Stem Cell Agency Calls Off Budget Session: No Public Info Available

The California stem cell agency today cancelled its Thursday review of its proposed budget for the next fiscal year after it failed to supply any information to the public on the spending plan.

The agency did not offer any explanation for the postponement of the meeting of the directors' Finance Subcommittee. Don Gibbons, CIRM's chief communications officer, also did not respond to a query early today from the California Stem Cell Report concerning the reasons for cancellation of the session.

On Tuesday, in an item headlined, “CIRM Stiffs the Public on Spending Plan," we reported that the $3 billion agency had “extended its practice of withholding important information from the public – this time in connection with its proposed budget for 2010-11.”

The item also said,

“At last year's budget meeting of the Finance Subcommitte, five CIRM directors publicly expressed displeasure at the lack of material made available to them concerning the budget. The situation was not much better at the full directors meeting later last June. The budget documents were woefully inadequate and were not responsive to questions raised earlier at the Finance Subcommittee meeting.

“The budget failed to make meaningful year-to-year comparisons and came late to both directors and the public. And then CIRM Chairman Robert Klein – in a bit of financial flim-flam – described the spending plan as a three percent decrease, when it actually was a 25 percent increase. CIRM compounded that misrepresentation by enshrining it -- albeit with qualifiers -- in a press release.”

We also queried Gibbons concerning an earlier version of the Finance Subcommittee agenda which said it would consider “funding sources to cover budget requirements.” That language was dropped from later versions of the agenda.

On Tuesday, Gibbons said,

“That wording was a cut-and-paste carryover from a prior meeting and in light of our current funding situation, it is no longer relevant.”

His comment apparently referred to the fact that CIRM now has bond funding that will carry it through the end of 2011.

Automated Info from CIRM

For those of you who want information directly from the California stem cell agency, here is a link to a list of the RSS feeds that CIRM provides.

Using the RSS process will send press releases, announcements and meeting agendas automatically to your computer. Announcements are often newsworthy, but CIRM does not consider them news releases.

CIRM and Aussie Hopes

Earlier today we carried an item about the hope of some Australian stem cell researchers that California would come to their financial aid.

We queried CIRM concerning the news report. Don Gibbons, CIRM's chief communications officer, replied,

“We are in discussion with the the Australian MRC regarding a potential
agreement like the one we have already for the state of Victoria. It would
be bound by the same stipulations as all our other international agreements,
which means California money would only fund Californians. I think the folks
there hope the opportunity to leverage both their monetary and intellectual
capital with ours might encourage more government support there.”

Gibbons also said the reporter on the Australian story, Andrew Trounson, was not related to Alan Trounson, the president of CIRM and former Australian stem cell researcher.

CIRM Stiffs Public on Spending Plan

The California stem cell agency this week extended its practice of withholding important information from the public – this time in connection with its proposed budget for 2010-11.

In just two days, the directors' Finance Subcommittee will consider the agency's operational spending plans, but not one word is available to the public or other interested parties.

The move is in keeping with CIRM's de facto policy of withholding background information on the subjects of many of its meetings until just prior to the actual sessions. Sometimes the material is not posted until after the sessions and is not available to directors at the meetings.

At last year's budget meeting of the Finance Subcommitte, five CIRM directors publicly expressed displeasure at the lack of material made available to them concerning the budget. The situation was not much better at the full directors meeting later last June. The budget documents were woefully inadequate and were not responsive to questions raised earlier at the Finance Subcommittee meeting.

The budget failed to make meaningful year-to-year comparisons and came late to both directors and the public. And then CIRM Chairman Robert Klein – in a bit of financial flim-flam – described the spending plan as a three percent decrease, when it actually was a 25 percent increase. CIRM compounded that misrepresentation by enshrining it -- albeit with qualifiers -- in a press release.

An early version of Thursday's Finance Subcommittee agenda included consideration of “funding sources to cover budget requirements.” That topic has been removed from the budget with no explanation. We are querying CIRM concerning the matter.

Aussie Stem Cell Scientists Looking for Help From California

Life is not so good for Australian stem cell researchers, and they are hoping that the $3 billion California stem cell agency can make things better.

At least so says a news report from Down Under. According to The Australian newspaper, proposed government funding for stem cell research will be slashed by 50 percent next year.

