Talking about CIRM

As a Patient Advocate, you’re likely to get many questions about CIRM and what the agency is hoping to accomplish. Below are answers to some of the most commonly asked questions:

What is CIRM?
What does the stem cell agency do?
Why are stem cells important?
What progress has CIRM made?
How has CIRM invested the money?
Should Californians consider this a good investment?
Should the state be involved in using taxpayer money to fund medical research?
What happens when CIRM runs out of money?
Why is CIRM still funding work on human embryonic stem cells when we can focus on induced pluripotent cells?
Is this research taking away money from other state services?

What is CIRM?

California’s stem cell agency, the California Institute for Regenerative Medicine, or CIRM, was created by voters in 2004 with the overwhelming passage of Proposition 71, which authorized $3 billion in funding for stem cell research. It was renewed by voters in 2020 with the passage of Proposition 14, giving the agency an additional $5.5 billion. At CIRM our mission is to accelerate stem cell treatments to patients with unmet medical needs.

What does the stem cell agency do?

CIRM funds research that we hope will lead to the development of treatments and cures for a wide range of deadly diseases. So far CIRM is working on treatments for 40 different diseases and our funding has led to 68 clinical trials—meaning they have moved out of the lab and are being tested in people. Around 30 other projects that CIRM supported early on have also progressed to clinical trials.

Why are stem cells important?

The power of stem cells lies in their potential to replace, regenerate or repair damaged cells, tissues or organs. Some therapies, such as bone marrow transplants, already make use of stem cell technology. Other therapies that are in development involve transplanting stem cells into a damaged body part and directing them to grow and transform into healthy tissue to repair the damage. All told, the power of stem cell biology and regenerative medicine has the potential to forever change how doctors treat humankind’s most devastating conditions.

What progress has CIRM made?

Since CIRM started funding research in 2007, we have made tremendous progress. We have funded 68 projects in clinical trials, with another 30+ projects that CIRM supported with early funding also in clinical trials. Good science takes time—remember it took 15 years of focused research to develop the polio vaccine—so it really is quite remarkable to see what stem cell research has accomplished in the same amount of time.

How has CIRM invested the money?

The money has been used to build an entirely new industry in California from the ground up, thus positioning our state as a global leader in stem cell research. Some of the money has been invested in building new research facilities, training the next generation of researchers and bringing some of the best scientists in the world to California.

CIRM funding creates jobs, saves health care costs and creates tax revenue. A 2019 independent Economic Impact Report conducted by the Schaeffer Center for Health Policy and Economics at USC says that CIRM has had a major impact on California’s economy, creating tens of thousands of new jobs, generating hundreds of millions of dollars in new taxes, and producing billions of dollars in additional revenue for the state.  The report looked at the impacts of CIRM funding on both the state and national economy from the start of the Stem Cell Agency in 2004 to the end of 2018. 

The estimated impacts from the report are:

  • $10.7 billion of additional gross output (sales revenue)
  • $641.3 million of additional state/local tax revenues
  • $726.6 million of additional federal tax revenues
  • 56,549 additional full-time equivalent (FTE) jobs, half of which offer salaries considerably higher than the state average

But CIRM’s primary goal has always been advancing the progress of the research itself—the vast majority of CIRM funding has been has been funneled toward projects aimed at ultimately providing treatments and cures for deadly diseases.

Should Californians consider this a good investment?

Absolutely. The people of California should feel proud of their decision to create CIRM, and of the work that the agency has done and continues to do. The money spent has created a whole new industry, making California a worldwide leader in stem cell research. The treatments that result from CIRM funding will not only improve the health of Californians, they will also generate income from sales of those therapies—a portion of the profits from those sales will go straight into the state’s General Fund.

More importantly, since these therapies have the potential to eliminate some of the costs of treating chronic diseases such as diabetes—which costs California alone around $28 billion a year[1]—it will save both the state and every employer that provides health insurance significant money.

A 2019 independent report conducted by the Schaeffer Center for Health Policy & Economics at USC says that a therapy that decreased the incidence of diabetes by 50 percent in Californians over the age of 51 would translate into a gain for the state of $322 billion in social value between now and 2050. Even just reducing diabetes 10% would lead to a gain of $60 billion in social value over the same period. Developing stem cell treatments and cures for other common and deadly diseases could produce multi-billion dollar benefits for California in reduced healthcare costs and improved quality and quantity of life.

Should the state be involved in using taxpayer money to fund medical research?

The people of California knew it was a wise investment when they approved both Proposition 71 and Proposition 14, with a goal of accelerating the development of successful therapies for patients with unmet medical needs. Promoting health is in California’s DNA—California is famous as a world leader in science, health and medicine. It was the first to pass tough laws on climate control and smoking, and the first to introduce smog checks on cars for cleaner air. Creating a pioneering program that has the potential to improve the health of millions of Californians clearly fits into that tradition.

Why is CIRM still funding work on human embryonic stem cells when we can focus on induced pluripotent cells?

Induced pluripotent stem cells, or iPS cells, are very promising and we are funding a number of iPS cell-based research projects. But this kind of technology is still very new and there are many unanswered questions about the safety and effectiveness of these cells over other stem cell types. As of right now, we don’t know which kind of stem cell might work best for which therapy, and embryonic stem cells are still the gold standard. Remember some years ago when 33 Chilean miners were trapped underground after a mine collapsed? Rescuers were in a race against time to save them so they dug three different tunnels, using three different methods. They didn’t know which method would work but realized they couldn’t afford to take a gamble on doing one at a time, so they used all three methods. They got the miners out. We don’t think we can afford to gamble on guessing which kind of stem cell will be best, so we continue working with and funding many different kinds.  

Is this research taking away money from other state services?

No. The money doesn’t come out of the state’s General Fund and so it wouldn’t otherwise go to schools, transportation or any other kind of service. This is money raised from the sale of bonds. No other state service suffers or gets less money because of us. In fact, CIRM hopes these vital services will actually see more money in time, as a portion of the profits generated from the therapies we have helped develop will be added to the state’s General Fund.

{1} Figures come from a 2012 study by the American Diabetes Association.

Last updated 4/17