OLYMPIA — Should Washington invest its long-term care fund in the stock market?
That's the question voters will decide this November with Senate Joint Resolution 8201, a ballot measure that would amend the state constitution to allow the Washington State Investment Board to invest money from Washington’s long-term care program in high return investments like stocks and private assets.
Supporters say the measure could help grow the fund, known as the WA Cares Fund, and keep premiums low without raising taxes, while opponents argue it puts public money at risk.
The WA Cares Fund is a state-run insurance program paid into monthly by working Washingtonians for health care service they may need as they age or have health issues. Starting in 2026, eligible workers can get up to $36,500 to pay for things like in-home care, medical equipment or nursing homes. Benefits will grow over time with inflation.
Because WA Cares is a public fund, changing how it's invested requires voter approval — just like it did for state pension funds.
The proposal passed the Legislature this year with strong bipartisan support but it needs a majority of voters statewide to go into effect.
State Treasurer Mike Pellicciotti, Gov. Bob Ferguson and several health groups like the Washington State Nurses Association are backing the measure.
Pellicciotti said he supports the measure because it gives the state more investment options that could increase returns — if invested responsibly — just as it has for other state-managed funds.
He called it the logical next step for a long-term investment strategy to grow the fund.
According to models from the Washington Office of the State Actuary, the measure could increase returns by 2%, to help the fund grow by about $192 billion over 50 years.
Not all agree it's the right way to go.
Rep. Peter Abbarno, R-Chehalis, told The Seattle Times the fund shouldn't be invested in riskier markets before the program is fully up and running. It's “putting the cart before the horse,” he said, with still many uncertainties and because Washingtonians are not yet eligible to receive the benefits.
“I think creating a constitutional amendment to invest is a recognition that there potentially could be a shortfall,” he said, warning that stock market losses during a downturn could leave taxpayers on the hook for shortfalls.
Arguments in the state’s official voter guide, prepared by Abbarno and other lawmakers note that returns are not guaranteed and cites past losses in other WSIB-managed funds.
In 2020, a similar measure was shot down by voters, despite passing the Legislature with overwhelming support.
Senators John Braun, R-Centralia, Jamie Pedersen, D-Seattle, and Steve Conway, D-Tacoma, sponsored this year's resolution. The Legislature passed the measure with strong bipartisan support, though a few Republicans and Democrats opposed it.
Last year, voters also rejected a separate initiative that would have let workers opt out of WA Cares altogether. That proposal, backed by conservative group Let's go Washington, failed with 55% voting against.
© 2025 The Seattle Times. Visit www.seattletimes.com. Distributed by Tribune Content Agency, LLC.