However, the article said,

“The scientists are hoping negotiations for a potential joint funding deal between the National Health and Medical Research Council and the $3 billion California Institute for Regenerative Medicine will deliver extra cash.

“The California institute, run by Australian stem cell pioneer Alan Trounson, has a joint deal with the Victorian government.

“Speaking from San Francisco, Professor Trounson told The Australian he was hopeful an agreement could be reached.

"'We can fund research together or we can do it independently, but if you do it independently you have to resource these teams adequately,' he said.”

Trounson was director of the Monash Immunology and Stem Cell Laboratories at Monash University prior to joining CIRM in 2008.

It is not clear how California could legally provide meaningfiul financial assistance to Australian stem cell researchers. CIRM is barred from spending research funds out-of-state, which Trounson apparently refers to in his comment about “independently” funding research.

We are querying CIRM regarding The Australian article, including whether the writer, Andrew Trounson, is related to Alan Trounson.

A Commentary on Cobbling Together CIRM Numbers

An anonymous reader has left a cogent comment on the “$210,000 PR help” item. The reader says, in part,

“No one should have to 'cobble' together numbers in order to engage a public entity in thoughtful debate about the work of, for, and funded by, the citizens of the State of California.”

You can read the full comment by clicking on the word “comment” at the end of the PR item, which will take you as well to other related comments, including one from CIRM.

Move to Allow Stem Cell Agency More Staff Advances in Legislature

The magic number now for CIRM in the California state legislature is 56.

That's the number of votes required in the 80-member state Assembly for passage of legislation that would remove the 50-person cap on the size of the staff at the $3 billion agency.

The bill, SB1064 by Sen. Elaine Kontominas Alquist, D-San Jose, cleared the Senate on a 33-0 vote on Thursday. The vote was pretty much a foregone conclusion, given that the bill has the support of Senate leadership. It now goes to the Assembly where it faces two committee hearings before reaching the floor. Approval is likely in the committees, but it is a bit trickier on the Assembly floor.

It only takes 15 lawmakers, either not voting or voting no on the measure, to block the bill. That's because Prop. 71, which created CIRM, enshrined in state law a requirement for a 70 percent vote to change the law concerning the stem cell agency. The rare and ill-considered super, super-majority provision gives a handful of persons extraordinary control over the fate of the bill. It would take only a couple of loopy lawmakers to reject the legislation, given the customary voting patterns in the Assembly.

CIRM dearly wants the employee cap removed. CIRM President Alan Trounson has warned that the quality of the agency's work will suffer without its removal. The limit was written into the 10,000-word initiative by CIRM Chairman Robert Klein.

Klein and 29-member CIRM board of directors have endorsed the Alquist bill, the first time they have given the nod to legislation that would affect the agency.

Here is a link to the analysis provided to lawmakers for the vote on the Senate floor.

CIRM Directors Judge Klein's Performance This Week

Directors of the California stem cell agency on Thursday will formally evaluate the performance of its chairman, Robert Klein, for the first time in five years.

Klein has headed the $3 billion agency since its inception, on a vote of its 29-member board of directors in December 2004. Initially, Klein, a wealthy Palo Alto real estate investment banker, took no salary and testified in court that he did not consider himself a state employee. However, he asked for compensation in 2008. The board agreed to give him $150,000 annually for what it defined as a half-time job.

Earlier this year, the directors' Evaluation Subcommittee held its first meeting to come up with procedures for evaluating Klein, the two vice chairmen,(Art Torres and Duane Roth) and CIRM President Alan Trounson. The transcript of that session can be found here.

While Klein has not had a formal evaluation during his tenure, directors discussed his performance  during the closed-door session in which they set his salary. Publicly, directors are generally effusive in their praise of Klein. Privately, some are not entirely happy. But it is clear that Klein has been the dominant force – which is probably an understatement – at CIRM since 2004.

Thursday's two-hour Evaluation teleconference meeting will begin with a public session, but is expected to promptly go into a closed-door session to deal with personnel matters(Klein's evaluation), a normal procedure permitted under state law. Following the executive session, the subcommittee is expected to reconvene and report any action that may have been taken.

Klein is a member of the Evaluation Subcommittee but is expected to recused from deliberations involving him.

CIRM Seeking $210,000 in PR Help

If you are looking for a job in PR involving a cutting edge enterprise immersed in academia, science, business and government/politics, there is a possibility at the $3 billion California stem cell agency.

