Decision on investing WA Cares tax dollars in stock market goes to ballot

Washington voters will face a decision in November regarding a measure to allow the WA Cares Fund to invest payroll tax revenues in the stock market. The proposed amendment to the state constitution seeks to align the fund's investment strategy with that of pension and retirement accounts, potentially increasing earnings and benefits for long-term care. Currently, public funds are limited to lower-risk investments like government bonds. The legislature passed the proposal with strong support, reflecting a shift in public opinion since a similar measure was defeated in 2020. Since mid-2023, a 0.

58% payroll tax has been implemented, with benefits set to begin in July 2026. The fund, which had $1. 64 billion in assets as of late 2024, aims for a 7% return on investments. Some lawmakers, however, remain opposed, advocating for investments in municipal bonds instead. Supporters believe that increased earnings could lead to lower premiums and enhanced benefits for program participants.