Resolution 8201: Should the WA Cares Fund play the stock market?

Some may compare playing the stock market to gambling, but we just thought this was funny. (Art by Valerie Osier)

How should Washington state invest funds for long-term care for an aging population? That’s the question behind Senate Joint Resolution (SJR) 8201, which is on your ballot this year. Here’s how it looks:

The legislature has proposed a constitutional amendment on allowing money in Washington’s long-term care fund to be invested. This amendment would allow the state fund dedicated to providing long term care benefits for eligible seniors and people with disabilities to be invested as authorized by law. Should this constitutional amendment be:

Approved or Disapproved

Constitutional amendments become law if more than 50% of voters approve, which is a simple majority.

What it does

The resolution is a proposed amendment to the Washington State Constitution that would allow the Washington State Investment Board to invest the long-term care fund (WA Cares Fund) in a wider mix of financial assets like the stock market. The WA Cares Fund is a public long-term care insurance program.

All working Washingtonians contribute a mandatory deduction of 0.58% from each paycheck that goes into the fund. When working residents need care, they can access an earned benefit of $36,500 to pay for services. It requires voter approval to become law and is the only statewide measure on the ballot. If it passes, investment earnings must remain exclusively dedicated to long-term care benefits and program costs for elderly and disabled Washingtonians. The resolution does not make changes to WA Cares eligibility, premiums, or benefits.

What it costs

Unlike the other propositions and measures you see on your ballot, this proposal doesn’t add to your tax bill. A yes vote instead means that you’re fine with the state investing the Long-Term Care Trust Fund on the stock market.

Those in favor:

Right now, the fund can only be invested in government bonds and certificates of deposit, which give much lower and slower rates of return, but are generally much safer and controlled. Advocates for SJR-8201 say the change will allow the fund to grow faster, keeping benefits on track and relieving pressure on premiums.

“8201 requires 100% of investment income earned by the state’s Long-Term Care Trust Fund to be spent on long-term care services for vulnerable seniors and disabled people,” reads the argument for the resolution in the 2025 General Election Voters' Guide.

“Washingtonians want to live with dignity as they age. 8201 supports this shared goal, strengthening the benefit’s Trust Fund to help seniors and disabled Washingtonians while protecting taxpayers.”

The supporting argument goes on to say that the current law restricts investments for the long-term care fund with low-return choices like savings certificates or government bonds. If approved, supporters say SJR-8201 would allow investments for the fund that would produce higher returns.

“8201 is projected to grow the Trust Fund by $67 billion over the next 50 years,” the approval argument says.

Supporters for SJR-8201 include Spokane County Treasurer Mike Volz and State Senator of Legislative District 4 Leonard Christian. For a complete list of supporters, click here.

Those opposed:

Those who oppose the resolution say diversified portfolios need more oversight beyond what WSIB already does for existing funds. Stock market investments can also decrease in value over the years and outcomes are not guaranteed.

“Washington voters already rejected this proposal to take taxpayer money and invest in private stocks and corporations (2020, SJR 8212),” reads the argument against R-8201 in the voters’ pamphlet.

“Our state founders protected public funds from risky investments by establishing safeguards in our state Constitution prohibiting corporate stock market investments of your tax dollars.

“Currently, it’s safeguarded in secure investments like federal, state and municipal bonds, which support our communities,” the argument says. “Stock markets and private investments fluctuate greatly with no guarantees and the benefit needs are unknown in this untested program.”

Opponents include Peter Abbarno, State Representative, Republican, 20th District; Bob Hasegawa, State Senator, Democrat, 11th District; Joe Schmick, State Representative, Republican, 9th District; and Mark Schoesler, State Senator, Republican, 9th District.