The agency has posted an RFP for a “communications outreach coordinator” along with an RFP for a “public communications services” contract.

The contracts are part of a communications effort at CIRM that runs in the neighborhood of $1 million a year.


The new coordinator position is for 11 months at $85,000. The job calls for the individual to promote “a deeper and more sophisticated public awareness of stem cell research and therapy and new funding paradigms for medical research.”

The $125,000-a-year services contract calls for the winning firm to work with CIRM PR staff to “build a foundation of support for the future by creating and cementing relationships with thought leaders and patient advocates, providing proof of the value of CIRM to the state, developing creative ways to demonstrate progress in a field while also setting realistic expectations.”

The contract has been held by Fleishman-Hilliard. CIRM communications chief Don Gibbons said in an email,

“It was always the plan to rebid this every two years. I have encouraged FH to apply for this round. I hope to receive a robust and interesting set of applications.”

Deadline for applications is June 14.

IOM Study of CIRM to Come Before Stem Cell Directors in August

Directors of the California stem cell agency are moving forward with a proposal to commission a blue-ribbon study of their $3 billion effort by the Institute of Medicine.

The directors' new Science Subcommittee on Tuesday voted to bring the proposal, which is now connected to legislation to remove the CIRM staff cap, to the full board in August, said a spokesman for CIRM.

In response to an email query, Don Gibbons, chief communications officer for CIRM, said the panel directed the staff to “work with the leadership of the committee to develop the full scope of work for any IOM(Institute of Medicine)study.”

Gibbons also said that CIRM is seeking to verify that “this scope of work could qualify for the audit required” by SB1064 by Sen. Elaine Kontominas Alquist, D-San Jose. The bill is now on the Senate floor, clearing the Appropriations Committee Thursday on a 10-0 vote.

CIRM and Alquist negotiated a compromise on the legislation that has won the approval of the CIRM board, the first time it has endorsed legislation that would alter the agency's activities. CIRM needs passage of the bill to remove the 50-person cap on CIRM staff.

During the negotiations, proposals for independent performance audits were stripped from the bill – ones that would be conducted under the auspices of the Citizens Financial Accountability Committee, a sister panel to CIRM. As it now stands, a performance audit would be required, but it would be commissioned and paid for by the agency itself. CIRM has made it clear that it is not interested in addressing the accountability concerns raised by the citizens committee.

The bill specifies that use of the state auditor would be acceptable. However, that agency might have difficulty with evaluating the science side of CIRM's performance. The state auditor could presumably hire a consultant to assist in that area. Instead of the state auditor, the stem cell agency could contract with a private firm, which is more likely to be susceptible to suggestions from CIRM about the conduct of the performance audit.

The Institute of Medicine may well tilt to the science side of CIRM's activities with a lesser focus on whether the people of California are getting a good return on their $6 billion (including interest) investment. The institute may also be less interested in CIRM's accountability and openness than would be the case with an audit done for the Citizens Financial Accountability Oversight Committee.

Still to be determined is the cost of the performance audit and timetable. Costs in the neighborhood of $400,000 have been mentioned for a performance audit. An IOM study could run more. To be useful, an audit should be done as quickly as possible. However, it is certain to take many months or more to complete.

CIRM Grant Appeal Rules to Receive More Scrutiny

Directors of the California stem cell agency plan to continue their review of key portions of the grant approval process, including the appeals that have been something of a bugaboo for both applicants and directors.

Don Gibbons, chief communications officer for CIRM, said in an email that the directors' Science Subcommittee on Tuesday concluded that “they need to devote a large chunk of a future committee meeting to just this issue.”

No further details were immediately known although a transcript of the meeting should be available in about 10 days. We will carry a fresh article on the subject at that point.

This is a matter that all California stem cell scientists should pay special attention to. It could have a significant impact on their livelihood.

For more details on the scope of the directors' concern, see this rundown on related documents.

Reading List on CIRM Grant Appeals

Here are links to items related to the CIRM grant appeal process and other pertinent issues. They include CIRM documents and items from the California Stem Cell Report.  


This list was revised and updated July 19, 2010.

