Full Breakdown
Washington State's Ballot Measure on Long-Term Care Fund Investments
11/4/2025, 12:39:09 AM
Overview of the Proposed Amendment
On November 4, 2025, Washington state voters will decide on Senate Joint Resolution 8201, a proposed constitutional amendment that seeks to allow the investment of funds from the WA Cares Fund in the stock market. This measure comes after a similar proposal was rejected by 54% of voters in November 2020. The WA Cares Fund, established in 2019, is designed to assist participants with long-term care costs, funded through a 0.58% payroll tax initiated in July 2023. As of June 30, 2025, the fund had a balance of $2.5 billion.
Arguments For and Against the Measure
Supporters of the amendment argue that investing in the stock market could enhance the fund's long-term stability and yield higher returns, thereby keeping premiums low for participants. They contend that the current investment strategy, which relies on government bonds and certificates of deposit, limits growth potential. Conversely, opponents caution that investing taxpayer dollars in the stock market introduces risks associated with market volatility, potentially leading to reduced benefits or increased taxes if the fund's value declines.
Historical Context and Voter Sentiment
Historically, Washington voters have considered numerous amendments to exempt public funds from the constitutional ban on stock market investments, with five of ten measures passing since 1966. The 2020 ballot measure, which aimed to allow similar investments, was notably rejected in most counties, with only King, Whatcom, and Jefferson counties supporting it. King County, home to Seattle, is the state's most populous and played a significant role in the previous measure's support.
Official Statements & Responses
The Washington State Investment Board, which would manage the WA Cares Fund if the amendment passes, has not publicly endorsed or opposed the measure. However, the board's historical management of other public funds under similar exemptions may influence voter perceptions.
Criticism & Opposition
Critics of the proposed amendment have labeled it as "gambling with taxpayer dollars," emphasizing the unpredictability of stock market investments. They argue that the risks involved could jeopardize the financial security of the WA Cares Fund, which is intended to provide essential services for long-term care.
Conflicting Reports & Gaps
While the amendment's proponents highlight potential benefits, there is a lack of consensus on the implications of market volatility on public funds. Some sources suggest that the risks may outweigh the potential rewards, while others maintain that strategic investments could secure the fund's future.
What's Next
As the election date approaches, voter turnout and sentiment will be closely monitored, particularly in light of the previous rejection of a similar measure. The outcome of this ballot measure could significantly impact the future of long-term care funding in Washington state.
Verbatim Quotes
- “Advocates of the constitutional amendment argue the stock market would lead to larger returns and keep premiums low.” — Supporter of Senate Joint Resolution 8201
- “Opponents say it amounts to “gambling in the stock market” with taxpayer dollars.” — Opponent of the amendment
