Seattle Times endorses constitutional amendment to lift limits on UW, WSU investments

By Evan Smith

Our news partner, the Seattle Times, has endorsed a proposed constitutional amendment on the Nov. 7 ballot that would lift limits on investments by the University of Washington and Washington State University.

Senate Joint Resolution 8223 would lift restrictions on the UW's and WSU's ability to invest certain public funds in private companies or stock.

The Times called it “a smart idea whose time has come.”

The Times said in late August that the amendment “could create more revenue” for the two research universities by; lifting ”age-old investment restrictions on the schools, allowing them more flexibility and diversity in investing. The goal is more revenue without turning to taxpayers.

“The UW and WSU have done well investing their endowment and private funds. But they have been restricted in how they invest certain other university assets. 

“Funds targeted for investment should not be confused with state general funds or tuition money, neither of which would fall under SJR 8223's investment change. 

“Rather, the money intended for investment are local university funds from the schools' research grants, patient and medical revenues and fees from parking, housing and food services. Construction funds, insurance reserves and earnings from merchandising agreements are also included. 

“Of the money SJR 8223 seeks to make eligible for investment, the schools would turn over about 10 percent to the Washington State Investment Board for investing in bonds, securities and stocks.”