The Summit County Fiscal Office has no intent at this time to reinvest in Israel Bonds that expire this summer, the deputy fiscal officer said.
Calls for Summit County to cease investments in any foreign bonds began in response to the Israel-Hamas war. Pro-Palestinian protesters believe the purchase of Israel Bonds supports the way Israel treats Palestinians.
The fiscal office chose not to reinvest $1 million in Israel Bonds that matured in February. The decision was mainly based on the market, Deputy Fiscal Officer Mike Migden said. Both Moody’s Ratings and S&P Global Ratings downgraded Israel Bonds last year. Moody's specifically cited the war, and S&P cited the risk of military escalation with Iran.
"We're considering all factors," he said, "but the bonds being downgraded did play a part in our decision making to not reinvest."
Calls by pro-Palestinian protesters to cease all foreign investments were also a factor, he said.
“We do consider their position, absolutely," Migden said. "We weigh all factors."
The county last invested in Israel Bonds in February of last year, despite Meeder Investment Management, an investment firm working with the county, not recommending investment due to a potential credit downgrade, according to emails requested by Ideastream Public Media. At the time, Migden said that it was a good investment, but Moody's downgrade came just two weeks later.
The county holds investments in two more Israel Bonds that expire in August and next February, Migden said. Even if the bonds are upgraded, the county still might not reinvest, he said.
“We’re not going to say that we definitely will. Honestly, it’s kind of just reviewing everything at that time," Migden said, "but it’s not a definite that we would if it’s upgraded.”
Cuyahoga County also froze its Israel Bond renewals last month amid the county’s own financial uncertainty.
Ohio Attorney General Dave Yost has previously warned that counties are barred from boycotting Israel, which caused Cuyahoga County Council to withdraw a resolution to cease investments in Israel Bonds last summer.
“We’re really factoring it, making our determination based on a market condition," Migden said, "so I believe our decision making is in compliance with the Ohio Revised Code, as we’re basing it off of current economic environment conditions.”
A spokesperson for the attorney general's office said they are unfamiliar with the details and are looking into it.
