Financial Order, Fiscal Sanity, and Stem Cells

Today's Star-Ledger reports on a protest in which pro-life and anti-tax forces rallied to protest the $270 million already allocated to building the stem cell research centers in New Jersey.

Does that sound off to you? The referendum that we just voted down was for $450 million. So what's the $270 million?

Hmmm. Let's look back at the stem cell issue.

From the AP, December 19, 2006: Corzine to Sign Stem Cell Bill

Governor Corzine is slated to sign into law a bill on Wednesday that would authorize the state to spend 270 million dollars to build research labs, start a cord blood collection program and fund cancer research. . . . State officials predict the bill will boost the state economy, and also help biotechnology companies in the state while attracting others.

That's right. In case you've forgotten, the $450 million was Corzine's second round of financing. The $270 million was already allocated. Again from the AP:

The money [$150 million] to build the [New Brunswick stem cell] facility was included in legislation signed into law in December 2006. The law also authorized $50 million to build stem-cell research facilities at the New Jersey Institute of Technology in Newark, $50 million for a biomedical research center in Camden, $10 million for research at the Garden State Cancer Center in Belleville, and $10 million to do the same at the Eli Katz Umbilical Cord Blood Program in Allendale.

Unless I've got something wrong, that means that Corzine wants the total NJ investment in stem cell research to be $270+$450=$720 million. (Is it any wonder that we don't trust them when they say things like, "I only want half a penny"?) And Corzine knows that we really want to spend this money -- despite what our votes told him -- and we just don't realize it yet. Just ask his spokeswoman.

Lilo Stainton, a spokeswoman for Gov. Jon Corzine, said the governor maintains his staunch support of stem cells and views it as a powerful potential economic engine. To Corzine, she said, the message of last week's election is that voters are calling for "financial order and fiscal sanity."

Lilo has me in stitches. Let's look at the justification for the funding, as stated in a press release issued by Assemblymen Cohen, McKeon, and Voss:

According to a 2005 analysis by Rutgers University, New Jersey's stem-cell initiatives will reap an estimated $1.4 billion in new economic activity for the state and create upwards of 20,000 new jobs over the next 20 years.

I'm assuming that this is the best economic support that the sponsors could come up with -- and it makes me conclude that Democrats are bad at math.

For a supposed benefit of $1.4 billion over 20 years, we were supposed to pay $720 million.

This is what passes for a "powerful potential economic engine" among Democrats. This is what Corzine means by "financial order and fiscal sanity." Indeed, he says, "This is an investment that has a very clear payback."

Governor: we'd be better off if you put the money into T-bills.

I mean, really, if the investment is worth so much, why aren't private businesses flocking to invest? Why can't Corzine support businesses by supporting fiscally conservative legislation instead of putting the New Jersey government in the business of stem cell research? Does he really think that our government is so efficient that we will create facilities more cost-effectively than, say, Merck?

I tend to agree with Steve Lonegan, "the conservative Republican mayor of Bogota in Bergen County":

As for the idea that such an investment could lead to the creation of a vibrant cell culture economy in the state, he dismissed that as a "phony promise."

(I'm not the one who inserted "conservative" in the description of Mayor Lonegan, by the way. As usual, only conservatives are highlighted by ideology; very rarely will you see a Democrat labelled as "liberal" or even the even-more-inappropriate "progressive". But I digress.)

One more thing. Check out this headline: "Corzine Calls for Budget-Slashing Plans". Of course, this article came out before the election, on October 13. Corzine was trying to look fiscally responsible -- like he was making tough decisions. Here's the lede:

With a $3 billion budget deficit looming for next year, the Corzine administration has asked state departments to begin finding ways to cut as much as $3 billion from the next state budget, administration officials said.

Someone -- an unidentified state official -- even said, "The intent is to address the shortfall through reductions in spending, not increases in taxes."

We can pretty much see through that facade, now, can't we? Governor Corzine tells us we need to slash $3 billion from the state budget while also telling us that we should borrow half a billion dollars -- no, make that three quarters of a billion -- to sponsor unproven technology.

No thanks, Governor. If I ran my house that way, I'd go bankrupt. In fact, I have to run my private house conservatively in part because you run your public house so liberally.

By the way, and for the record: I'm opposed to stem cell research on moral grounds, too. I don't talk about it on this blog because this blog is about taxes; however, I don't want anyone to misconstrue my silence on the moral issue as tacit approval.

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