Contest 7 of 14
Proposition 38
Authorizes Bonds for Immunology Medical Research. Initiative Statute.
Fiscal Impact
Short Term
State pays about $500–600 million a year to repay the research bond.
Long Term
Repayment runs about 20 years. (If the research later earns revenue, some or all of the cost could be recovered — the LAO gives no figure, so it is not counted here.)
Social Impact
- The $8.4 billion bond funds immunology and immunotherapy research, split equally between one UC-affiliated nonprofit institute and research grants for public or nonprofit universities and institutions.
- At least half the funds are dedicated to cancer, heart disease, and Alzheimer's disease, and resulting treatments sold in California must be priced 20% below the national average.
- Supporters say the funding will accelerate development of treatments and cures for cancer, heart disease, Alzheimer's, and other diseases.
- Opponents say research priorities should be set through the budget process and scientific review, not locked into a bond for one field.
A YES vote means:
The state borrows $8.4 billion for immunology and immunotherapy research, with half the money going to a single UC-affiliated research institute and half to research grants, repaid at $500 to $600 million a year for about 20 years.
A NO vote means:
The state does not borrow this money for this research.
Cost (Legislative Analyst): Increased state cost of $500 million to $600 million annually for about 20 years to repay the research bond, with some or all of the cost offset if the funded research generates revenue.
Source: CA Secretary of State, Official Voter Information Guide