Debate on investing WA Cares funds in the stock market heats up

Washington's Senate Joint Resolution 8201, on the November ballot, seeks to amend the state constitution to permit investing WA Cares Fund payroll taxes in the stock market. Proponents, including Greg Markley of the Washington State Council of Fire Fighters, argue that this will enhance returns and maintain low premiums for the long-term care program. Opponents, including Senator Bob Hasegawa, criticize the measure as a risky gamble with taxpayer money. Currently, public funds are limited to lower-yielding securities, while pension accounts are exempt from these restrictions. A similar proposal was rejected by voters in 2020, but advocates believe increased public awareness could lead to different results this time.

Since July 2023, the WA Cares program has collected $2 billion, with benefits set to begin in July 2026. Advocates emphasize the potential for higher returns, citing the Washington State Investment Board's recent performance. The debate highlights a longstanding tension between risk and return in state investment strategies.