Printed Friday, November 2, 2007 in the Newark Star-Ledger
by Wise Young, Richard H. Shindell chairman in neuroscience at the W.M. Keck Center for Collaborative Neuroscience at Rutgers University
The stem cell referendum on Tuesday's ballot proposes to borrow $450 million over 10 years to fund stem cell research in New Jersey. To estimate the interest cost on this bond, let's conservatively assume an annual interest rate of 5 percent. The current interest rates on tax-exempt bonds in New Jersey are 3.88 to 4.10 percent. Five percent interest on $45 million is $2.25 million in the first year of the bond. Since there are 8.7 million state residents, this comes to 26 cents per person.
In the second year, another $45 million would be borrowed, and interest per resident would be 52 cents. In the 10th year, the interest would be $2.59 per resident. Averaged over 10 years, the interest payment per resident would be $1.42 a year, less than a penny a day.
So what will the New Jersey residents get in return for borrowing this money? Last week, Joseph Seneca, a Rutgers economist, re leased a detailed economic analysis that estimates New Jersey will reap nearly $2.2 billion in direct economic benefits from the investment. He pointed out that if the private sector put in matching funds, this would add another $2 billion to the economy. Finally, if the research is successful in provid ing effective therapies for just six diseases, the state would save more than $72 billion in health care costs.
There would be an economic cost to not passing the referendum. All ex perts agree that stem cells represent the future of the therapeutics. Much of New Jersey's economy de pends on this industry. Although New Jersey was the first state to start funding stem cell research, many other states have moved ahead of New Jersey. California passed a $3 billion bond issue to fund human embryonic stem cell research. New York passed $650 million for "regenerative medicine" or stem cell research. Connecticut is investing $100 million. Maryland is investing $25 million a year. New Jersey will lose its therapeutic in dustry unless it invests.
Therapeutics companies move where the research is. Let's say that each laboratory spends a million a year. There are probably 100 laboratories now doing stem cell- related work in New Jersey. If the referendum fails and most of these laboratories move out of the state, New Jersey's economy will lose more than $100 million a year. If the referendum brought a hundred laboratories to the state, it would gain more than $100 million a year in direct economic benefits.
Some additional benefits for New Jersey: The funds would support clinical trials in the state. People wouldn't have to wait for therapies to come to the state or have to go out of state for clinical trials.
The investment would build and strengthen New Jersey universities and research institutions.
Other benefits are priceless. What is it worth to the people of New Jersey to free people from having to take insulin injections for the rest of their lives, therapies that can make people walk after brain and spinal cord injury and treatments that can slow down or re verse Parkinson's or Alzheimer's disease? What is the pride of hav ing cured people worth?
The referendum explicitly for bids use of the funds for research that produces clones of humans, including human fetuses, by so matic cell nuclear transfer. The funds will support all types of stem cell research, including research involving umbilical cord blood and bone marrow stem cells. All the research will be competitively awarded only after rigorous, independent peer and ethical review of the research applications. Only the best science will be funded.
It is right that the people of New Jersey choose whether they want to make this investment. Is this worthwhile? It is the most worthwhile choice and the impor tant decision that New Jersey vot ers have to make in the election.
The world is looking at New Jersey to see how its people will vote on this subject.
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