Trump’s Proposed Tariffs, Especially on China and Mexico, Could Hit California Hard

Levi Sumagaysay / Wednesday, Nov. 13, 2024 @ 7:42 a.m. / Sacramento

Minette Lontsie, CC BY-SA 4.0, via Wikimedia Commons

A range of experts, from Nobel Prize-winning economists to an internet-famous menswear writer, have a message for Americans who voted for Donald Trump based on his promises to bring down prices: This likely won’t go how you want.

Some voters cited the cost of living as a factor in their decision to elect Trump to a second term as president. But with inflation actually starting to ease, his proposed tariffs, which the president-elect has called the “most beautiful word in the dictionary,” could actually raise prices again.

While some experts don’t think more tariffs are a bad idea, the majority of economists and other experts who spoke with CalMatters echoed 23 Nobel laureates who warned that Trump’s policies would be worse for the economy than the ones proposed by Vice President Kamala Harris. Those economists wrote a letter last month calling Harris’ economic agenda “vastly superior” to Trump’s, and mentioned tariffs as one reason.

“His policies, including high tariffs even on goods from our friends and allies and regressive tax cuts for corporations and individuals, will lead to higher prices, larger deficits, and greater inequality,” the economists wrote.

Businesses that import goods into the country must pay the tariffs. They tend to pass on their increased costs to consumers, with some executives recently promising to do just that during their earnings calls. So economists largely view tariffs as a tax, especially on the lowest- and middle-income families in the nation.

While tariffs could raise prices for all U.S. consumers, California could feel the brunt of the impact in part because of the countries Trump singled out during his campaign: China and Mexico. Those two countries accounted for 40% of the state’s imports in 2023.

“The port and logistics complex in Southern California is a very important part of the economy, and directly tied to the countries he threatened,” said Stephen Levy, an economist and director of the Center for Continuing Study of the California Economy, an independent, private research organization in Silicon Valley.

Trump imposed tariffs during his first presidential term, and President Joe Biden maintained some of them. During his campaign this time around, Trump said he intends to impose tariffs of 10% to 20% on all imports, and has mentioned even higher tariffs on goods from China (60%) and Mexico (100% to 200% on cars).

Such tariffs could exacerbate California’s already high cost of living and raise the prices of cars, technology and electronic products, medical devices, groceries and more. Also, as the state saw during Trump’s first term — which included a trade war, with countries retaliating with their own tariffs on U.S. exports — California’s agricultural industry is likely to feel the effects. Trump’s proposed tariffs could also have an adverse effect on the state’s ports, which are among the nation’s busiest.

And all of those outcomes could have a ripple effect on jobs in the state, including those in agriculture, trade and manufacturing.

What the state’s ports expect

Trade experts say it’s too early to tell how the state’s ports could be affected, though some of them also said they expect a near-term surge in activity as businesses brace themselves for tariffs by importing more goods now.

“Long Beach and Los Angeles are two of the largest ports in the U.S.,” said Jonathan Aronson, a professor of communication and international relations at the University of Southern California, who studies trade and the international political economy. “Their traffic would presumably slow in both directions” if Trump imposes tariffs, Aronson said. Like other experts, though, he wondered if the president-elect is using the threat of tariffs as a negotiating tactic — say, to pressure Mexico into doing more to limit immigration into the United States.

The most recent available data for the Port of Los Angeles, which is the busiest in North America and handles nearly 10% of all U.S. imports, shows that trade activity rose nearly 19% at the port in September from the same month a year ago. September imports totaled $27.9 billion, a 20% increase year over year. There’s a chance those numbers could head the opposite direction as a result of tariffs.

“Significant increases in tariffs, and the possibility of retaliatory tariffs, could have a significant impact on traffic — and jobs — at the port,” said Phillip Sanfield, a spokesperson. “We’re monitoring developments closely.”

“As a West Coast seaport, our primary trading partner is Asia, and what’s happening right now is that retailers are expecting a short-term shipping surge in advance of new tariffs.”
— Robert Bernardo, spokesperson, Port of Oakland

The Port of Los Angeles says nearly 1 million California jobs are related to trade at that port.

The Port of Long Beach handles about 3% of all U.S. imports and has about 575,000 Southern California jobs tied to trade. Chief Executive Mario Cordero said, through a spokesperson, that he is waiting to see what trade policies Trump actually will adopt: “At this point we expect that strong consumer demand will continue to drive cargo shipments upward in the near term.”

The Port of Oakland, whose trade-related jobs at both the airport and seaport number about 98,000, also expects a traffic boost at first. Spokesperson Robert Bernardo: “As a West Coast seaport, our primary trading partner is Asia, and what’s happening right now is that retailers are expecting a short-term shipping surge in advance of new tariffs.”

Mike Jacob is the president of the Pacific Merchant Shipping Association, a not-for-profit maritime trade association whose members facilitate trade. They include ocean carriers, marine terminal operators and more.

Jacob, too, said he is expecting trade activity to pick up ahead of whatever tariffs Trump imposes: “Given the lack of understanding of the timing, scope and scale (of the tariffs), you’re more likely than not to move cargo earlier.”

As a result of tariffs during Trump’s first term, Jacob said there was “a small bump in cargo back in 2019 that resulted in additional impacts on our logistics chain.” He said after that experience, which was then followed by pandemic-related chaos, the industry might be a little more prepared to deal with possible supply-chain disruptions.