Competing for California Stem Cell Cash: Rules of the Game Coming Under Scrutiny 5/18/2010

Stem Cell Grant Competition: Remove CIRM Directors From Appeals? 5/23/10

Sticky, Troubling Appeals by Rejected Researchers Targeted by Stem Cell Agency 7/18/10

CIRM Finally Discloses Grant Appeals Change Proposals 7/19/10

Pre-application review – Most recent CIRM report (Jan. 2010) on the process

Extraordinary petition policy – Version as of 5/25/10

Appeal policy – Version as of 5/25/2010

Transcript of 5/25/10 Science Subcommittee meeting dealing with appeals issue

CIRM Directors Okay Compromise Legislation

Directors of the California stem cell agency today endorsed legislation that would remove the 50-person cap on its staff and which is also aimed at ensuring affordable access to stem cell therapies financed by taxpayers.

In response to a question from the California Stem Cell Report, Don Gibbons, chief communications officer for CIRM, said the vote was unanimous. No further details were disclosed.

It is the first time that CIRM directors have endorsed legislation that would modify the agency's operations.

The legislation, SB1064 by Sen. Elaine Kontominas Alquist, D-San Jose, is now set for approval on Thursday by the Senate Appropriations Committee. Then it will go to the Senate floor.

Here is a link to an earlier item on the bill with more details on its current provisions.

CIRM Comments on New NIH Disclosure Rules

Don Gibbons, chief communications officer for the California stem cell agency, filed this comment today on our post, “Disclosure Proposal Likely to Affect CIRM.”

“Casual readers of your posts will take away the notion that NIH is now requiring scientist peer reviewers to post their financial conflicts on the web. That is not true. Existing NIH policy, which is mirrored by CIRM policy, as well as the revised NIH policy, pertains to recipients of NIH grants, not reviewers. Therefore, why does your headline assert the NIH policy change is "likely to affect CIRM." Yes, most of our grant reviewers have NIH grants and will need to post their financial forms on their home institution web sites, but that does not impact CIRM.”

Our point is that CIRM, whose chairman has repeatedly vowed to adhere to the highest standards of openness and transparency, cannot ignore a new standard for disclosure of industry ties by researchers. Currently CIRM scientific reviewers do not have to disclose publicly their financial interests. Under the new NIH rules, those reviewers will be disclosing their industry ties on their home institution Web sites. If CIRM does not disclose the same industry ties of its reviewers on its Web site, the agency will effectively be flouting what will be THE national standard for disclosure by researchers(albeit a weak one, based on what the Institute of Medicine has to say).

The financial interests of CIRM reviewers do have a potential impact on their grant application decisions, which CIRM acknowledges. As Francis Collins, director of the NIH, said, the rules are needed to preserve the “integrity of the scientific enterprise.”

IOM Proposal Not So Good, Says One CIRM Director

One director of the California stem cell agency is less than enamored of a proposal for a study of the agency by the prestigious Institute of Medicine.

Jonathan Shestack, co-founder of Cure Autism Now and a Hollywood producer, said in an email,

“We may have complaints about CIRM, but they are not of the sort we expect IOM, its cultural and ideological doppelganger, to point out.

“Unless there is a glaring problem, having CIRM pay for an IOM report with its own money is the height of folly and a parody of good government.”

The director's Science Subcommittee is scheduled to take up the proposal at a meeting tomorrow(Tuesday).

State's Top Fiscal Officer Lauds Disclosure Proposal Likely to Affect CIRM

State Controller John Chiang, chairman of a key panel overseeing the California stem cell agency, today praised proposed NIH financial disclosure rules that are almost certain to have an impact on CIRM, one that the agency has avoided so far.

Chiang, the state's top fiscal officer, is head of the Citizens Financial Accountability Oversight Committee(CFAOC), a sister group to CIRM and one that was also created by Prop. 71.

Chiang was commenting on the NIH's new, proposed regulations that are likely to lead to the public disclosure of the financial interests of the reviewers who make de facto decisions on $3 billion in CIRM grants. The stem cell agency has adamantly refused to release the conflict-of-interest information.

In remarks made in response to a query from the California Stem Cell Report, Chiang said,

"I applaud the NIH's proposal to improve transparency and accountability by publicly posting financial disclosure reports of scientists and researchers who receive NIH funding. In January, the Citizens Financial Accountability Oversight Committee, which I chair, voted to post our members' statements of economic interest on our website, and to urge CIRM's governing board members and staff to post the same information on the CIRM website.

"As I said at the time, Californians voted to provide billions of public dollars to find cures for chronic, debilitating and deadly diseases that affect millions of Americans each year. To ensure that taxpayer dollars are spent lawfully, wisely and successfully - and to maintain the public's confidence in their investment - CIRM must pursue the highest standards of transparency."

