Editorial: Stem cell funding is venture capital

Last year's predictions of the benefits California would derive from approving Proposition 71 and funding stem cell research were overly optimistic, a recent study proclaimed.

The report, funded by universities and a biomedical trade association, concluded that while the state would benefit from new jobs, tax revenues and improvements to public health, requiring companies to pay for their use of research funding would stifle the participation of businesses.

In a sense, those using the report to oppose measures now under consideration in the state Legislature to codify how California will benefit from stem cell research are saying they want to consider billions of dollars in taxpayers' money not as a loan for investment purposes _ venture capital _ but instead as an outright gift.


Including interest, state taxpayers will likely end up paying $6 billion or more to repay the $3 billion in bonds.

The stem cell institute is scheduled to disburse its first grants soon, so let's be clear: Prop. 71's $3 billion in public money was not meant to be a gift. It was meant to be an...