Just what will this senate resolution do? If you are unaware of this proposal, you must read the 2025 Washington State Voters' Pamphlet. In the meantime, this quote from the Voters' Pamplet summarizes the purpose of Resolution 8201.

"This Amendment would allow funds in the Long-Term Services and Supports Trust Account to be invested in stocks of private companies, if authorized by law. Investment income from the Trust Account could only be used for long-term care services and supports for program beneficiaries, including for seniors and people with disabilities."

There is probably not a worse time for such shenanigans with state employee contributions as proposed in Senate Resolution 8201. 

What a great idea to put at risk the funds to be used for some of the most vulnerable of our population, "...seniors and people with disabilities." At the moment, this nation is undergoing what may ultimately prove to be the most disastrous economic situation since the Great Depression. The stock market and private investments are problematic even in the best of times. Private corporations, even the most well known and worth billions, collapse or need bailouts. Think of Tesla and Twitter, or the Chrysler Bailout of 1979, the DotCom Bubble of the 1990s, the bank crashes of 2008, and now the highly speculative claims of Artificial Intelligence and Bitcoin/CryptoCurrency. Investors, especially citizen investors, are not always rewarded for their faith in corporations. Now, our legislators in Olympia think it will be just ducky to have funds invested in private corporations who are not obliged to post quarterly reports or divulge the inner workings and processes that may have bearing on their worth. Sure thing. What could go wrong there? 

Pay attention to the argument against written by state Senator Bob Hasegawa and other senators and state representatives. 

"Proponents imply a guaranteed return of $$billions over 50 years but of course, that’s not guaranteed. In 2008 the State Investment Board lost -26.2% and 2022 lost -12.9%. It’s how the stock market works. In future recessions or market crashes, when returns fall short, benefits must be cut or tax rates must go up. Compared to guaranteed municipal bond returns of 3-5%, the choice is clear. Invest in ourselves, not Wall Street."

For years, we have worked with Sen. Hasegawa to create a Washington State Public Bank into which receipts of local and state government would be deposited. This would insure the investment of these dollars would be returned directly to the Public Bank, and not given over to private banks like Wells Fargo or USB. We have seen how stable these private banks have been, especially in 2008 as I mentioned above. The legislature has routinely rejected the creation of this public bank, which was modeled on the State Bank of North Dakota, a bank that celebrated its 100th anniversary a few years ago. The primary argument of the opponents was that a group of government appointed public bank officials was not trustworthy enough and that we should leave the investing to the real bankers like those of Wells Fargo and USB. (Note this article All the Devils from 2008 Are Back at the Megabanks: Leverage, Off-Balance-Sheet Debt, Over $192 Trillion in Derivatives, Shaky Capital Levels)  

Now the legislature wants us to believe it will be just swell for the managers of the Long-Term Services and Supports (LTSS) Trust to invest in stocks of private companies. 

VOTE NO ON 8201!