Possible effects on manufacturing

The San Diego Regional Chamber of Commerce is worried about potential tariffs on goods from Mexico. Kenia Zamarripa, a spokesperson for the group, said the CaliBaja region — which includes San Diego and Imperial counties and the Mexican state of Baja California — is interconnected, with a multibillion-dollar supply chain. The region’s logistics facilitate 80% of the trade between California and Mexico, she said.

The nation’s top imports from Mexico in September — worth at least $2 billion for each category — were petroleum and coal products, computer equipment and motor vehicle parts, according to the most recent statistics from the U.S. Census Bureau’s Bureau of Economic Analysis.

Some specific products that are imported into the U.S. from Mexico through California include the Toyota Tacoma. The truck and its components are made in Baja California and elsewhere in Mexico. “Imagine taxing each component before it goes to Mexico and back,” Zamarripa said.

She added that the region also leads in producing medical devices, and that the importance of that became apparent during the beginning of the pandemic when “a bunch of companies shut down, not knowing that a little metal piece they were producing was a vital part of a heart monitor, for example.”

Mexico’s economy minister, Marcelo Ebrard, said this week that he would hit the U.S. with tariffs if Trump imposes tariffs, though President Claudia Sheinbaum has seemed more open to negotiations.

Lance Hastings, chief executive of the California Manufacturers & Technology Association, said he’s well aware of the disruption tariffs can cause. When Trump put tariffs on aluminum and steel imports, aluminum prices rose at least 25%, Hastings said. “I was in the beer industry when it was put in, and we felt it,” he added.

Hastings also said the anxiety around Trump’s proposed tariffs stem in part from the fact that “we’re still trying to get the supply chain back to normal” after the pandemic. Because “California is the gateway to Asia, the state would feel the impact of more tariffs first and more than everybody else,” he said.

Made in the USA

Yet there is a bit of optimism among those who think some tariffs could actually help California manufacturers.

Sanjiv Malhotra, founder and CEO of Sparkz, a maker of lithium batteries, said tariffs could benefit his company and the rest of the domestic battery industry amid the increasing popularity of electric vehicles.

Sparkz, which will get its materials from West Virginia and make batteries at a plant in Sacramento, “is all U.S.-sourced. Nothing is coming in from China,” Malhotra said.

During his campaign, Trump indicated he would try to roll back emission-reduction rules and said he would oppose banning gas-powered vehicles. But Malhotra, who served in the U.S. Energy Department under the first Trump administration, said that as demand for lithium batteries grows, he believes Trump’s incoming administration will understand that they “need to be made here in the U.S. so we are not dependent on China for batteries.”

“The port and logistics complex in Southern California is a very important part of the economy, and directly tied to the countries he threatened.”
— Stephen Levy, economist and director, Center for Continuing Study of the California Economy

Kate Gordon, CEO of California Forward, a nonprofit organization that focuses on the state’s economy, said that while it’s important to get back some of “what we’ve lost over the past couple of decades” — the nation once led in solar panels — it “needs to happen deliberately and with attention to where we’re really competitive.”

“What would be terrible would be tariffs on things where we’re no longer competitive, like parts of the solar supply chain, which have been held by China for a long time,” she said. All that would do is drive up prices, Gordon said.

Americans may say they want things to be made in the USA, but they also don’t want to pay higher prices for them, said Derek Guy, a menswear writer based in San Francisco who has covered the clothing industry for more than a decade. A few years ago, Guy wrote about American Apparel, under new ownership, offering U.S. consumers the option of paying a little bit more for clothing made here vs. similar pieces made overseas.

“Even based on a few dollars, when someone wasn’t looking over (their) shoulder, people chose the foreign version,” Guy said.

“A lot of manufacturing in the U.S. has long shifted toward the higher-end,” Guy said. “The kind of cheaper clothes we’re talking about (what most Americans buy) are made elsewhere.” Tariffs would raise those prices.

The price of almonds

California’s top agricultural exports include almonds, wine, dairy products, pistachios and other nuts.

During Trump’s first term as China imposed retaliatory tariffs on the U.S., California exports of wine, walnuts, oranges and table grapes to China fell, according to the University of California Giannini Foundation of Agricultural Economics.

In addition, almond prices sank, with the foundation’s researchers saying prices fell from $2.50 a pound to $1.40 a pound in 2018. That had a negative impact on an industry that generates $4 billion to $5 billion a year and employs about 110,000 people, according to the website of lobbying group Almond Alliance.

Amanda Russell, a spokesperson for the Almond Alliance, said in an emailed statement: “In previous trade negotiations, President Trump demonstrated a commitment to supporting agriculture, and we are optimistic about continuing this partnership to address the challenges and opportunities facing our growers and stakeholders.”

Besides tariffs, another likely action by Trump that could affect the state’s agriculture industry is mass deportations — a threat that has immigrants and advocates on edge.

“I can’t see any benefit to California if he goes through with mass deportation,” said Levy, the economist in Silicon Valley. “Even the threat of deportation will affect the labor pool.”

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CalMatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics.


