In an important decision for Washington voters, ballots feature a proposal that seeks to significantly alter the management of taxpayer dollars. Senate Joint Resolution 8201 aims to amend the state constitution, allowing the state to invest payroll taxes collected for its long-term care program, WA Cares, in the stock market. The initiative intends for any profits gained to be allocated strictly for the program’s beneficiaries.
If approved, this resolution would empower the Washington State Investment Board to manage WA Cares’ assets in a manner comparable to its handling of pension and retirement funds. Supporters of the measure, such as Heather Weiner from the Approve 8201 campaign, argue that this change could lead to safer and more profitable investments, ultimately generating increased funding for the program. Weiner pointed out that since 1992, Washington’s pension funds have achieved an average annual return of 8.9%, significantly outperforming government bonds. She emphasized that the initiative does not promote high-risk trading but rather focuses on long-term, strategic investing to ensure funds are available for future generations in need of long-term care.
However, not all lawmakers are in favor of the proposal. State Senator Bob Hasegawa, a Democrat from Tukwila, voiced his concerns during a recent debate, stressing the importance of fiscal prudence and constitutional protections for taxpayer money. He cautioned that economic downturns and stock market crashes are unpredictable, framing the vote as a critical moment for responsible financial governance.
The state legislature previously voted in favor of placing this constitutional amendment on the ballot, achieving significant support with an 86-9 vote in the House and a 42-7 margin in the Senate. For the measure to become law, it requires more than 50% approval from voters.
Funded by a 0.58% payroll tax imposed on most workers, WA Cares was established through legislation passed in 2019. Benefits from the program will become accessible starting July 2026, offering eligible individuals up to $36,500 for long-term care services, with an inflation adjustment planned for subsequent years. A pilot program is set to launch in January across selected counties, and as of summer, more than $2.5 billion has been accumulated in the Long-Term Services and Supports Trust Account.
Currently, the state constitution restricts public investments in private company stock, confining state and local governments to safer financial instruments like government bonds. If the amendment is adopted, the WA Cares account would be among those exempt from this restriction, potentially allowing for investments in private equity and stocks.
A similar proposal was defeated in 2020, garnering support in only a few counties, including King, Jefferson, and Whatcom. Proponents of the current amendment believe it is a more robust effort, noting that it guarantees that proceeds from investments would be directed back into the WA Cares Fund, protecting against potential legislative redirection of those funds for budgetary purposes.
Endorsements for the measure include support from Democratic Governor Bob Ferguson, Senate Minority Leader John Braun, and various organizations such as the Washington State Nurses Association and AARP. Meanwhile, the Service Employees International Union 775 has been key in financing the campaign, having raised and spent $2.5 million to support the initiative.
As the debate unfolds, opponents like Hasegawa argue that, similar to the previous ballot fight, there is no funded campaign against the measure. He, along with fellow Republican lawmakers, has contributed to the voters’ pamphlet statement opposing the amendment. Voter information and statements from both supporters and opponents can be accessed via the state secretary’s website, paving the way for informed decisions ahead of the vote.
