California voters approved an $8.4 billion bond measure to fund medical research, but the vote has triggered scrutiny over provisions directing nearly half the money to a barely-staffed nonprofit with deep ties to the billionaire who bankrolled the campaign.
Proposition 38, passing with roughly 55% support, authorizes borrowing for immunology research targeting cancer, Alzheimer’s, and heart disease. However, $4.2 billion is reserved for a single qualifying institute—critics say the eligibility rules point squarely to the California Institute for Immunology and Immunotherapy (CIII), founded by medical device tycoon Gary Michelson.
Three Employees, $4.2 Billion Prize
As of September, CIII employed just three people: a COO, a lawyer, and a scientific adviser. Yet its five-year plan submitted to UCLA projected hiring 51 staffers by mid-2025. The institute’s proposed Westside Pavilion headquarters won’t open until late 2028 at the earliest, and it still lacks $100 million in construction funding, according to UCLA Health CEO John Mazziotta.
Michelson not only founded CIII but also drafted Proposition 38 and contributed $63.2 million of the $71.2 million raised by supporters. Opponents scraped together just $12,000.
‘Remarkably Hard’ to Recoup Costs
The state’s Legislative Analyst’s Office estimates repayment with interest will cost taxpayers $12 billion over two decades, requiring $500–$600 million annually. While 10% of research revenue must go toward debt repayment, UC Davis biologist Jonathan Eisen dismissed projections it could break even: “I don’t see any justification for the speculation.”
The measure exempts the institute from public records laws, substituting annual reports and audits. UCLA officials sit on CIII’s board and stand to receive 7.5% of net revenue from successful drug developments.
Yes on 38 spokesperson Robin Swanson noted funding won’t flow until the institute meets readiness criteria determined by health officials. But with construction delayed and staffing minimal, the timeline for those taxpayer dollars remains unclear.
Source: www.dailywire.com — https://www.dailywire.com/news/california-voters-greenlight-8-billion-in-taxpayer-funds-for-research-institute-with-3-employees