Another Ballot Measure – A Change to the Constitution
by Ruth Peterson
October 5, 2020 – Any time we propose to change the Constitution, we should do so with a great deal of caution. However, this particular change is a good idea. The Constitution prohibits the state from having equity investments. The concern is real that government money would be used to specifically provide financial support for specific businesses and perhaps even manipulate them.
But since the time when our Constitution was written, there have been a few situations where the funds that the state held were allowed to be invested in stocks and bonds. These investments are not overseen by the Legislature, but by a board. This is not a matter of the Legislature playing the stock market – the investments will be held in a portfolio, much like your 401(k), pension, or retirement funds are invested. We already do this with state funds that are held for state public pensions. You can find more about how this works at this link – https://www.sib.wa.gov/wsib_story.pdf. As the material at this link points out, the return is much greater than what we can get if the Treasurer holds the funds. The Treasurer’s average is 2.0% and the investment board returns are much higher.
