California voters have approved a eyebrow-raising ballot measure to support medical research that will send more than $4 billion in taxpayer money to a nonprofit founded by a pair of billionaires.
Proposition 38 — dubbed “the worst California proposition” by a columnist for the San Francisco Chronicle — officially passed with more than 54% support and 83% of the vote counted, according to the Associated Press.
“The measure will fund a statewide network of researchers, universities and nonprofit institutions working to advance immunology discoveries and turn promising science into life-saving treatments,” the Yes on 38 campaign said in a statement Monday.
“Its passage comes as federal research funding cuts have disrupted clinical trials and delayed medical discoveries nationwide.”
The low-profile ballot measure, which will authorize the state to sell $8.4 billion in bonds to fund medical research at state institutes and universities, has turned some heads.
Half of the money will be directed to a single nonprofit immunology research institute affiliated with the University of California, with the remaining funds distributed through competitive grants to public and nonprofit research institutions.
That UC institute getting half the cash is the yet-open California Institute of Immunology and Immunotherapy at University of California, Los Angeles, co-founded by philanthropist and medical inventor Gary Michelson businessman Meyer Luskin.
The billionaires launched the institute and Michelson was the primary backer of Prop 38, contributing more than $65 million to the campaign, the Sacramento Bee reported.
That sparked criticism from opponents, who accused Michelson of funneling taxpayer money to his own organization, which is reportedly is still understaffed.
“Something stinks about two billionaires getting taxpayers to pay for their pet project, especially when the measure doesn’t disclose that,” Consumer Watchdog wrote in its endorsement picks of California’s propositions.
The California Post reached out to Michelson through the institute for comment.
Opponents of Prop 38 also argued that it’s unfair for money to be directed to just one area of medical research when so many have been impacted by federal cuts. They also claim that the measure could saddle the state with debt.
According to legislative analysis, the state will have to pay $500 million to $600 million annually for 20 years to repay the Prop 38 bond.
Critics pointed out as well that there will be a statutory exemption for the institute from public sector transparency laws.
“California deserves a funding process designed to maximize the likelihood of finding cures, with strong accountability and research proposals judged on their scientific merits,” the No on Proposition 38 campaign said in a Tuesday statement.
“We believe Californians would have rejected Proposition 38 on its merits had they had sufficient time and information to understand its deep flaws.”
Any medications developed from research supported by the bond funding will have to be sold at a 20% discount to Californians, and 10% of any revenue will go back to the state.