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California Senate Leader Calls Union ‘Morally Bankrupt’ for Opposing a Vulnerable Democrat

Ryan Sabalow / Wednesday, Nov. 13, 2024 @ 7:37 a.m. / Sacramento

California’s top Senate Democrat called a prominent labor union “morally bankrupt” after it spent more than $1 million to oppose the state’s most vulnerable Democratic senator in a tight race that could put a Republican in his seat.

The union apparently spent the money against Sen. Josh Newman of Fullerton because leaders were angered by at least one vote that he cast. And while it’s not uncommon for unions to criticize or threaten Democrats who stray from their agenda, Senate Democrats said that spending such a large amount to help elect a Republican was a step too far.

“Instead of spending time, effort and energy helping Democrats win congressional races, they supported a supporter of Donald Trump,” Sen. President Pro Tem Mike McGuire told CalMatters. “They supported a pro-Trump Republican who is anti worker… It’s unconscionable what they did in Orange County, because they helped drive Republican turnout.”

It’s extraordinary for any prominent California Democrat to criticize a labor union so harshly in a state where Democrats count organized labor among their closest and well-funded allies. But with votes still being counted, McGuire could lose a member of his Senate Democratic caucus.

Newman.

On Tuesday, Newman was trailing Steven Choi, a former Republican Assemblymember and Irvine mayor, by about 9,400 votes with about 126,000 ballots left to process in Orange County.

The union, the American Federation of State, County and Municipal Employees Local 3299, was furious at Newman for joining a group of Senate Democrats in killing a bill last year that the union sponsored, according to Newman and his Senate colleagues. The bill sought to enshrine the rights of workers at the University of California in the state constitution.

A spokesperson for the union and its lobbyist, Richie Ross, could not be reached for comment. The union, representing 30,000 workers at 10 UC campuses as well as medical centers, clinics and research laboratories, is planning a two-day strike for next week, the latest in a longstanding labor battle that was reflected in the worker rights issues raised in the bill.

Newman is the only one of three Senate Democrats who helped kill the bill and is running for reelection this year, so he took the full brunt of the union’s wrath.

In the March primary, the union spent $305,311 backing five Democratic candidates against Newman. The union also spent $893,652 on TV ads, campaign fliers and other negative advertising opposing Newman in the weeks before the general election. In total, AFSCME 3299 spent at least $1.2 million opposing Newman in the primary and general elections this year, according to campaign finance reports.

Newman called the union’s campaign spending “a disservice to their members and to the labor movement.”

Newman also infuriated a different AFSCME local union this year for sponsoring a gambling bill its members opposed. That local’s members staged protests outside Newman’s office, but it didn’t report spending any money in the race.

It was a remarkable amount of political blowback toward a typically union-friendly Democrat from affiliates of one the state’s most powerful unions. AFSCME is one of the state’s biggest political spenders. Since 2015, the union and its locals have given $8.35 million to California candidates, most of them Democrats, according to the Digital Democracy database.

But AFSCME’s tactics may backfire if the union intended to intimidate the Democrats who control the Legislature into always doing its bidding.

Newman is well-liked among his Democratic colleagues, and they are outraged that one of their labor allies went after him so aggressively.

McGuire.

“Josh Newman is universally liked no matter if you’re a Democrat or Republican,” McGuire said. “People love Josh Newman.”

Asked what he thinks will happen if AFSCME 3299 goes to Senate Democrats with its hand out this year, outgoing Democratic Sen. Bill Dodd of Napa replied: “I hope they bite it off.”Another departing Democrat, Sen. Steve Glazer of Orinda, called AFSCME’s tactics “political terrorism.”

Part of Democrats’ frustration is that Newman is an especially vulnerable candidate. Democrats have a narrow three-point edge in voter registration in the district. In 2018, Newman was recalled from office with 58.1% of voters choosing to oust him. He regained his seat two years later with a slim 51.3% victory.

And it’s not as if Newman regularly sides against the union in policy disputes. Newman has aligned with AFSCME and its local unions with their positions on bills 96% of the time, according to Digital Democracy.

Other unions stepped up to help Newman in the race, helping him gain a fundraising advantage over Choi of $6 million. Choi raised just $856,000.

AFSCME didn’t give any money directly to Choi’s campaign. Instead, the money it spent to oppose Newman was directed to an independent expenditure committee. Under state and federal election rules, organizations not affiliated with a candidate can spend unlimited amounts of money supporting or opposing candidates through advertisements and other tactics to try to sway voters as long as the actions are not coordinated with the candidate’s campaign.

In highly competitive races, well-timed ads can be the “straw that broke the camel’s back,” said election analyst Paul Mitchell.

“Legitimately, those campaign expenditures can make the difference,” he said.

Choi told CalMatters that AFSCME’s negative ads might have nudged at least a few voters toward him.“I don’t know how effective those negative ads might have been against him,” Choi said. “But… I’m sure that helped probably a little for me.”

Newman told CalMatters that whether he wins or loses, he hoped Democrats would remember AFSCME’s “scorched-earth tactics” when the union comes asking them for favors.

“I would hope that the Democratic caucus in both houses and leadership in both houses would take this fully into account when it comes to dealing with AFSCME 3299,” he said.

While critical of the union, McGuire didn’t say he’d shoot down its legislative demands.

“Legislation is considered on its policy and fiscal merits,” he said. A spokesperson for Democratic Assembly Speaker Robert Rivas declined to comment.

