Fiscal Fact Sheet
California has the unique opportunity to become a global leader in the development
of stem cell therapies, creating high-wage jobs and fostering the establishment
of new biotech companies. The California Stem Cell Research and Cures Initiative,
proposed for the November 2004 statewide ballot, offers California the chance
to develop life-saving treatments and cures for some of the world’s most
debilitating diseases and injuries, and holds the potential to drastically
reduce healthcare costs and to protect our state budget and taxpayers. It is
a prudent investment for our health and for our economy..
Funds life-saving research & protects state budget...
- The initiative will authorize $3 billion in state tax-exempt bonds.
- Funds will be allocated incrementally over 10 years (~$295 million per year) for Californiabased stem cell research at leading universities and research institutions.
- Repayment of bond principal and interest will be deferred for five years, protecting our state budget during a period of economic recovery.
- Individual taxpayers are protected because no new taxes are required to fund implementation.
Generates significant new revenue & jobs for the state...
- California will benefit from patents and royalties that result from the research for decades to come.
- Construction of research facilities and new research jobs will generate millions of dollars in new tax revenues for California.
- Experts from Stanford University project sales and income taxes generated from bond proceeds in the first five years will reach approximately $70 million.
Offers potential to reduce healthcare costs by billions...
- Californians spend more than $110 billion annually on healthcare expenses...more
than any other state in the nation.
- If stem cell research results in a single cure that reduces healthcare costs by just one percent, it would pay for itself several times over during the following decade.
Requires strict fiscal and public accountability...
- Independent audits, public meetings/hearings and annual reports will ensure initiative funds are used effectively, properly and directed to the most promising and highest quality proposals.
Past scientific breakthroughs illustrate potential benefits...
- A non-surgical coronary bypass procedure that was developed for $37 million now saves up to $800 million annually.
- The hepatitis B vaccine cost $32 million and saves nearly $150 million annually.
- The development of a polio vaccine is estimated to have lowered U.S. healthcare costs by about $30 billion a year.