We endorse: Amend Constitution to secure long-term care nest egg for Washingtonians
On the surface, it might seem risky to let the state play the stock market with payroll tax revenue collected from every Washington worker. But it’s already being done to secure state obligations such as public employee pensions and workers compensation funds.
Now voters are being asked to approve Engrossed Senate Joint Resolution 8212. What’s at stake? Potentially up to $6 billion in accrued interest earnings needed to keep Washington’s new long-term care trust account from going broke.
We urge a “yes” vote on ESJR 8212, which passed this year’s Legislature with resounding bipartisan support (a total of only four “nay” votes compared to 141 yays). Voters have the final say since it involves amending the state Constitution.
Allowing investment flexibility for the state’s new long-term care benefit, designed to help families cover costs ranging from in-home caregivers to wheelchair ramps, is not just sensible; it’s necessary for the benefit to survive.
Make no mistake, the program was controversial when adopted by the 2019 Legislature, funded by a compulsory 0.58-percent premium on wages. Sen. John Braun of Centralia, lead budget writer for the minority Republicans, described it as a “robust debate” with many in his caucus opposed.
But this year Braun credited Democrats for reaching across the aisle, seeking ideas on how to fortify the program for decades to come. The result: a plan to turn funds over to the Washington State Investment Board, which recently boasted a 7.5 percent rate of return. With no access to the stock market, however, the trust account would stagnate at a much lower rate.
If ESJR 8212 fails, “it will almost guarantee that we won’t be able to honor the benefit,” said Sen. Mark Mullet, D-Issaquah, before the Senate passed it in February.
Eighteen months ago, we encouraged creation of the trust account, saying: “It could provide relief for older Washingtonians seeking a modest sum for long-term care in their twilight years; for sandwich-generation family members trying to make sound decisions for elderly parents; and for taxpayers to the tune of an estimated $470 million in state Medicaid savings by 2052.”
It would be irresponsible not to encourage prudent stewardship of those funds now.
ABOUT OUR ENDORSEMENTS
The News Tribune Editorial Board interviewed candidates and did other research before making our picks for the 2020 election. Endorsements are intended to promote civic discourse and encourage voters to dig deeper. Board members include: Stephanie Pedersen, TNT president and publisher; Matt Misterek, editorial page editor; Karen Irwin, editorial writer; Matt Driscoll, local news columnist; Pamela Transue, community representative and former president of Tacoma Community College; and Jim Walton, community representative and former Tacoma city manager. Read more about the candidates in our online Voter Guide.
This story was originally published October 22, 2020 at 1:40 PM.