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Committee hears supporters say allowing market investing for WA Cares could strengthen fund
Summary
Senate Joint Resolution 8201 would amend the Washington Constitution to permit WA Cares long‑term services and supports funds to be invested under law and dedicate any investment income to program beneficiaries; the committee received staff and stakeholder testimony in support.
Committee staff briefed the Appropriations Committee on Senate Joint Resolution 8201, which would amend Article 29, Section 1 of the Washington Constitution to add funds held to provide long‑term services and supports (WA Cares) to the list of state trusts that may be invested “as provided by law,” and to dedicate any investment income to the program’s beneficiaries.
David Pringle described the constitutional constraints that currently restrict many public funds to fixed‑income vehicles and summarized the proposal’s effect: allowing the WA Cares fund to be invested under statutory law like pension or other exempt funds. The Secretary of State’s office estimated about $2.2 million in voter pamphlet and election costs if the amendment is placed on the 2025 general election ballot. The State Investment Board estimated ongoing staffing costs (about 0.2 FTE of a senior investment officer, roughly $880,000 per year) to manage the new fund. The State Actuary’s materials included an example showing the fund currently has a projected 3.5% actuarial balance over a 75‑year projection; a hypothetical 1 percentage‑point higher return would raise that balance substantially (the actuary’s example showed an increase toward about 10.8%).
Stakeholder testimony
Jeff Komboski of the Washington Health Care Association and industry representatives supported the amendment and said the State Investment Board has prudent experience managing public funds. Laura Sapoi, representing the state Area Agencies on Aging and a member of the Long‑Term Services and Supports Trust Commission, urged support so the WA Cares fund would have investment parity with state pension funds and could sustain or expand benefits in the future. Kathleen McCall of AARP‑Washington also testified in support, calling the change an opportunity to strengthen the trust for future beneficiaries.
Why it matters: The amendment would require voter approval. Proponents said market investing could increase long‑term fund returns and therefore program solvency or capacity, but the proposal also raises governance, cost and oversight questions—staffing and ballot costs were identified in the fiscal notes presented to the committee.
The committee concluded public testimony and moved to other agenda items without recording a committee vote on the joint resolution in the transcript.
