California Stem-Cell Program Wins State Loan
By DAVID P. HAMILTON
July 21, 2006; Page A4
California's stem-cell program won a $150 million loan from the state that will allow it to begin funding research restricted by the federal government, handing a lifeline to the initiative while the courts resolve lawsuits that question its legitimacy.
The loan authorized by Gov. Arnold Schwarzenegger provides a lift to the agency running the program, formally known as the California Institute for Regenerative Medicine, whose operations have been largely paralyzed by lawsuits since its approval by voters in November 2004. Although the institute aims to spend $3 billion on stem-cell research in the state in the next decade, legal challenges backed by fiscal conservatives and opponents of the scientific work have prevented California from issuing bonds to fund its grants and operations.
The governor's move came a day after President Bush vetoed legislation that would have significantly loosened federal restrictions on funding embryonic stem-cell research. Stem cells, which have the capability to transform themselves into any sort of body tissue, are derived from four- to five-day-old embryos, which are destroyed in the process.
"I have to give credit to the governor for his leadership and decisive action at a critical point in the history of medical research," said Robert Klein II, chairman of the stem-cell agency's oversight board. Mr. Klein said he began discussions with Mr. Schwarzenegger's staff about the loan Wednesday morning after it became clear Mr. Bush would veto the federal measure. By 10:30 a.m. yesterday, he said, he saw a news release announcing the governor's decision.
"With one stroke, the president has energized the CIRM program," said Zach Hall, the agency's president. Dr. Hall said the loan will make it possible to move ahead with a program of seed-money grants to scientists, which are expected to range from $100,000 to $500,000. That money, however, likely won't begin to flow until next year, Dr. Hall said.
The agency this year awarded $12.1 million in training grants for junior scientists, its only direct research support to date.
The new loan from the state, which the institute will repay with proceeds from bond sales once they take place, brings the stem-cell agency close to its goal of $200 million in funding this year. In April, several private donors supported the effort by purchasing $14 million in "bond-anticipation notes," which will be repaid with interest out of bond sales.
Mr. Klein said the agency is in the process of closing another $30 million round of bond-anticipation notes. In the next few years, the agency intends to ramp up its budget to about $300 million a year.
Write to David P. Hamilton at david.hamilton@wsj.com |
