Voters to decide whether state can invest WA Cares funds in stock market
Nurses, firefighters and home care aides rallied Oct. 9 in Seattle to urge voters to approve Amendment 8201 this November — the only statewide measure on the upcoming ballot.
Washingtonians will decide whether the state should be allowed to make stock market investments with taxes collected for WA Cares, the state’s new long-term care program.
The measure, Senate Joint Resolution 8201, has broad bipartisan support in the state Legislature, which proposed the constitutional amendment.
Backers are calling the move a “financial no-brainer,” but detractors have likened it to using taxpayer dollars to gamble in an unstable market.
The state Constitution generally bars the investment of public money in private companies’ stock. So, state dollars are generally restricted to investments in less-risky, fixed-income securities such as certificates of deposit and government bonds, which also yield lower return rates.
There are certain exemptions to that restriction, including the state’s retirement and pension funds.
If voters approve the amendment this November, then dollars in the Long-Term Services and Supports Trust Account would also be exempt and could be invested in the stock market.
SJR 8201 was approved this year by state lawmakers by votes of 42-7 in the Senate and 86-9 in the House. Gov. Bob Ferguson, a Democrat, and Senate Minority Leader John Braun, a Republican, have locked arms to endorse the measure.
Advocates say the idea is supported by more than 100 organizations and elected leaders. They say that it will grow the state’s long-term care fund for seniors and people with disabilities by billions of dollars, ensuring the program can provide the coverage that it promises.
Amendment 8201 won’t cost taxpayers and will help keep premiums low, the pro-campaign’s argument goes. And the state won’t be able to use the funds for any other purpose or program.
Melissah Watts, a caregiver in the Seattle area, said Thursday that she takes care of her adult son, who is disabled. Her aging mom may also need assistance someday. In Watts’ view, growing the long-term care fund is crucial as Congress recently made deep cuts to Medicaid, the federal program offering health coverage to millions of low-income Americans.
Approving the amendment will ensure that Washingtonians have a safety net when they or a loved one need assistance with day-to-day activities due to age, disease, injury or disability, she said.
“Funds to pay for a home care aide, home modifications, medical and mobility equipment, help with meals, transportation and medication will be a game changer for people like me and my children,” Watts said.
Arguments for SJR 8201
The voters’ pamphlet features a “for” argument prepared by Ferguson, Braun, and officials from the Washington State Nurses Association, Washington Health Care Association, the Washington Association of Area Agencies on Aging and more.
They pointed out that the proposal requires 100% of investment income made by the fund to be used for long-term services benefiting seniors and people with disabilities.
Proponents also have argued that the measure would save taxpayers in the long run by growing the fund, helping to keep premiums low.
“Washingtonians want to live with dignity as they age,” the pro-argument in the voters’ pamphlet states. “8201 supports this shared goal, strengthening the benefit’s Trust Fund to help seniors and disabled Washingtonians while protecting taxpayers.”
The “commonsense” measure, they added, is expected to grow the fund by at least $67 billion over the next five decades. The proposal would let the trust fund be invested to generate greater returns — a method managed by the Washington State Investment Board, which is independent and nonpartisan and adheres to the highest fiduciary standards, the pro-argument goes.
Greg Markley, secretary-treasurer of the Washington State Council of Fire Fighters, spoke in support of the measure in a September press call. Markley chairs the state’s investment board as well but was not speaking on its behalf.
“It seems to me the point of this initiative, and to allow the state investment board to manage these funds, seems like a no-brainer,” he said.
Arguments against SJR 8201
A few lawmakers have banded together to urge voters to reject the measure. In the voters’ pamphlet, dissent was voiced by Democratic state Sen. Bob Hasegawa, as well as three Republicans: state Sen. Mark Schoesler and state Reps. Peter Abbarno and Joe Schmick.
Opponents say that the proposal would upend protections for the multi-billion-dollar Long-Term Services and Support fund established in 2020. The money is protected in state, federal and municipal bonds — secured investments — making for a wiser use of taxpayer money, they wrote.
The fund is there to ensure Washington residents who are aging or facing disability can access long-term care, they argue. But beneficiaries and taxpayers would “pay the price” via higher taxes or slashed benefits whenever market speculation comes up short.
The “against” party points out that voters already rejected a similar proposal in 2020.
“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,” they wrote. “Reject constitutional changes that gamble your money in an unstable market.”
This story was originally published October 12, 2025 at 5:00 AM.
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