployer establishments (3,502,950) but ranked 16th per capita, that Texas had the most nonemployer construction establishments (376,379) or that Delaware nonemployers had the highest average receipts ($85,950) in the country.

    In contrast, there were 8.3 million U.S. employer businesses (those with paid employees) in 2022, according to the Census Bureau’s 2022 County Business Patterns.

    State nonemployer rates

    The prevalence of nonemployer establishments varied widely across the country in 2022. A comparison of NES data and population estimates found that:

    • Florida had the greatest per capita rate of nonemployer establishments, boasting 13.3 such establishments for every 100 people. Wyoming and Georgia tied for a distant second (with 10.8 each), followed by Texas, Vermont, and Colorado (10.0 each).
    • West Virginia was the state with the lowest per capita rate, with 5.3 nonemployer establishments per 100 people.
    • California, which had the most nonemployer establishments, was home to nearly 500,000 more such entities than second place Texas (3,023,525), with Florida (2,968,201) rounding out the top three.
    • North Dakota had the lowest total number (59,106) of nonemployer establishments, followed close behind by Alaska (60,471). While low population states Wyoming and Vermont also had small numbers of nonemployer establishments (62,751 and 64,930, respectively), each boasted a relatively high per capita rate — 10.8 and 10.0 per 100 people, respectively — compared to the national average of 8.9.

    Industry leaders

    Nonemployer Statistics covers 18 economic sectors as defined by the 2022 North American Industry Classification System or NAICS (Table 1). The three largest sectors in 2022 by number of establishments were Professional, Scientific, and Technical Services (4,013,209); Transportation and Warehousing (3,854,720); and Real Estate, Rental and Leasing (3,145,367).

    The Real Estate, Rental and Leasing sector had the largest receipts among nonemployers in 2022, bringing in 20.0% of total nonemployer receipts ($344.7 billion) despite making up just 10.6% of the nation’s nonemployer establishments.

    The Construction sector made up 9.6% of 2022 nonemployer establishments with 2,875,590 businesses. These firms shoveled up 13.8% of the U.S. total nonemployer receipts with $238.0 billion in Construction nonemployer receipts.

    The third-place sector was Professional, Scientific, and Technical Services, representing a 13.5% share of U.S. nonemployers with 4,013,209 nonemployer establishments and a commensurate 13.3% share ($229.4 billion) of total U.S. nonemployer receipts in 2022.

    Small business, big receipts

    The Census Bureau’s NES also sorts nonemployers into 11 receipt-size categories ranging from less than $5,000 to more than $5 million.

    The Finance and Insurance sector had 542 nonemployer establishments with receipt values exceeding $5 million, constituting more than half the total nonemployers with receipts that large. In second place: Arts, Entertainment, and Recreation which had 322 nonemployer establishments with $5 million or more in receipts.

    Four other sectors that had nonemployer establishments with receipts exceeding $5 million in 2022 were Transportation and Warehousing (40); Wholesale Trade (29); Retail Trade (25); and Professional, Scientific, and Technical Services (5).

    Travis Shoemaker is a writer/editor for America Counts in the Census Bureau’s Communications Directorate.

    Jennifer D. Oliva, Indiana University
    23 June 2025
    23 June 2025

    How artificial intelligence controls your health insurance coverage

    Evidence suggests that insurance companies use AI to delay or limit health care that patients need. FatCameraE+ via Getty Images

    Over the past decade, health insurance companies have increasingly embraced the use of artificial intelligence algorithms. Unlike doctors and hospitals, which use AI to help diagnose and treat patients, health insurers use these algorithms to decide whether to pay for health care treatments and services that are recommended by a given patient’s physicians.

    One of the most common examples is prior authorization, which is when your doctor needs to receive payment approval from your insurance company before providing you care. Many insurers use an algorithm to decide whether the requested care is “medically necessary” and should be covered.

    These AI systems also help insurers decide how much care a patient is entitled to — for example, how many days of hospital care a patient can receive after surgery.

    If an insurer declines to pay for a treatment your doctor recommends, you usually have three options. You can try to appeal the decision, but that process can take a lot of time, money and expert help. Only 1 in 500 claim denials are appealed. You can agree to a different treatment that your insurer will cover. Or you can pay for the recommended treatment yourself, which is often not realistic because of high health care costs.

    As a legal scholar who studies health law and policy, I’m concerned about how insurance algorithms affect people’s health. Like with AI algorithms used by doctors and hospitals, these tools can potentially improve care and reduce costs. Insurers say that AI helps them make quick, safe decisions about what care is necessary and avoids wasteful or harmful treatments.

