Supporters of a proposed ballot measure in Washington state are advocating for its passage, claiming it offers a straightforward solution to boost returns from the state’s long-term care program. Senate Joint Resolution 8201 aims to amend the state constitution to enable the state to invest payroll taxes from the WA Cares Fund in the stock market, similar to how pension and retirement accounts are managed.
Advocates assert that this approach could lead to higher long-term returns, thereby keeping premiums low and ensuring the sustainability of the program. Greg Markley, secretary treasurer of the Washington State Association of Firefighters and chair of the Washington State Investment Board, stated during a recent press call that the measure is a “no-brainer.”
Currently, the state constitution prohibits public money from being invested in private company stocks and private equity firms, limiting investments to lower-risk options like government bonds and certificates of deposit. If approved by voters in November, the resolution would add the Long-Term Services and Supports Trust account to the list of exempt funds that can be handled more flexibly, allowing for potentially higher returns.
The WA Cares program, which was established to provide long-term care benefits, is funded through a 0.58% tax on worker paychecks in Washington. This program permits individuals to access up to $36,500 in benefits starting in July 2026, a figure that will increase over time to account for inflation. As of March, the fund had accumulated $2 billion since collections began in July 2023.
Opposition to the ballot measure has emerged, with critics labeling it as a form of “gambling in the stock market” with taxpayer dollars. Four state lawmakers—one Democrat and three Republicans—have publicly voiced their disapproval and signed an opposition statement for the voter’s pamphlet. They argue that investing funds in an unstable market poses significant risks. Senator Bob Hasegawa, a prominent opponent who fought against a similar measure in 2020, expressed concerns about breaching fiduciary responsibilities by exposing taxpayer money to market risks.
Hasegawa emphasized the benefits of investing in safer options like municipal bonds, which provide essential funding for local government projects. Meanwhile, Gary Bruebaker, former chief investment officer for the state, countered that avoiding investments in equities results in lower returns for taxpayers. He argued that while equity investments carry short-term risks, they yield better long-term returns due to a diversified portfolio.
As the debate unfolds, the political committee supporting the measure, Approve 8201, reported raising $220,476 to promote its passage, with financial backing primarily from the Service Employees International Union 775, representing long-term care workers in several states. As of now, no campaign has publicly announced opposition funding.
Information from both sides, along with an explanatory statement prepared by the attorney general, will be available on the Washington secretary of state’s website as the election approaches. Proponents of the measure remain hopeful that voters will recognize the potential for improved financial management of the long-term care program, a sentiment they believe has gained traction since its initial defeat five years ago.
