State treasurer candidates clash over proposed ‘baby bonds’ plan to close Washington wealth gap

Twelve years after his first candidacy, a West Coast accountant is launching a new effort to unseat a sitting state treasurer.

Republican Sharon Hanek was the underdog in the race for treasurer, winning 42% of the statewide vote in the Aug. 6 primary. Democratic Treasurer Mike Pellicciotti won 58% of the vote. Both agree that financial education should be mandatory in the state, but they disagree on proposed legislation aimed at addressing the state’s widening wealth gap.

Hanek, 68, has spent his entire career working as a certified public accountant. A longtime Washington resident, Hanek said he is running for treasurer because he wants to use his 40 years of experience in financial accounting systems to fix the mess he sees in the executive office and give back to his community.

“The one thing that separates me, not only from the current treasurer but from past treasurers, is my strength and understanding of financial accounting systems,” Hanek told The Spokesman-Review in a telephone interview. “Again and again, we see mismanagement of funds. Much of it is due to what is called a lack of adequate internal accounting controls.”

Hanek specifically pointed to improper government documentation billions of dollars worth of COVID-19 pandemic relief spendingHe vowed to take a look at who is responsible for government institutions, especially certain institutions.

What was revealed in the latest inspections.

Pellicciotti, 46, was elected to his position in 2020 after serving two terms as a state representative. The Democrat said investment returns for local governments in the state are 50 times greater than when he took office in 2021. Pellicciotti said he is running for another term to continue his work on financial education and stability for state residents.

He pointed to his experience.

“There’s no greater experience than being the state treasurer,” Pellicciotti said in an interview. “As someone who has always rejected corporate campaign contributions, it has allowed me to put forward policies that put people’s financial interests ahead of corporate interests.”

While running the treasurer’s office for the past four years, Pellicciotti said he was proud that the state had earned a “AAA” credit rating from Moody’s at the time. He also said his office’s refinancing of existing bonds to redirect more than half a billion dollars back to the state that would otherwise have gone to Wall Street was something that would help state residents “for years to come.”

Last year, Pellicciotti introduced a bill to state legislatures called the Washington Future Fund. creating trust funds for low-income babies born in the stateThe proposed legislation, nicknamed “baby bonds,” would set aside money for about 40,000 children born each year under the state’s Medicaid program, Apple Health.

That number accounts for nearly half of the babies born in Washington each year.

Pellicciotti’s baby bond bill is modeled after Connecticut and Washington, D.C., which recently passed their own baby bond bills to address centuries of racial and economic inequality in the United States. Children who qualify for baby bonds would be given access to a trust fund from age 18 to age 35 that could be used to buy a home, start a small business or pursue higher education.

The Washington Future Fund failed to pass the state legislature this year, but Pellicciotti said pushing for it to become law is at the top of his to-do list if he is re-elected.

“I care deeply about creating economic opportunity and economic empowerment for our state,” Pellicciotti said, adding that he wants to introduce legislation that would mandate financial education in all high schools in Washington, along with the baby bonds.

Hanek criticized the proposed baby bond law, saying he thought there were some good programs out there but that the idea of ​​baby bonds removed the requirement that people have “individual responsibility.”

“Sometimes, when you start just giving money, like baby bonds, I get a little worried that it just becomes a gift,” Hanek said. “I want to see things given because you have a purpose, not just because you were born.”

Hanek said he agreed with Pellicciotti’s suggestion that financial education be taught in schools, but he would push to expand the program to young adults up to age 25.

In its current form, the proposed baby bonds bill would require the state to set aside $4,000 for every child born into Medicaid, for access between the ages of 18 and 35.

Hanek argued that the baby bond program would be unfair to babies who were not born on Medicaid but still need help later in life. He said the concept of the plan is good but he wants a different system to determine who qualifies for state aid.

More than 40% of Washingtonians today have no way to save money, open a savings account or buy stocks, making it often impossible to overcome financial hurdles, such as college or technical school, to start earning money, Pellicciotti argued.

Before entering politics, Pellicciotti worked as an assistant state attorney general, assistant prosecutor and state Supreme Court Clerk. He also received a Fulbright Scholarship for economic development. He earned a bachelor’s degree in business administration and a law degree from Gonzaga University. The treasurer currently serves in a five-member state committee dedicated to helping state residents save for college and other educational expenses.

Hanek was elected to the Pierce County Charter Review Commission in 2016. Four years earlier, he filed a candidacy for county treasurer that earned him enough votes to qualify for the general election, but was defeated by then-Democratic incumbent Jim McIntire. Hanek earned his Certified Public Accountant’s license in 1980. He holds a bachelor’s degree in business administration and accounting from the University of Washington.

The treasurer of Washington state serves a four-year term and manages the state’s investments, checkbook and debts.

The general election day is November 5, and Washington ballots will be mailed in mid-October. Voters must mail their ballots postmarked on or before November 5 or drop them off in official county-designated drop boxes no later than 8 p.m. on Election Day.