Analysis recommends no increase for Md. Stem Cell Research Fund

BYLINE: Karen Buckelew

The Maryland Stem Cell Research Fund will not receive its proposed 66.7 percent funding increase if lawmakers accept the recommendations of a legislative analysis. Gov. Martin O'Malley proposed in his first budget as governor adding $10 million to the fund for fiscal 2008, bringing its total to $25 million for use in grants to researchers working with stem cells.

But an operating budget analysis prepared by the state Department of Legislative Services advises lawmakers against the increase. "It is not known whether all of the $15 million in fiscal 2007 funds will be spent in 2007," the analysis reads, "and so the program should receive no more than level funding. " State senators Tuesday heard testimony on the fund as they considered the budget of the Maryland Technology Development Corp., known as TEDCO, in the Budget and Taxation Committee's Subcommittee on Education, Business and Administration. TEDCO administers the program, and the stem cell funds fall within its budget. Linda Powers, chair of the 15-member appointed commission that governs the fund, said she was "puzzled" by the DLS recommendation, prepared by analyst Monica L. Kearns. "The analyst has only given one remarkably non-substantive reason for the proposed cut," said Powers, a managing director and co-founder of Bethesda's Toucan Capital Corp., a venture fund that focuses on stem cell firms. The fund's first solicitation for proposals received 86 applications for scientific projects worth a total of $80.8 million - more than five times the available funds, Powers noted. Based on that demand, there is no question that all of the $15 million will be dispersed this year, she said. "I would have to believe that analyst hasn't seen or delved into those numbers," she added as she waited to testify before the subcommittee. The House of Delegates hearing is scheduled for Thursday. Renee M. Winsky, newly named executive director of TEDCO, was set to testify at both hearings as well. Legislators are not required to accept the DLS recommendation, and often do not. They may cut from the governor's proposal any amount they choose, even eliminating funding for the stem cell program altogether. O'Malley's move to bolster the stem cell research fund in his first budget as governor may resonate with legislators, according to the commissioners. "He's made a pretty loud and clear statement," Powers said. The commission has not yet allocated its first round of funding. A peer review committee of about 30 stem cell science experts from across the nation reviewed the applications for scientific merit at a pair of two-day meetings held this month. The scientists found virtually all the applications had scientific merit, then ranked them on a scale of one to five, Powers said. The full commission will make its final decision on which applications to fund at a closed meeting later next month.