Assemblymember Gregg Hart, a Santa Barbara Democrat, also stopped short of saying whether the union’s tactics would factor into his decisions, but he said he’s certainly been paying attention to the attacks on Newman.

“It’s super hardball,” Hart said. “And people get hurt in hardball.”

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CalMatters data reporter Jeremia Kimelman contributed to this story.

CalMatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics.



OBITUARY: Dennis Lee Sherman III, 1992-2024

LoCO Staff / Wednesday, Nov. 13, 2024 @ 6:56 a.m. / Obits

Dennis Lee Sherman III was born January 5, 1992 in Eureka. He passed away October 27, 2024 in Hoopa. Dennis went on before us.

Dennis was a great person, joyful, kindhearted and you always could expect a big smile when you saw him. He made you happy just to be around! He was a loving father and a great son.

He was a firefighter. He enjoyed his job working hard at the fire station traveling from state to state and received several awards and certificates.

Dennis was survived by his mom, Laura Biondini, and his dad Dennis Sherman and Brandon Biondini, children Dennis Sherman the fourth, Abigail and Analeise (Anna). Den had no siblings although Teresa Kathleen, Alicia, Brittany, Seeley, Tucker, Destiny, May Dawnetta, Toonz, Sabrina, Aubrey and several other cousins. e was the big brother especially to Zoey, Mann and Landon who later came into his life. His good friend Kiaunna Ferris who gave him a smile mom has not seen in a while.

Many family knew him as DenDen, and his nickname stuck to him throughout his life he grew up playing football and loved playing basketball especially just to shoot around with the little ones. Eeling was one of his favorite things to do with his friends. Dennis was full of spirit and goofy. You could always expect him to go out of his way to say hello, give you a hug or tell you about his children. He would surprise you with a visit or just show up at the family event, you would hear “DenDen’s here, what?” and turn around and there he was, smiling so big. He was the light of the family and had a heart of gold. Being the only child he gave his mom everything and made sure she was taken care of. They were best friends. She was his world. Family was everything to him.

Dennis loved beyond, and that even showed with his brothers at the Hoopa Fire Department. The family would like to thank those brothers for being by his side and helping him build a career and having the family bond he had with each and everyone of you. Den was loved beyond by everyone who crossed his path. Our loving son, brother, nephew, cousin will be forever remembered and missed especially the smile he shared.

He is preceded in death by his Grandma Kathleen Sherman (Peters), Grandma Charlene Fiester-Markussen (Nana) and Grandpa Dennis Sherman, Uncle’s, Aunties and lots of cousins. Dennis has surviving uncles Robert Wilson, Carl Wilson, Johnson, Joseph Sherman , Anthony Peters, Mark Denman, Aunties Susie Wilson, Karen Spenser, Brenda Sherman, Bonnie Sherman, Mary Spott — if I forgot you, sorry — along with Grandparents Mary and Jack who supported Den and loved him as their own.

Honorary Pallbearers Micheal George, Dwayne Quella, Eric Amos, Ralph Brown, Jason Jones, Naomi Brown, Rob Roy Latham, Daniel Pratt, Jason Marshall Sr, Tyler Breu, John Leach Jr, Sregon Gabriel, Clinton Hoaglen, Glenn Kiesner, Lester White Jr, Chris Heath, Timothy Blake, Tony Williams, Neil Moon, Wilfred Ferris, Skyler Moiser, Dylan Martinez, Quentin Mosier, Kevin Norton, Andrew Mckinnon. His buddies Adam, JuJu, Howie, Micheal, Kash, Nieko, Houston, Andrew, Robert Hodge.

Dennis’ last ride will begin at 9 a.m. from Ayers Family Cremation — 2620 Jacobs Ave, Eureka — with family and friends to Hoopa, where he will be greeted by his brothers in Willow Creek. A Firefighter Procession will begin and his last call at the Hoopa Fire Department and Office of Emergency Services 11121 HWY 96, Hoopa. Dennis will be buried with family at Young cemetery, Weitchpec.

A Celebration of Life and services will be on Friday, November 15, 2024 at Hoopa Fire Department Hall — Hwy 96, Hoopa. We ask each and everyone to bring a dish and share memories, stories, songs and photos of Den and hold a beautiful celebration as these are the final memories we will have of him. Make it beautiful for his children, parents and family. Chopsie Moon-Horne will be officiating his services. Thank you Eureka Florist and Ayers Family Cremation.

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The obituary above was submitted on behalf of Dennis Sherman III’s loved onesThe Lost Coast Outpost runs obituaries of Humboldt County residents at no charge. See guidelines here. Email news@lostcoastoutpost.com.



OBITUARY: Travis Lee Standley, 1972-2024

LoCO Staff / Wednesday, Nov. 13, 2024 @ 6:56 a.m. / Obits

It is with profound sadness that we announce the unexpected passing of our beloved Travis Lee Standley, a cherished son, brother and friend. Travis was born on August 7, 1972, in Bemidji, Minnesota, to loving parents Russell Standley and Elena Lerch (Standley). He departed this life on November 1, 2024, at the age of 52, due to heart complications.

