Vote ‘no’ on Measure 8201: Don’t gamble with mandatory payroll deductions

This November, Washington voters will be asked to approve Senate Joint Resolution 8201, a proposed constitutional amendment that would allow the state to invest public dollars from the WA Cares Fund – money taken directly from workers’ paychecks – into the stock market.

Supporters call it a “no-brainer.” I call it a dangerous precedent.

The state constitution wisely restricts most public funds from being invested in private stocks or equities. That is because these are taxpayer dollars, not voluntary contributions. Our pension and retirement systems are the exceptions because they are voluntary investments made by employees for their own future benefit. WA Cares, however, is not voluntary. It is a mandatory payroll deduction imposed on every working Washingtonian, regardless of their age, income, or likelihood of using the program.

When government takes money out of a worker’s paycheck, the first obligation is to safeguard it, not gamble it. Allowing those mandatory deductions to be invested in a volatile market – no matter how well-intentioned – undermines that basic trust.

Supporters argue that investing in the market could yield higher returns, helping to keep the program “sustainable.” But higher returns come with higher risk. What happens when the market dips or crashes? Will the state reduce benefits? Increase payroll taxes? Or will taxpayers again be left holding the bag for another government program that overpromised and underdelivered?

This is not about whether we support long-term care. It is about how we fund it – and whether we do so responsibly. The WA Cares Fund already faces credibility issues. Many workers will pay into the system for decades and never qualify for benefits. Now, instead of fixing those inequities, the Legislature wants to roll the dice with other people’s paychecks.

Even if the Washington State Investment Board has managed respectable returns for pension funds, those are not guaranteed, and they depend on long-term stability that can swing sharply with economic downturns. The difference between a voluntary retirement plan and a compulsory payroll tax cannot be overstated. When you choose to invest in a 401(k), you assume the risk yourself. When the state does it with mandatory payroll deductions, that risk belongs to everyone.

And that is the precedent SJR 8201 sets. Once we blur the line between voluntary investment and mandatory taxation, what stops the Legislature from doing the same with other payroll-deduction programs in the future? What stops lawmakers from deciding that any public fund could be “enhanced” by exposure to the market? Today it is long-term care; tomorrow it could be unemployment insurance, paid family leave, or even the state’s general fund.

Voters already rejected a similar proposal in 2020 because they understood the risk. Nothing has changed–except the scale of what is at stake. As of this spring, nearly $2 billion has already been collected from workers. That money should remain in secure, fixed-income investments that prioritize stability over speculation and accountability over ambition.

Government must operate with a higher standard of stewardship than any private investor. Our duty is not to maximize returns – it is to protect the people’s money.

I urge voters to reject Senate Joint Resolution 8201. Washingtonians deserve responsible management of their hard-earned wages, not a government that treats mandatory payroll deductions as chips on a roulette table.

Rep. Joe Schmick, R-Colfax, represents the 9th Legislative District and serves as the ranking Republicanon the House Health Care and Wellness Committee.