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This November, Washington voters will decide whether the state can invest payroll taxes collected for its long-term care program, WA Cares Fund, in the stock market, a move aimed at increasing returns and ensuring the program’s sustainability.
The Washington State Legislature has approved a ballot measure proposing a constitutional amendment that would allow the WA Cares Fund, which now holds more than $1.64 billion in assets, to be invested in the same way as the state’s pension funds. If approved, the Long-Term Services and Supports Trust account would join a short list of public funds exempt from Washington’s constitutional ban on investing in private company stock.
Currently, the state is limited to low-risk investment vehicles like government bonds and certificates of deposit. Proponents of the amendment argue that broader investment options could yield higher returns, reduce the need for higher payroll taxes, and increase the benefits offered under WA Cares.
The measure, Senate Joint Resolution 8201 passed the Senate 42–7 and the House 86–9, securing bipartisan support. A similar proposal was put to voters in 2020 but was rejected 54.4% to 45.6%. Since then, the political landscape has shifted.
In 2020, the WA Cares program was new, payroll tax collections hadn’t started, and public skepticism was high; exacerbated by pandemic-related uncertainty in financial markets. Now, with the tax in effect since mid-2023 and benefits scheduled to become available in July 2026, the program appears more stable. Workers pay a 0.58% payroll tax and will eventually be eligible for lifetime benefits starting at $36,500, adjusted for inflation.
Senate Minority Leader John Braun (R-Centralia), a key backer of the measure both in 2020 and now, said this year’s campaign will focus more clearly on the benefits of professional fund management by the Washington State Investment Board, which already handles the state’s pension assets using a diversified long-term strategy targeting 7% returns.
Opposition remains. Sen. Bob Hasegawa (D-Seattle), who helped write the voter guide’s opposition statement in 2020, remains concerned about exposing the fund to stock market volatility. He advocates for using the funds to support municipal bonds and local infrastructure instead.
Still, a coalition of health care organizations, caregivers, and retiree advocates, including the Washington State Nurses Association, SEIU 775, and AARP Washington, have formed We Care For WA Cares to support the amendment. They argue that smart investments will bolster the fund’s long-term health, providing a more stable safety net for future beneficiaries.
As the November election approaches, both sides are gearing up for a renewed debate over how best to secure the future of long-term care funding in Washington.
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