California voters approved Proposition 38, which authorizes $8.4 billion in bonds for research on the immune system and treatments that use it, with half set aside for one institute affiliated with the University of California and the rest for research grants, after the Associated Press called the race on Nov. 9.
The measure passed with about 54% of the vote, compared with 46% opposed, following the Nov. 3 election. The bonds will support research into treatments that use the immune system to fight disease. At least $4.2 billion will go to research involving cancer, heart disease and Alzheimer’s disease.
The measure does not name the institute that will receive half the funds. CalMatters reported that the California Institute for Immunology and Immunotherapy was the only institute in California that then met the measure’s eligibility criteria. The institute is affiliated with UCLA.
Billionaire Gary K. Michelson co-founded it and was a major backer of the proposition. Supporters said the bond would keep medical research going as federal funding faces cuts. Critics questioned the measure’s transparency and its decision to concentrate funds in one institute.
State analysts estimate that repaying the bonds will cost $500 million to $600 million per year for about 20 years. They estimate that total costs, including interest, will be around $12 billion. The measure provides for the state to receive 10% of licensing royalties until the bonds are repaid.
It also requires certain treatments that result from the research to be sold to Californians at 20% below the national average price.