SJR 8201 would amend the state constitution to allow money in the long-term services and supports (LTSS) trust account to be invested as authorized by law. Effectively, the amendment would allow the funds to be invested in a broader range of vehicles, including stocks. Currently, the funds may only be invested in fixed-income securities. Over the long-run, investments of other state funds in stocks have yielded higher returns than fixed-income investments.

Although SJR 8201 would allow LTSS funds to be invested in stocks, the actual mix of investments would be determined by the Washington State Investment Board (WSIB). Washington already trusts the WSIB to invest other, similar public funds in stocks.

The LTSS program funds are long-term reserves for obligations that will occur far in the future. Thus, allowing the WSIB the flexibility to invest LTSS funds in a way that will maximize their value over time would be a responsible approach. Further, it could mean savings for taxpayers: as investment returns increase, the premiums required to maintain program solvency decrease.

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