Although the CFAOC is a creature of the legal draftsmanship of CIRM Chairman Robert Klein and others, the agency has moved away from the panel after facing its questions. In recent legislative negotiations, CIRM representatives were successful in removing a provision that would require the Chiang panel to conduct the first-ever performance audit of the CIRM and its board of directors. Now, the bill, SB1064 by Sen. Elaine Kontominas Alquist, D-San Jose, instead contains a provision for a performance audit that would be commissioned by CIRM itself rather than by an outside group.

The CFOAC recommendations for more accountability and transparency at CIRM triggered a smattering of negative newspaper articles. Michael Hiltzik, a business columnist for the Los Angeles Times, the state's largest newspaper, said CIRM should exemplify not only good science, but good government. A scathing San Diego Union-Tribune editorial carried the headline, “Stem-cell shenanigans / Lawmakers should force state institute to shape up.”

Both Chiang and Gov. Arnold Schwarzenegger post online the statements of their top officials along with their expense claims. Chiang's listing of the material is much more user friendly than the governor's, which are harder to find and harder to navigate.

Stem Cell Grant Competition: Remove CIRM Directors From Appeals?

An individual connected to an institution with a substantial number of CIRM grants sent along a note concerning this Tuesday's examination of the appeal process for grants rejected by scientific reviewers.

The person, who must remain anonymous, said,

“All appeals of grants working group decisions should return to the grants working group. The ICOC (the CIRM board of directors) should NOT be in the business of hearing appeals to scientific reviews. The ICOC is not qualified to render an opinion on such appeals, and the forum is inappropriate for such discussions.”

“In order to legitimize the review process, the scientific review group needs the leading international experts in the field. CIRM should raise the stipend of scientific reviewers in order to attract the participation of the most knowledgeable and respected scientists in stem cell biology and research.”

Complaints about the appeal process for CIRM applications have rumbled around for several years now. Both the board and applicants do not seem pleased with the situation. We should note that rejected applicants would be expected to be unhappy. But for the few applicants who go public with complaints about the process, we hear grumblings from many others. They decline to speak out because of the possibility that they could incur the wrath of an organization that could severely damage their livelihood.

CIRM will never be able to satisfy all parties with the way it handles appeals. That is the nature of such a process. Somebody is going to have to lose out. But most of the affected parties should be able to perceive the process as fair. That means doing more than burying a notice about an examination of the issue in the CIRM Web site. Tuesday's review of the matter was not noticed on the home page of the CIRM Web site. It was not the subject of a press release. Nor was it even brought up as an "announcement."

CIRM has many constituencies, one of which is the research community. It would behoove the organization to listen carefully and AGGRESSIVELY seek out critical analysis of the grant appeal process from scientists -- in both business and academia -- along with constructive suggestions for improvements.

CIRM Takes a Crack at Stem Cell Banking

Stem cell banking is the subject of a day-long CIRM meeting on Wednesday as the stem cell agency wrestles with the costs, distribution and collection of stem cells.

Panels of leading researchers will be taking part in the public session at the Marriot Union Square Hotel in San Francisco. While the workshop will cover a great deal of ground, CIRM singled out one particular area of interest. In a briefing memo, the agency said,

“It would be valuable for the (CIRM) Standards Working Group to give special attention to the segment on privacy, provenance and safety regulation.”

Bee Carries Article on Stem Cell Agency and the State's Financial Crisis

The Sacramento Bee today carried an op-ed piece by yours truly dealing with the California stem cell agency and ballot-box budgeting.

It is a slightly altered version of the item – “Folly of Ballot-Box Budgeting” – that appeared last week on the California Stem Cell Report.

Players in the Negotiations on the CIRM Cap Removal Legislation

Art Torres, co-vice chairman of the California stem cell agency, sent along the following regarding the negotiations on the legislation to remove the 50-person cap on CIRM staff.

Torres, who was a key figure in the process, said,

"Please credit our chief counsel James Harrison and counsel Scott Tocher as our chief negotiators and Duane Roth and Bob Klein, who all played significant roles in our efforts with Senator Alquist and her staff, and Senators Steinberg, Florez and Senator Kehoe and their staffs, who were all very helpful in these negotiations and the input of our president, Alan Trounson, and our scientific staff."