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CALIFORNIA: Governor Aims Ax At Small-Change Programs
But critics say the impact, on stem-cell research, for example, will be significant.

Tuesday, January 13, 2004

By JIM HINCH, HANH KIM QUACH and MAYRAV SAAR
The Orange County Register

SACRAMENTO – Moving quickly to seize the reins of state spending, Gov. Arnold Schwarzenegger has proposed repealing
numerous recently enacted government programs ranging from gambling prevention to prenatal HIV testing to guidelines
for stem-cell research.

The repeals, listed in a memo written Friday but made public Monday, perplexed lawmakers and angered interest groups
across the state, who said Schwarzenegger was indiscriminately cutting cost-effective programs that have little effect
on the state budget.

The repeals, which need legislative approval, would shave $5 million from the $76 billion general fund.

Advocates for stem-cell research were especially incensed by Schwarzenegger's proposed repeal of a law that would
establish an oversight commission to monitor stem- cell research and ensure that scientists don't sell embryos or
perform research on fetal tissue without consent.

"I was kind of shocked," said Greg Wasson, a field representative for the Parkinson's Action Network.

Without state oversight ensuring that California stem- cell research meets nationally recognized standards, scientists
will take their labs and grant dollars to other states, he said.

Administration officials said the proposed cuts are a routine part of every budget cycle and do not reflect the
Republican governor's positions on particular policies.

"The issue is (the stem-cell law) is a bill that does not have a funding source for it," said H.D. Palmer, Finance
Department spokesman. "It's not a policy statement on stem-cell research."

Research advocates said such statements do little to quell fears among scientists that Schwarzenegger, mindful of
members of his party who oppose abortion, is signaling a more tepid commitment to stem-cell research than his
predecessor, who signed the guidelines law and an earlier law legalizing the research.

State Sen. Deborah Ortiz, D-Sacramento, who authored the guidelines law, said its repeal could harm efforts to pass a
proposed November ballot initiative for $3 billion in state bonds to fund stem-cell research.

Stem cells, found in embryonic and adult tissues, are special cells that can be induced to replace damaged cells.
Scientists consider them key to finding cures for diseases ranging from cancer to Parkinson's.

The U.S. government prohibits federal money from funding stem-cell research. But scientists said they considered the
guidelines law a step toward funding stem-cell research with state dollars.

Existing stem-cell research will not be affected by the repeal, said Hans Keirstead, a researcher at the Reeve-Irvine
Research Center at the University of California, Irvine. But anything that casts doubt on the legitimacy of the
research in California could dry up funding sources, placing already hard-to-get stem cells even further out of reach,
Keirstead said.

In some cases, the programs Schwarzenegger targeted were self-sufficient and the repeals will not save the state's
operating budget any money.

Assemblyman Jerome Horton, D-Inglewood, authored two such bills. One would use American Indian gaming money to set up a
gambling- prevention program. Another would have forced tobacco sellers to pay fees to police to prevent smuggling and
tobacco sales to minors.

"He is taking $3 million out of the gambling-addiction program that benefits the people of California and giving it
back to the tribes," Horton said. "This gives off the appearance that they're accomplishing something when, in fact,
they're accomplishing nothing. ... It comes real close to being stupid."

Palmer said the state's fiscal condition requires such moves. "Given the fact that we had to close a $14 billion budget
gap, these proposals are reasonable," he said.
Register staff writer Gary Robbins contributed to this report.

SOURCE: The Orange County Register
http://tinyurl.com/2nqj2

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