Travis spent his formative years hunting deer and pheasants, enjoying adventures with friends and family. He developed a strong bond with his father as he learned the intricacies of driving trucks. His father worked as a truck driver for Tony’s Pizza during Travis’s childhood, which earned him the affectionate nickname “Little Tony.” This nickname reflected his close connection to the trucking world.

In 1983, the Standley family made a significant move from North Dakota to Eureka. It was in the picturesque surroundings of Eureka that Travis grew up alongside his brother Troy and sister Tanya. The three siblings were inseparable and were often lovingly referred to as the “Three T’s,” a testament to their close-knit relationship.

After graduating from Eureka High School in 1990, Travis immersed himself in the local community, taking on various jobs at Grocery Outlet, The Mill Yard, Palco, and eventually Bettendorf Trucking. Ultimately, he found his true calling as a truck driver for Del Reka Distributing, a job that brought him immense joy and fulfillment.

In 2001, destiny led Travis to meet the love of his life, Elizabeth Steele, at a dinner party hosted by his sister. Their connection blossomed into a beautiful relationship, culminating in their marriage in 2004. Together, they built a life in Eureka filled with shared experiences and mutual support, even after their separation in 2010. Despite parting ways, they remained close friends, underscoring the deep bond they shared.

Travis had a true passion for golfing and cherished the time spent on the greens with his brother-in-law Stacey, brother Troy, nephew AJ, and their weekend golf crew at Eureka Golf Course. Golf outings often turned into lively gatherings filled with laughter and camaraderie. He also enjoyed weekends watching his favorite team, the New England Patriots, going to the movies, and shopping with his sister, Tanya.

Family dinners on Sundays were a treasured tradition for Travis. When his dad and stepmom moved to North Dakota, a dear family friend, Tammy Slyvest, graciously stepped in to maintain this tradition. She not only kept the Sunday family dinners alive but also took the time to teach Travis cooking skills, creating lasting memories in the kitchen.

Travis’s infectious smile, sharp humor, and zest for life left a lasting impression on everyone he met. He had a unique talent for making friends easily, fostering deep connections that often turned into extended family. His warm spirit and loving nature will be remembered by all who had the pleasure of knowing him.

Travis is survived by his father, Russell Standley (wife Liz Standley), mother Elena Lerch, brother Troy Standley, sister Tanya Lyons (husband Stacey and step-son Jerome Lyons), nephews Hector Godoy and Anthony Jackson, step-sister Jenny, step-brother Russell, and a very close family friend, Tammy Slyvest. He was preceded in death by his grandparents, Irving and Hannah Standley, and Melvin and Vivian Lerch.

The family expresses heartfelt gratitude to John and Jackie McBeth, Jennifer Perrone, the Del Reka family, Trevor at the Humboldt County Coroner’s office, and Ayers Cremation for their unwavering support during this challenging time. In lieu of flowers, the family kindly requests donations to the Eureka Golf Club in memory of Travis Standley. A celebration of life will take place in the spring of 2025, allowing time for family out of the area to travel to Humboldt.

“Remember 2 Corinthians 5:8: to be absent from the body is to be present with the Lord.”

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The obituary above was submitted on behalf of Travis Standley’s loved onesThe Lost Coast Outpost runs obituaries of Humboldt County residents at no charge. See guidelines here. Email news@lostcoastoutpost.com.



OBITUARY: Fernando Soares Lourenco, 1930-2024

LoCO Staff / Wednesday, Nov. 13, 2024 @ 6:56 a.m. / Obits

Fernando Soares Lourenco passed away on November 6, 2024, with his son Jorge by his side. Fernando was the fourth of twelve children born to Amelia and Jose Homem on August 19, 1930, in Terceira, Azores. He always had fond memories of his childhood and recalled having everything despite having very little. As a young man he worked very hard in the family field growing the crops that would feed his large brood. This hard work ethic was cultivated at a very young age and continued throughout his life.

He was drafted as a teenager and served in the Portuguese military. When his service was completed, he was appointed by the American military and began his employment as a driver for American officers. This position was very gratifying, and he took this placement very seriously. He would speak highly of this time and the prestige it carried.

In 1956 he emigrated from the Azores to Rio de Janeiro, Brasil to work at his brother Jose’s butcher shop. Fernando loved being a butcher and he loved Brasil and the opportunities that were obtainable with hard work. During this time, he met the love of his life, Jorlanda, and within no time Fernando was able to purchase his own butcher’s shop. On December 17, 1961, they were married and lived in a small one-bedroom apartment behind the butcher shop. In 1963 they welcomed Jorge. Jorge was the apple of Fernando and Jorlanda’s eye. In 1968, sponsored by his sister Gabriela and brother-in-law Robert Murphy, the family immigrated to the United States, settling in Arcata.

In 1969 Fernando worked at Louisiana-Pacific pulling green chain. Fernando was ambitious and had big dreams to run his own business again. In 1974 they purchased Arcata Creamline Dairy in the Arcata bottoms (now known as Cypress Grove). This was a family-run-business with all hands on deck. Fernando was in charge of milking cows and bottling milk and Jorlanda worked tirelessly bottling milk, cleaning stalls and working the store. Jorge was tasked with making sure the cows were in the stalls to feed and doing whatever else he was directed to do. Fernando made many friends while delivering milk to the local markets (Co-op, Murphy’s, Westwood, Larry’s and Whole Earth Market (on the Plaza).

