A year after voters rejected making the state’s long-term care program optional, they backed an amendment that supporters say will better fund it.
Initial election results released Tuesday show Senate Joint Resolution 8201 is passing with 56.8% of the vote. In Spokane County, the proposal found slightly less support at 52.9%.
The vote means the program’s funds will be allowed to be invested in private company stocks.
During the 2020 election, 54.3% of voters opposed a similar measure that would have allowed long-term care funds to be invested in stocks. Washington lawmakers signed off on the second try earlier this year, with both legislative chambers voting to send a measure to amend the state’s constitution to the November ballot.
This year’s proposal drew 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, called 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.”
The measure also was endorsed by the Washington State Nurses Association, the Washington State Council of Fire Fighters, the National MS Society, among other groups.
The Legislature established the long-term care program, also known as WA Cares, in 2019. Funded through employee deductions from paychecks, the program offers a lifetime benefit of $36,500 to each Washington resident. The benefit amount will increase with inflation.
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.
Ahead of the election, opponents noted the previous failed attempt and said investing money in stocks could be risky. Some also say they don’t want to boost a program they opposed in the first place.
In an interview ahead of the election, state Sen. Mark Schoesler, R-Ritzville, 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?”
Last year, 55% of voters rejected an attempt to allow workers to opt out of WA Cares, which could have dealt a significant financial blow to the program.
