California Stem Cell Report – blogspot.com

All that talk about the agency running out of money for new awards in 2017? Bushwa, he basically said. Its simply not true, he told the directors of the agency at their meeting in Millbrae.

Mills' comments appeared to be directed at media stories, including those on this Web site, that mention the 2017 timetable. However, the date was not concocted by the writers of those stories. It came directly from the agency itself, which has never challenged it until Mills did last week. The timetable was even referenced as recently as December 2013 by the agencys directors.

A case in point came last week when Mills recommended and the board approved slicing $5 million out of a $15 million component of the agencys Alpha clinic RFAs. It was the first time that the board has so heavily cut a previously approved "concept" figure.

Pat Olson, executive director of scientific activities, said,

Enter Mills five months later as president. By last week, he was telling board members that, yes, they have enough money to give out awards until 2020 at a rate of $190 million a year. He said that about $1 billion is available.

Of course, if the agency spends more than $190 million a year, the money will run out faster. And the agency is engaged in clinical trials and commercialization efforts, which are far more expensive than basic research.

But Mills 2020 timetable has some significant advantages even if it slows the pace of awards. It gives the agency substantially more time to arrange some sort of financing for the future. Currently its only real source of funding is state bonds. Its ability to authorize those bonds ends in 2017, according to the agency. Currently Thomas is examining the possibility of some sort of private-public financing arrangement. Asking voters to approve another bond measure has not been ruled out, but it could be problematic politically. The additional time would improve the possibility that clinical trial results would emerge that would resonate with the public as well as with private funding sources.

While Mills paints a rosier financial picture than the agency previously offered, he also has demonstrated a clear fondness for focused austerity. It fits with the mood of the board. Juelsgaard, who is chairman of the agencys Finance Subcommittee, is also attempting to bring a sharper financial perspective to the agency at a time when directors are clearly feeling a pinch.

Instead last December, after directors were told that only $629 million out of $3 billion was left uncommitted, CIRM DirectorJeff Sheehy, in a comment echoed in tone by other board members, said,

One of Mills first public actions involved the agencys $17 million annual operational budget, which is limited by state law. On top of those limitations, in May he whittled the spending plan down to the point where it could be described as less than the previous fiscal year, given inflation.

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California Stem Cell Report - blogspot.com