In 1984 they purchased the Christiansen dairy in McKinleyville, where they continued to produce milk, which they sold to the Humboldt Creamery.

Fernando loved getting together with his family. Beginning in the 1970s he was the catalyst for lively picnics at Pump stations #1 & #4, Korbel, Weott, Moonstone Beach and Benbow Lake. Fernando had a great sense of humor offering adages with wisdom.

Later in life, Fernando and Jorlanda were blessed to care for their nephew Jeffery Homem while his parents worked. Jeffery was like a second son to them, and they delighted in picking him up from school, making him his favorite meals and enjoying weekend sleepovers. In 1997 & 1998 they were blessed with two beautiful grandchildren. Fernando delighted in watching them grow up and was so proud of them as they graduated from college and started their own careers. You could always count on Fernando to express so much pride regarding their accomplishments and achievements.

Fernando will always be remembered as a loving, loyal and devoted husband. He and Jorlanda were dedicated to each other for 63 years. The day he was admitted to the hospital his final act of love was making Jorlanda soup for lunch.

He was preceded in death by his parents, Jose and Amelia Homem; his sisters, Maria Jose De Matos, Maria dos Santos Rafael, Natalia Oliveria, Fatima Borges; his brothers, Manuel Homem, David Homem and Antonio Lourenco; his brother-in-law Robert Murphy and his special nephew Jeffery Homem. He is survived by his wife, Jorlanda; his son Jorge; his grandchildren John “Jake” Lourenco and Cameron Lourenco; his siblings Gabriela Murphy, Jose Homem (Gloria), Durvalina Machado, Avelino Homem (Ana) and brother-in-law John DeMatos; and many nieces, nephews, grand- nieces & grand-nephews and great-nieces & great-nephews.

The family would like to give a heartfelt thank you to all the staff at Redwood Coast PACE for ensuring that Jorlanda and Fernando remained in their home. A special thanks to Merna, who Jorlanda calls a “second mother.”

A recitation of the Rosary will be held at 10:30 a.m. on November 16, 2024, at St. Mary’s Catholic Church in Arcata, with a Mass of Christian burial following. Pallbearers will be; Jorge, Jake and Cameron Lourenco, Amarildo Homem, Larry Murphy, Rich Homem, Frank Oliveira, Anthony Lourenco and George Cavinta. Funeral arrangements by Paul’s Chapel.

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The obituary above was submitted on behalf of Fernando Lourenco’s loved onesThe Lost Coast Outpost runs obituaries of Humboldt County residents at no charge. See guidelines here. Email news@lostcoastoutpost.com.



OBITUARY: Kenneth ‘Joe’ Shepp, 1950-2024

LoCO Staff / Wednesday, Nov. 13, 2024 @ 6:56 a.m. / Obits

Kenneth “Joe” Shepp
May 16, 1950 – November 4, 2024

Kenneth “Joe” Shepp, 74, passed away on November 4, 2024. Born on May 16, 1950, in Bay City, Michigan, Joe was a dedicated husband, a steadfast father, and a cherished member of the Southern Humboldt community. He will be remembered for his bold spirit, self-made success and unique sense of humor.

Joe spent much of his life as a heavy equipment operator with Shepp’s Equipment, as a master cannabis farmer, and as a skilled carpenter and mechanic. He was an early homesteader in Ettersberg, a local bush pilot, a motorcycle racer, an ocean sailor, and a cold water surfer, embodying a love for the outdoors and fearless pursuits.

He shared 47 devoted years with his late wife, Mary Shepp, who passed away on June 16, 2013, and later found companionship with Jessica Duran, his partner of 10 years. Joe is survived by his three sons, their families, and grandchildren: Joey, Stacie, and Devin Shepp; Jason, his former wife Amber, and their children Makoa, Alana, Ikaika, and Mahina Shepp; and Jerrell, his former wife Rakhia, and their children Jacoby, Omarie and Khyrie Shepp. He is also survived by his siblings Carol Shepp Johnson, Edward Shepp, David Shepp, Patrick Shepp, and Paula Shepp Bassett. He was preceded in death by his siblings Richard Shepp and John Shepp.

Joe’s contributions extended beyond his family and work. He was a skilled pilot who helped young pilots obtain their wings. He served as the president of Southern Humboldt Little League, mentored young motorcycle racers, and was a familiar voice on KMUD Radio, demonstrating his commitment to the local community.

A memorial service celebrating Joe’s life will be held in June 2025 in Shelter Cove — further details coming in early 2025. For further information and to reach out to the family, please visit joe.shepp.com or leave a voice message or text at (707) 413-7526.

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The obituary above was submitted on behalf of Joe Shepp’s loved onesThe Lost Coast Outpost runs obituaries of Humboldt County residents at no charge. See guidelines here. Email news@lostcoastoutpost.com.



TODAY in SUPES: Board Suspends 2025 Weed Taxation, Directs Staff to Explore ‘Repeal and Replace’ Options for Measure S

Ryan Burns / Tuesday, Nov. 12, 2024 @ 4:34 p.m. / Cannabis , Local Government

A grower addresses the Humboldt County Board of Supervisors. | Screenshot.

