Parties still divided after Legislature’s WA Cares delay passage
(The Center Square) – Now that a bill delaying WA Cares for 18 months sits on Gov. Jay Inslee’s desk awaiting his signature in the next day or two, reactions to the legislation pausing implementation of the long-term care program and the payroll tax that pays for it are starting to roll in.
The Democratic majority that dominates both chambers of the legislature lived up to expectations to fast track House Bill 1732, which passed the House last week and the Senate Wednesday afternoon.
HB 1732 would delay collection of the payroll tax until July 1, 2023 and refund any premiums collected before that date. Because the bill has an emergency clause, it would take effect immediately.
Democratic Senate Majority Leader Andy Billig, per the Associated Press, said the underlying law is an important program that’s “going to help Washingtonians age in place, which we know is important for the quality of their life.”
“But with such an important and impactful program and especially one that is so innovative, it makes sense to take the time to get it exactly right,” he said. “We’ve been listening. And what we’ve heard are a lot of good ideas on how to make this program better.”
Getting it exactly right has been a challenge for lawmakers dealing with a program dogged by problems, including a lawsuit by Washington workers who live out of state and have no plans to retire in Washington, a one-time opt-out characterized by critics as narrow, and a website that crashed from being swamped by people seeking exemptions from the mandatory program.
Collection of the long-term care tax was originally set to begin in January, but last month Gov. Jay Inslee announced a delay in collections after lawmakers urged a pause to address solvency concerns and other issues raised about the first-in-the-nation program.
Inslee then released a follow-up statement saying he does not have the authority to pause the tax and that employers are still legally obligated to pay the full amount owed to the state.
House Minority Leader J.T. Wilcox indicated WA Cares is beyond saving and should be scrapped in the future, pointing to the possibility of Republican gains in the legislature this fall.
“This delay recognizes the critical flaws in the bill and provides an opportunity for a different and wiser Legislature to repeal or replace it with a voluntary option in 2023,” he told The Center Square in an email. “I’m confident that voters will recognize the historic opportunity this year.”
Elizabeth Hovde, director of the Center for Worker Rights and Health Care at the Washington Policy Center, indicated the legislature is kicking the can down the road.
“Repeal was the right way to go – not delay,” she said via email. “This law and its regressive tax will still be bad in 18 months. It requires Washington workers to fund a program they may never need or want, it limits choices and, in some cases, it takes money away from people with low incomes to fund the long-term care of people who aren’t in need.”
She concluded by noting, “The WA Cares Fund is unpopular, insolvent and inadequate. It offers Washingtonians false security. A short delay won’t change that.”
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