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Editorial: Stem cell chief's exit is long overdue

Published: Saturday, Jun. 20, 2009 - 12:00 am | Page 14A

Palo Alto developer Robert Klein II led the ballot campaign in 2004 to create California's stem cell research institute. He wrote the initiative, ensuring that only he would chair the institute's oversight board, which is charged with handling $3 billion in public money.

For more than four years, this page has detailed how Klein's all-powerful control has not been in the best interest of either taxpayers or the stem cell agency, the California Institute for Regenerative Medicine.

Now it appears that Klein will step down from CIRM at the end of 2010 – more than 18 months away.

Klein is an impassioned, tenacious advocate for stem cell research, but he is precisely the wrong person to head a government science agency. Chairing a 29-member board that is far too large and rife with conflicts of interest, Klein has operated the institute in a smothering manner, with little regard to transparency or lines of authority.

Since 2005, Klein has run off talented scientists, such as former CIRM President Zach Hall. He has helped direct millions of dollars to contracts for law firms and public relations consultants – money that could have gone to science.

Whenever any lawmaker or outside group scrutinizes his decisions or expenditures, Klein cranks up his political attack machine. While serving as a public official, Klein has led or has been affiliated with at least two nonprofit groups that have gone after legislators who sought to reform CIRM.

Assuming he doesn't change his mind, Klein's pending departure creates an opportunity for this institute to repair its reputation. It can start by examining its internal expenditures. As the California Stem Cell Report has noted, the institute has proposed a budget for next year in which salaries and benefits will rise to $7.4 million for its 47 employees.

That's about $150,000 per employee, an increase of $1.9 million over the previous year. The institute is also proposing to spend about $3 million in outside contracts.

In the midst of a state budget crisis, the stem cell institute is an island, spending freely, accountable to no one. It's an island that Klein created and may one day sail away from.


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