Should WA Cares funds be invested in the stock market? Ferguson says yes

Governor Bob Ferguson and Senate Republican Leader John Braun back a constitutional amendment that would allow the WA Cares Fund to invest in the stock market, potentially increasing funding for long-term care. They assert this measure will maximize the benefits without increasing taxes, as any earnings would be reinvested into the program. In opposition, four lawmakers, including Senator Bob Hasegawa, warn that investing in an unstable market could jeopardize funds currently safeguarded in stable investments like bonds. The WA Cares Fund, which started collecting a 0. 58% tax on wages in July 2023, has amassed $2 billion to support its beneficiaries.

The proposed amendment, Senate Joint Resolution 8201, passed with significant margins in both legislative chambers and will appear on the November 4 ballot. Supporters believe the current political environment is more favorable compared to 2020, when a similar proposal was rejected. They emphasize improved communication regarding potential higher earnings from the Washington State Investment Board. The opposition counters that public officials must exercise greater caution when investing public funds.