    But there’s strong evidence that the opposite can be true. These systems are sometimes used to delay or deny care that should be covered, all in the name of saving money.

    A pattern of withholding care

    Presumably, companies feed a patient’s health care records and other relevant information into health care coverage algorithms and compare that information with current medical standards of care to decide whether to cover the patient’s claim. However, insurers have refused to disclose how these algorithms work in making such decisions, so it is impossible to say exactly how they operate in practice.

    Using AI to review coverage saves insurers time and resources, especially because it means fewer medical professionals are needed to review each case. But the financial benefit to insurers doesn’t stop there. If an AI system quickly denies a valid claim, and the patient appeals, that appeal process can take years. If the patient is seriously ill and expected to die soon, the insurance company might save money simply by dragging out the process in the hope that the patient dies before the case is resolved.

    Insurers say that if they decline to cover a medical intervention, patients can pay for it out of pocket.

    This creates the disturbing possibility that insurers might use algorithms to withhold care for expensive, long-term or terminal health problems , such as chronic or other debilitating disabilities. One reporter put it bluntly: “Many older adults who spent their lives paying into Medicare now face amputation or cancer and are forced to either pay for care themselves or go without.”

    Research supports this concern – patients with chronic illnesses are more likely to be denied coverage and suffer as a result. In addition, Black and Hispanic people and those of other nonwhite ethnicities, as well as people who identify as lesbian, gay, bisexual or transgender, are more likely to experience claims denials. Some evidence also suggests that prior authorization may increase rather than decrease health care system costs.

    Insurers argue that patients can always pay for any treatment themselves, so they’re not really being denied care. But this argument ignores reality. These decisions have serious health consequences, especially when people can’t afford the care they need.

    Moving toward regulation

    Unlike medical algorithms, insurance AI tools are largely unregulated. They don’t have to go through Food and Drug Administration review, and insurance companies often say their algorithms are trade secrets.

    That means there’s no public information about how these tools make decisions, and there’s no outside testing to see whether they’re safe, fair or effective. No peer-reviewed studies exist to show how well they actually work in the real world.

    There does seem to be some momentum for change. The Centers for Medicare & Medicaid Services, or CMS, which is the federal agency in charge of Medicare and Medicaid, recently announced that insurers in Medicare Advantage plans must base decisions on the needs of individual patients – not just on generic criteria. But these rules still let insurers create their own decision-making standards, and they still don’t require any outside testing to prove their systems work before using them. Plus, federal rules can only regulate federal public health programs like Medicare. They do not apply to private insurers who do not provide federal health program coverage.

    Some states, including Colorado, Georgia, Florida, Maine and Texas, have proposed laws to rein in insurance AI. A few have passed new laws, including a 2024 California statute that requires a licensed physician to supervise the use of insurance coverage algorithms.

    But most state laws suffer from the same weaknesses as the new CMS rule. They leave too much control in the hands of insurers to decide how to define “medical necessity” and in what contexts to use algorithms for coverage decisions. They also don’t require those algorithms to be reviewed by neutral experts before use. And even strong state laws wouldn’t be enough, because states generally can’t regulate Medicare or insurers that operate outside their borders.

    A role for the FDA

    In the view of many health law experts, the gap between insurers’ actions and patient needs has become so wide that regulating health care coverage algorithms is now imperative. As I argue in an essay to be published in the Indiana Law Journal, the FDA is well positioned to do so.

    The FDA is staffed with medical experts who have the capability to evaluate insurance algorithms before they are used to make coverage decisions. The agency already reviews many medical AI tools for safety and effectiveness. FDA oversight would also provide a uniform, national regulatory scheme instead of a patchwork of rules across the country.

    Some people argue that the FDA’s power here is limited. For the purposes of FDA regulation, a medical device is defined as an instrument “intended for use in the diagnosis of disease or other conditions, or in the cure, mitigation, treatment, or prevention of disease.” Because health insurance algorithms are not used to diagnose, treat or prevent disease, Congress may need to amend the definition of a medical device before the FDA can regulate those algorithms.

    If the FDA’s current authority isn’t enough to cover insurance algorithms, Congress could change the law to give it that power. Meanwhile, CMS and state governments could require independent testing of these algorithms for safety, accuracy and fairness. That might also push insurers to support a single national standard – like FDA regulation – instead of facing a patchwork of rules across the country.

    The move toward regulating how health insurers use AI in determining coverage has clearly begun, but it is still awaiting a robust push. Patients’ lives are literally on the line.The Conversation

    Jennifer D. Oliva, Professor of Law, Indiana University

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

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