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California Proposition 38 would authorize up to $8.4 billion in bonds for immune-system research, with half potentially going to one qualifying institute. CalMatters reported that the likely recipient, the California Institute for Immunology and Immunotherapy, had three employees last month, far below the staffing plan in its UCLA agreement. The measure is on the November ballot, and the state would decide whether the institute qualifies for funding.
California’s Proposition 38 could direct $4.2 billion in bond funding to the California Institute for Immunology and Immunotherapy, which had three employees last month, according to a CalMatters report published October 21. The institute’s staffing was far below its UCLA affiliation agreement’s hiring plan, raising questions about its readiness to manage a large public award if voters approve the measure.
Proposition 38 would authorize up to $8.4 billion in bonds for research into diseases and treatments involving the immune system, with an emphasis on Alzheimer’s disease, cancer and heart disease. Bonds are public debt that must be repaid. The measure’s language reserves half of the funds for a single, unnamed research institute if it meets detailed eligibility criteria. CalMatters previously reported that the California Institute for Immunology and Immunotherapy (CIII) is the only California institute it identified as currently meeting those criteria.
The institute is affiliated with UCLA and is a founding tenant at a UCLA-owned research park in West Los Angeles, where it is leasing 235,000 square feet of research space, according to the institute. A five-year business plan included in the parties’ August 2024 affiliation agreement called for about 51 hires between summer 2024 and summer 2025, including executives, scientists and other staff. The agreement also projected roughly 90 additional hires between 2025 and 2027.
At a September 16 UC Regents meeting, UCLA Health chief executive and vice chancellor for health sciences John Mazziotta, who also sits on the institute’s board, said CIII had hired a chief operating officer, a general counsel and a scientific adviser. He said the institute was well into its search for a director. Mazziotta also told regents it had spent $20 million total on operating expenses, hires and other costs so far. The business plan had projected $25 million for personnel and $45 million for operating expenses across fiscal years 2024-25 and 2025-26, plus $167 million for capital expenses over that period.
A $4.2 Billion Readiness Test
The gap between the institute’s planned staffing and the three hires reported by Mazziotta matters because the ballot measure could put a large share of public borrowing behind one organization. If voters approve Proposition 38, the institute’s ability to recruit researchers, establish operations and account for public funds will be central to whether the proposed research can proceed as intended. The bond would create a state repayment obligation, while the institute would be positioned to receive a substantial allocation if it meets the measure’s criteria.
The dispute also concerns how California should support biomedical research. Supporters say state funding is needed to stabilize research as President Donald Trump has repeatedly attempted to cut existing and future federal science grants. Critics argue the measure is narrowly designed around one institute and leaves established university, hospital and nonprofit laboratories out of the funding structure. Those are competing arguments about the measure; they do not establish whether CIII will ultimately be ready or whether its research will produce particular outcomes.
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How Proposition 38 Selects a Recipient
The measure would distribute up to $8.4 billion through bonds for immune-system research. Its provisions specify that one unnamed institute could receive half the funds, provided it satisfies detailed conditions. Because CalMatters identified CIII as the only California institute currently meeting those conditions, campaign representatives have acknowledged it is a likely recipient, while the formal award decision would remain with the state.
CIII’s principal funder is billionaire physician Gary K. Michelson, who wrote Proposition 38 and is the largest donor to its political campaign, according to the report. The affiliation agreement with UCLA sets terms for the relationship, including a requirement that the institute pay UCLA 7.5% of net revenue from drugs and technologies developed by its staff. The UCLA research park facility that will house the institute is not expected to be fully built until at least late 2028, according to the source material.
“The institute had hired just three employees: a chief operating officer, a general counsel, and a scientific advisor.”
— John Mazziotta, UCLA Health CEO and institute board member, at the September 16 UC Regents meeting
Staffing, Readiness and Final Award
It is not yet clear why the institute had three employees last month despite the earlier plan for about 51 hires by summer 2025, or how quickly it can recruit the research teams and other staff described in that plan. The institute’s written response to CalMatters did not address the staffing shortfall, according to the report. Its spokesperson instead pointed to the UCLA affiliation agreement and completion of a state environmental review for the planned facility.
Proposition 38 has not yet been decided by voters, and CIII has not been formally awarded bond funds. The campaign said the institute would have to be ready to begin work, but the detailed state process for determining readiness and the timing of any funding decision were not described in the report. The research park is also not expected to be fully built until at least late 2028, leaving questions about how planned research operations and facilities would align with any award schedule.
November Vote and State Review
California voters are scheduled to decide Proposition 38 in November 2026. If it passes, the California Department of Public Health would determine whether the institute meets the requirements to receive half of the bond funding, according to the campaign. The measure’s approval would authorize the bonds; it would not, on its own, constitute a final grant award to CIII.
Key developments to watch include the institute’s hiring progress, the construction timeline for the UCLA research park, and the state’s criteria and timetable for assessing recipient readiness. The institute, UCLA and state officials have not provided further details in the source report about when those decisions would be made.
Key Questions
What would Proposition 38 fund?
It would authorize up to $8.4 billion in bonds for research on immune-system diseases and treatments, with an emphasis on Alzheimer’s disease, cancer and heart disease. Bonds are repaid as public debt.
Why could CIII receive $4.2 billion?
The measure’s language assigns half of the bond funds to one unnamed institute if it meets detailed criteria. CalMatters reported that CIII is the only California institute it identified as currently meeting those requirements, making it a likely recipient, not a confirmed one.
How many people did the institute employ?
At the September 16 UC Regents meeting, John Mazziotta said CIII had hired three employees: a chief operating officer, a general counsel and a scientific adviser. The institute’s plan called for about 51 hires by summer 2025.
Has the institute been awarded the money?
No. Voters must first approve Proposition 38, and the California Department of Public Health would then decide whether the institute qualifies for the allocation. The campaign said the institute must be ready to begin work.
Source: rss
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