Governors across the nation are trying to find ways to prevent their state finances from falling further in the red as revenues continue to fall while costs for Medicare and unemployment remain high. Deficit-reduction plans announced in two states seek to delay payments and cut funding to biomedical research initiatives that were established to expand the states’ research capacity and generate wealth.
Connecticut Aiming to close a deficit of nearly $470 million in the current fiscal year, Gov. Jodi Rell announced a deficit-mitigation plan that includes delaying payments of $10 million to the state’s Stem Cell Research Fund and $6 million to the Biomedical Research Trust Fund. The Stem Cell Fund was established in 2005 with a budget surplus of $20 million to be used in fiscal years 2006 and 2007 and supplemented with $10 million per year from the Tobacco Settlement Fund through 2015 (see the May 30, 2005 issue of the Digest).