Voters to again decide whether to invest WA Cares funds in the stock market

Washington voters bucked an attempt last year to let folks opt out of the state’s new program providing long-term care benefits to residents.

This year, they’ll weigh in again on the WA Cares program on the November ballot. This time, they’ll decide if the state should be able to invest payroll taxes raised for the program into the stock market like the state does for state pensions.

Supporters say the move would bulk up the program without having to raise additional taxes since the stock market generally rises faster than other investments.

Opponents note that voters rejected an earlier request and say investing money in stocks could be risky. Some also say they don’t want to boost a program they opposed in the first place.

Established by the Legislature in 2019, the long-term care program, also known as WA Cares, is funded through employee deductions from paychecks and provides a lifetime benefit of $36,500 per Washington resident. The amount residents will receive will rise with inflation.

Last year 55% of Washington voters rejected an attempt to allow Washington workers to opt out of WA Cares, a move that could have dealt a significant financial blow to the program.

The money can be used for home modifications, home care aid, or other long-term needs that while not medical care, can disrupt daily activities.

To fund it, the state has collected $0.58 per $100 of every paycheck since 2022. However, current law only allows the Washington State Investment Board to invest the funds collected in lower-return options, such as government bonds and savings certificates. A projection from 2020 suggested  the collection rate and investments was insufficient to keep the program solvent for the next 75 years. But a report commissioned by the Washington Office of the State Actuary that was released in 2024 found the “fund ratio is estimated to exceed 100% for the next 75 years under most scenarios,” including with or without the change from voters.

If this potential financial shortfall sounds familiar, there’s a reason: This year’s ballot request is five years after Washington voters rejected a similar proposal.

During the 2020 election, 54.3% of voters opposed a measure that would have allowed long-term care funds to be invested in stocks. The measure only received majority support in three counties, Jefferson, King, and Whatcom, all of which are in Western Washington.

Voters will again be asked to amend the state constitution to allow the money in the fund to be invested in the stock of private companies through Senate Joint Resolution 8201.

Washington lawmakers signed off on the second try earlier this year with both legislative chambers voting earlier this year to send a measure to amend the state’s constitution to the November ballot. The state Senate voted 42 to 7 in favor of the idea, while the state House voted 86 to 9, votes that sent the proposal to the voters, who will make the ultimate decision.

Ahead of the election, the proposal has drawn a broad bipartisan coalition of support, including Senate Minority Leader John Braun, R-Centralia, and Gov. Bob Ferguson. Writing in support of the proposal in the state voter’s guide, a collection of supporters, including Ferguson and Braun, call the idea a “commonsense measure” that could grow the fund by an estimated $67 billion over the next 50 years, which they say is “money that can be used to increase benefits for people with disabilities and seniors without costing taxpayers a penny.”

“Higher earnings mean more money for care – good for seniors, disabled Washingtonians, their families, and taxpayers!” supporters wrote in arguments that appear in the state’s voter guide.

The measure is also endorsed by the Washington State Nurses Association, the Washington State Council of Fire Fighters, the National MS Society, among other groups.

Greg Markley, secretary-treasurer of the Washington State Council of Fire Fighters, said during a news conference last week that the initiative “seems like a no -brainer.”

“Measure 8201 would enable the WA State Investment Board to grow our long-term care fund the same way we grow funds for fire fighters, teachers, and more than dozen other state funds,” Markley said.

Markley also chairs the Washington State Investment Board, though he said he was “not speaking for the board.”

But while the idea is backed by the top Republican in the state Senate and the Democratic Governor, it also has bipartisan opposition that argues the proposal amounts to “financial roulette.”

“Washingtonians are not yet eligible to access program benefits but proponents are again asking you to remove a key Constitutional protection,” four state lawmakers, including state Sens. Mark Schoesler, R-Ritzville, Bob Hasegawa, D-Seattle, and State Rep. Joe Schmick, R-Colfax, wrote in opposition in the voter’s guide.

Voters, the lawmakers noted, “already rejected this proposal to take taxpayer money and invest in private stocks and corporations.”

“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,” the legislators wrote.

In an interview, Schoesler said the measure would be “putting lipstick on a pig.”

“All this will do is perhaps postpone the inevitable rate increases. Because to be honest with you, a $36,000 policy doesn’t take you very far in long-term care,” Schoesler said. “I just think, why are we trying to dress up this ugly plan that’s not going to work?”

Schoesler added that he voted against creating the program and supported an unsuccessful statewide initiative last year that would have allowed residents to opt out of WA Cares. Schoesler said he continues to support making the program voluntary and allowing residents the option to choose private long-term care programs.

“I see no reason to try and bail this plan out when I think it’s doomed for failure,” Schoesler said.

Ballots will begin to arrive on Oct. 16.

This report was changed on Sept. 15, 2025 to include information commissioned by the Washington Office of the State Actuary that released in 2024 that found the “fund ratio is estimated to exceed 100% for the next 75 years under most scenarios,” including with or without the change from voters.