Washington State Voters to Decide on Constitutional Amendment for Long-Term Care Fund Investments

Washington state voters are preparing to make a significant decision that could reshape the financial future of the state's long-term care insurance program. On November 4th, voters will consider Senate Joint Resolution 8201, a proposed constitutional amendment that would allow funds from the WA Cares Fund to be invested in the stock market. This represents the only statewide contest in an election otherwise dominated by municipal races across Washington.

Understanding the WA Cares Fund

The WA Cares Fund was established by the state Legislature in 2019 to help participants cover costs associated with long-term care services. The program is funded through a 0.58% payroll tax that began in July 2023, and as of June 30th, the fund had accumulated a balance of $2.5 billion. This substantial pool of resources represents the state's commitment to addressing the growing need for long-term care services among Washington residents.

The Constitutional Debate

Washington's state constitution generally prohibits the investment of public funds in private stocks and equities. However, voters have approved several exemptions over the years for various public funds, including public pensions, retirement funds, workers' compensation funds, and developmental disability funds. These exempted funds are managed by the nonpartisan Washington State Investment Board, which would also oversee the WA Cares Fund if the current ballot measure passes.

Historical Context and Previous Voting

This marks the second time in five years that Washington voters have considered this issue. In November 2020, a similar ballot measure was rejected by approximately 54% of voters, with only 46% supporting the proposal. Historical data shows that since 1966, Washington voters have considered at least 10 proposed constitutional amendments to exempt certain funds from the ban on stock investments, with five measures ultimately passing, most recently in 2007.

Regional Voting Patterns

The 2020 vote revealed distinct regional patterns in voter sentiment. Only three of Washington's 39 counties supported the failed measure: King County (home to Seattle) and Whatcom County, where it received more than 58% support, and Jefferson County, where it garnered about 52% approval. Notably, Pierce and Snohomish counties, the state's second and third most populous counties located adjacent to King County, overwhelmingly rejected the proposal with nearly 60% opposition.

Election Mechanics and Timeline

Washington state conducts its elections almost entirely by mail, with about 5.1 million active registered voters as of October 1st. In the 2024 general election, approximately 79% of registered voters cast valid ballots, with about 66% using drop boxes and 33% mailing their ballots. The Associated Press will provide vote results and declare a winner in the statewide ballot measure, though other municipal elections occurring simultaneously will not be included in their tabulation.

The decision facing Washington voters represents a critical juncture in the state's approach to long-term care funding. The outcome will determine whether the WA Cares Fund can pursue potentially higher returns through market investments or remain constrained by constitutional limitations. With the program's $2.5 billion balance at stake, voters must weigh the potential for enhanced growth against concerns about market volatility as they cast their ballots on this significant constitutional question.