Washington state voters are backing Senate Joint Resolution 8201, which proposes a significant alteration to the state constitution, enabling broader investment options for the WA Cares long-term care program. Preliminary results indicate that as of 9 p.m., 56.8% of voters have approved the measure, while 43.2% are opposed, with over 1 million votes counted.
Currently, the state’s constitution imposes limitations on investing public funds in private stocks or equities. Proponents of SJR 8201 believe that expanding investment opportunities to include stocks could dramatically enhance the program’s fund, which is currently valued at approximately $2.5 billion. Advocates project that over a span of 50 years, this amendment could increase the fund by an estimated $67 billion, providing additional financial security for the WA Cares initiative. This security is deemed essential for maintaining affordable premiums for workers and facilitating enhancements in benefits over time.
WA Cares, funded by a mandatory 0.58% payroll deduction from employees, commenced collecting contributions in 2023 and is set to begin distributing benefits in 2026 to qualifying residents requiring assistance with daily living activities. The full benefit is slated to be $36,500 in its inception year, with annual adjustments for inflation.
Heather Weiner, representing Approve 2081, emphasized during a recent debate that the funds generated through these investments are crucial for addressing the long-term care needs of Washington residents. She argued that 70% of people will require some level of long-term assistance and that the proposed investments would help ensure the program’s funds remain untouched by potential legislative actions.
Conversely, critics of SJR 8201 express concerns over the risks associated with investing taxpayer money in the stock market. Opponents argue that market volatility could jeopardize benefits or compel taxpayers to shoulder increased costs should the investments falter. Senator Bob Hasegawa, a vocal opponent, highlighted the inherent unpredictability of the stock market, advocating instead for traditional, more stable investment avenues, like municipal bonds.
During the debate, Hasegawa cited historical market crashes, including the Great Recession and the Great Depression, to support his standpoint. He warned that reliance on the stock market’s performance is precarious, noting that substantial downturns can lead to prolonged recovery periods.
A similar measure to SJR 8201 was presented to voters in 2020 but was ultimately rejected. The deadline for the Washington Secretary of State’s Office to certify these election results is December 4.
