California Ballot Measure Sends $4 Billion to Billionaire’s Institute

California voters have approved Proposition 38, an $8.4 billion bond measure that reserves half its funds—over $4 billion—for a single immunology institute. The measure’s eligibility criteria currently match only one organization: the California Institute for Immunology and Immunotherapy (CIII). Proposition 38 was written and largely funded by billionaire Gary Michelson, who also serves as chair of CIII. The institute, however, does not yet have a named director and is operating from a building that remains under construction.

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The measure’s passage has sparked debate over transparency and the use of taxpayer funds, as the requirements appear tailored to benefit CIII. Critics have pointed to the close relationship between the measure’s author and the likely recipient, raising questions about oversight and readiness.

Proposition 38 passed with about 54% of the vote. It authorizes the state to borrow $8.4 billion for immunology and immunotherapy research, with taxpayers expected to repay the bonds from the General Fund at an estimated $500 million to $600 million annually for approximately 20 years. While the measure does not explicitly name CIII, its requirements—such as being a nonprofit focused on immunology, affiliated with a University of California campus, and established before 2025—currently fit only CIII.

Funding and Institute Details

CIII is chaired by Gary Michelson, who wrote the ballot measure and provided nearly all of the campaign’s funding. UCLA Health CEO John Mazziotta, a CIII board member, told University of California regents in September that the institute had hired three employees: a chief operating officer, a general counsel, and a scientific adviser. According to a Sullivan & Cromwell alumni page, Rosemary Bradley holds both the chief operating officer and general counsel positions. The identity of the scientific adviser has not been disclosed, and no director has been named for the institute.

CIII’s own milestones page lists the hiring of the chief operating officer and general counsel in March, but does not provide names. The institute’s most recent Form 990 filings, covering the year ending June 2025, list zero employees. This is despite the institute’s five-year business plan, which had called for dozens of hires by this stage.

Building Status and Oversight

The institute is to be housed at the former Westside Pavilion near UCLA. The state has already spent about $200 million on the site. However, the building is not expected to be completed until at least mid-to-late 2028. According to Mazziotta’s comments to UC regents, the institute still requires approximately $100 million more for construction.

Robin Swanson, a spokesperson for the Yes on Prop 38 campaign, said the California Department of Public Health (CDPH) will be responsible for evaluating applicants based on the measure’s eligibility criteria.

"California Department of Public Health (CDPH) is responsible for evaluating applicants based on the measure’s eligibility criteria."

— Robin Swanson, Yes on Prop 38 campaign spokesperson

The measure does not name the institute to receive the funds, instead establishing rules that only CIII currently meets. The criteria require the recipient to be a nonprofit established before 2025, focused on immunology and immunotherapy research, and affiliated with a University of California campus.

Broader Context and Reactions

The allocation of such a large sum to a single, not-yet-operational institute has drawn scrutiny from some lawmakers and public interest groups. The state’s investment in the site and the institute’s limited staffing have raised questions about readiness, oversight, and the appropriateness of directing public funds to an organization so closely linked to the measure’s author.

Supporters of Proposition 38 argue that the Department of Public Health will ensure proper evaluation and compliance with the measure’s requirements. They point to the potential for major advances in immunology and immunotherapy research as justification for the investment. However, as of now, no director has been named for CIII, and the building remains under construction. The institute’s ability to ramp up operations and fulfill its business plan remains to be seen as the state prepares to allocate the newly approved funds.