Economic Report on California Proposition 71

Analysis Group academic affiliate Laurence Baker, professor of health research and policy at the Stanford University School of Medicine, and Managing Principal Bruce F. Deal coauthored an economic analysis of the costs and benefits of California Proposition 71, The Stem Cell Research and Cures Initiative. Over a period of 10 years, the initiative would authorize nearly $3 billion in tax-free, general obligation state bonds to support stem cell research in hospitals, medical schools, universities, and research institutions. In their report, which was commissioned by Californians for Stem Cell Research and Cures, Dr. Baker and Mr. Deal analyzed the expected debt service costs of the bonds as well as the state tax and royalty revenue, health cost savings, and new economic activity that could result from the initiative. They concluded that "Proposition 71 is capable of paying for itself during the payback period alone with the possibility of continuing to generate billions of dollars in revenues and savings for the State of California for decades after that."

Proposition 71 passed in November 2004. Analysis Group was also retained to study economic costs and benefits of stem cell research in Missouri.