Wednesday, October 07, 2009

No New Stem Cell Cash in Latest California Bond Sale

California's sale of $4.5 billion in bonds this week will not mean fresh cash for the California stem cell agency.

In response to a query, Tom Dresslar, spokesman for the state treasurer's office, said some of the proceeds will go to refinance earlier debt taken on to support the state research operation. But he said no additional funds will go to CIRM.

The agency currently has enough cash to operate roughly through the end of next year. Its sole source of any significant revenue is California state bonds.

The agency experienced a cash crunch earlier this year and raised the possibility of marketing state bonds privately. CIRM, however, received a $505 million infusion in April as the result of a $7 billion California bond sale.

Presumably the agency will be in line for some additional bond funding between now and December 2010. Sphere: Related Content


  1. Don Gibbons, CCO CIRM2:21 PM

    More misinformation from Mr. Jensen. CIRM was allotted $118 million in new funds in the latest bond sale, $75 million to go toward new projects and $43 million to cover the loan for the Sanford consortium facility project. We view the latter as critical new money because it takes debt off our books that could have eaten into our cash flow. The state was also able to convert $250 million of our debt from taxable to lower cost tax-exempt bonds, which is not something the voters of California would consider inconsequential.

  2. Thank you for your comment, Don. I have posted an item, calling special attention to it. As you know, the information came from the state treasurer's office. I am checking with them to say what they have to say about this matter.