By Ann E. Marimow and John Wagner
Thursday, February 9, 2006

The Maryland General Assembly got its first look yesterday at how $20 million in state money for stem cell research would be awarded to scientists and private companies by the state-founded corporation that Gov. Robert L. Ehrlich Jr. (R) wants to charge with the task.

Frank A. Adams , chairman of the Maryland Technology Development Corp., or Tedco, board, said the agency would consider grants for research using the controversial embryonic stem cells, as well as adult cells.

The board has "no predisposed point of view" and is interested in "what has the best chance of success, period," he said.

The hearing came on a day when Ehrlich visited a Baltimore company that conducts groundbreaking research with adult stem cells. Ehrlich said he was very impressed with the progress Osiris Therapeutics Inc. is making toward treatment of several conditions, including heart muscle damage and bone loss.

"Very powerful presentation," Ehrlich told employees during a tour of the company.

Under Ehrlich's plan, the Tedco board would appoint a seven-member advisory panel of academicians and representatives from biotech and venture capital companies to set policy and make final decisions about the funding.

A second panel of experts in stem cell biology, related research and entrepreneurial businesses would review proposals and make recommendations. That board would be modeled on the scientific peer review panels of the National Institutes of Health and the National Science Foundation, Adams said.

Tedco representatives expect to award grants of $500,000 to $1.5 million for up to three years.

At the hearing, the nonpartisan Department of Legislative Services recommended that the General Assembly cut Ehrlich's proposal to $10 million and release the money only after it passes legislation to designate how it should be used.

At issue is what type of research proposals the state should fund. Some lawmakers want to focus on the more controversial embryonic research, which some conservative lawmakers compare to abortion. President Bush has restricted federal money for that work, prompting some states to come up with funding for the research.

Ehrlich said his decision to spotlight a company doing work on adult cells did not telegraph his preference. "Anything you do with regard to stem cells on any particular day is going to be analyzed to the nth degree," he said, reiterating his view that scientists, not politicians, should make those decisions.

Del. Frank S. Turner (D-Howard) said it was unlikely that the General Assembly would provide the $20 million without some strings. "It's unrealistic for us not to do anything and just say, 'Here it is. Go spend it.' "

House Democratic leaders announced their answer to rising property assessments in Maryland yesterday, introducing a bill to provide tax relief for low- and moderate-income homeowners.

The legislation would expand an existing tax credit by lifting the limits on property value from $150,000 to $250,000 and increasing restrictions on net worth from $200,000 to $300,000.

Since the program was last revised in 1989, assessments on residential properties in Maryland have increased 91 percent, on average.

Del. Brian K. McHale (D-Baltimore) said the bill would ensure that seniors and low-income homeowners "would not be taxed out of their homes."

The governor has proposed a similar change to the tax credit program.

"The good news is everybody is trying to address the issue to try to solve a problem that is important to everyone," House Speaker Michael E. Busch (D-Anne Arundel) said.