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Once again today, the Humboldt County Board of Supervisors opted to cut the struggling cannabis industry some slack, voting 3-1 to eliminate taxation on next year’s cultivation and directing staff to explore options for an altogether new system of weed taxation that could replace Measure S, which voters approved in 2016.

Fifth District Supervisor Michelle Bushnell was forced to recuse herself due to her participation in the industry, but the matter still required three “yes” votes for any motion to pass. With the four participating supervisors workshopping measures on the fly, the deliberations descended into confusion before the board landed on a suggestion that the majority supported, with First District Supervisor/board chair Rex Bohn voting “no.”

The approved motion will also give growers a discount on their 2024 cultivation taxes, which come due next May. Following a suggestion from Third District Supervisor Mike Wilson, the board agreed to eliminate a built-in inflation increase of 23 percent, based on the Consumer Price Index (CPI).

That means the tax on this year’s cannabis gardens will drop back to the previously slashed rates of 10 cents per square foot of outdoor cultivation, 20 cents per square foot of mixed-light cultivation and 30 cents per square foot of indoor. (The original rates of Measure S were ten times those amounts.)

This isn’t the first time that the board agreed to lessen the burden on local growers as the statewide industry struggles from oversupply. In 2022, for example, the board responded to urgent pleas from local growers by agreeing to suspend Measure S taxes for two years. This past October the board reinstated the tax at dramatically reduced rates, starting with the current calendar year. At the time, the board also directed growers with outstanding tax debts to enter into payment plans with the county by March of 2025.

Today, Deputy County Administrative Officer Sean Quincey said there are roughly 1,000 cultivation permits still active countywide, and as of last month 771 of those are delinquent on their county taxes, owing a combined $11.97 million. Only 418 of those growers have signed up for a payment plan.

Quincey laid out a variety of options for the board, including a proposal to temporarily suspend taxes altogether for the smallest farms while taxing larger ones at 10 percent of Measure S rates. He noted that it’s very difficult in the current economic environment to predict revenue from weed taxation, but he ventured a “guesstimate” of less than a million if the board continued with the current, reduced rate and maybe half that amount if it adopted the proposal for a graduated billing structure.

Fifth District Supervisor Steve Madrone offered the most lenient terms to growers, even suggesting a program that would allow those in debt to surrender their permits in exchange for having all of their fees and taxes forgiven. He also suggested extending the payment plan deadline beyond March of 2025.

Fourth District Supervisor Natalie Arroyo said a lot of community members want more information about how Measure S revenues are being spent, and she voiced interest in exploring the idea of repealing and replacing the measure, possibly with one based on gross receipts rather than cultivation area.

Third District Supervisor Mike Wilson pushed back against Madrone’s proposal for a two-year suspension, saying, “I still believe that the general public is still pretty supportive of of some kind of cannabis tax in Humboldt County.”

The Humboldt County Growers Alliance, a cannabis industry group, put up its social media bat signal yesterday, calling on growers to turn up at today’s meeting and call for a two-year suspension of Measure S. Many did just that. HCGA Policy Director Ross Gordon, for example, cited results of an internal survey of local growers. 

“We distributed a survey in September looking at current market conditions,” he said. “About 107 cultivators responded. Of those cultivators, 85% said that since the board’s decision to totally suspend the Measure S tax in November 2022 things have gotten worse. Cultivators reported that average price per pound has dropped from $400 a pound to $350 a pound over the last year. … This is why we’ve asked for an additional two year suspension of the Measure S tax.”

Other growers called for “normalization” of the industry, by which they meant treating cannabis like other agricultural products in the state, which aren’t subject to cultivation taxes.

Grower Dylan Mattole said economic studies show that cannabis still generates hundreds of millions of dollars for the local economy, and he argued that Measure S taxes shouldn’t exist.

“We need to stay at zero so that we can keep in business and keep inputting well over half of billion dollars … into this economy,” he said.

HCGA Executive Director Natalynne DeLapp described an industry in economic free fall. 

“We are going to see more and more farmers going out of business, because you can only operate in the red for so many years before you file bankruptcy,” she said. “[A]nd everyone knows that taxing a struggling industry is the fastest way to crush it.”

Humboldt County Planning Commissioner Thomas Mulder called in during public comment, saying he’s among the cannabis cultivators who owes back taxes, though he’s trying to make payments. 

When the matter came back to the board, Madrone laid a variety of options on the table and eventually made a motion to suspend Measure S taxes for two years — the 2025 and 2026 calendar years, for which bills would be due in 2026 and 2027. 

Wilson remained resistant to slashing those taxes altogether. He suggested the idea of a flat tax to be assessed on all but the smallest-scale growers.

In a rare instance of agreement with Madrone, Bohn suggested laying off taxation for now, saying everyone seems to want a piece of the pie. “And if we want to have any idea of maybe having pie later, we’re going to have to support the cultivators,” he said. He joined Madrone in advocating for a two-year suspension.

The board tossed around some more ideas for a while. Wilson argued that growers’ economic woes have more to do with external market forces than local taxation, and he reminded his colleagues that voters approved taxation of the industry.

“We heard from one side today, but there’s definitely another perspective,” he said.

Both he and Arroyo expressed reluctance to suspend Measure S for two years, and so Madrone pulled his motion back before a vote was taken. He made a new motion to suspend the tax for one year and direct staff to return with options for repealing and replacing it. Wilson seconded the motion, but then Bohn said he’d rather see growers get a break on this year’s bills. 

Madrone then seemed to (perhaps subconsciously) incorporate Bohn’s suggestion into his already-made motion, later saying he would be unwilling to “amend” his motion to include any taxation of the current year. Wilson objected, saying that wasn’t the motion he’d seconded, and the conversation went sideways for a spell.

Arroyo was put in the awkward position of having to take a side, and she wound up agreeing with Wilson, saying she didn’t come into the day’s conversation thinking it would include re-litigating previously settled taxation decisions.

Eventually, Madrone withdrew his motion once again and made a new one. As noted above, it called for the elimination of Measure S taxes for the 2025 calendar year, plus a small reduction in taxes for the current year and a directive to county staff to bring back options to repeal and replace Measure S. Wilson seconded again. Bohn was dissatisfied with the lack of immediate relief for growers and thus voted “no.” The motion passed regardless.

Electric car battery pilot project

Earlier in today’s meeting, the board debated the financial implications of participating in a pilot project involving Nissan LEAF electric vehicles, some state-of-the-art bi-directional electric vehicle charging stations and the Redwood Coast Airport Microgrid.

Former Humboldt County Aviation Director Cody Roggatz, whose abrupt resignation remains a mystery, initiated this pilot project, which will see the county partner with PG&E, Nissan, Fermata Energy and the Schatz Energy Research Center to install bi-directional electric vehicle chargers at the Arcata-Eureka Airport. The two-year project is financed through a sub-grant award from Cal Poly Humboldt. (The primary funder is the California Public Utilities Commission).

As Schatz engineer Dave Carter explained to the board, these bi-directional chargers are unique in that they not only charge Nissan LEAF vehicles but can also export energy from the vehicle batteries back to the county’s facilities, which will help manage electricity costs and improve grid stability. 

“That is a very unique kind of leading-edge technology, [an] up-and-coming system that we’ll see a lot more of in the coming years,” Carter said. He went on to explain, “We will be able to use the cars to balance the frequency inside the microgrid when the microgrid is islanded,” that is, when it’s not plugged into the statewide electrical grid.

The matter was set to be approved without specific deliberation as part of the consent calendar, but Bushnell pulled it over cost concerns, noting that it will require money from the county’s General Fund contingencies during a budget crisis. (The General Fund is facing a $17 million deficit, per the latest projections.)

“I’m not feeling very great about it,” she said, noting that this project isn’t budgeted.

The pilot project requires the Department of Aviation to purchase one Nissan LEAF electric vehicle at $33,769 (a discounted rate) and to accept a loan of a second Nissan LEAF. The rest of the project, including installation of the bi-directional EV charging stations and software and cloud services from Fermata Energy, would be financed through the Cal Poly Humboldt sub-grant in the amount of $104,147.

Bohn was skeptical about the ability of two small car batteries to balance the microgrid, but Carter said they’re capable of generating 40 kilowatts, which is enough to extend the microgrid’s capabilities in an emergency.

“It’s a significant injection of energy in a worst-case scenario,” he said.

Bohn also questioned the utility of such tiny vehicles.

“You can’t get a shovel in a LEAF,” he said. “So we’re just going to have people drive up to the airport, look at it and drive back. There’s not going to be any repairs, weed eaters, any of that work done at the airports.”

Wilson defended the project’s value in keeping Humboldt County at the forefront of renewable energy development, saying, “I think we probably have the highest microgrid capacity per capita of any county in the United States.” And he said that bi-directional chargers will eventually allow the larger community to have more energy resilience, with electric cars serving as backup battery systems.

Bushnell remained wary, asking what will happen if the county doesn’t want to keep these LEAF-specific bi-directional chargers at the end of the program period. Carter explained that much of the circuitry to be installed will be compatible with other chargers.

When it came time to vote, Bushnell said, “I’m gonna vote yes. However, I have a lot of feelings about it.” She’s worried that it will cost the county money in the long run. Nevertheless, the board voted unanimously to embark on the pilot project.

So long, Jim Wood

Wood

Family dentist and former Healdsburg Mayor Jim Wood, who has been our District 2 representative in the California State Assembly for the past decade, has just two weeks left on the job before he’ll be succeeded by incoming Assemblymember-elect Chris Rogers.

Wood appeared in board chambers today to deliver some retrospective observations, offer some advice for dealing with the state legislature and bid fond farewells to county personnel. 

Wood recounted his work on legislation to extend seismic compliance deadlines for small rural hospitals, expand timber harvest plans to improve wildfire resilience, and address and restore sites that have been damaged by illicit cannabis cultivation.

He also emphasized the importance of communicating with state legislators to address critical local issues and said Rogers will continue work on important projects such as expanding the region’s “middle mile” broadband network here in “the most underserved district in the state.”

Wood warned that this year’s state budget will not be good, so we shouldn’t expect much in the way of extra resources from Sacramento. 

Each board member expressed gratitude for Wood’s work over the past decade, and at the end of the meeting they posed for a group photo. (Minus Wilson, who had to leave the meeting early.)

Posing for the photo (from left to right): Jim Wood, Michelle Bushnell, Rex Bohn, Steve Madrone, Natalie Arroyo and County Administrative Officer Elishia Hayes. | Screenshot.