Summit County did not reinvest $2 million in Israel Bonds that matured earlier this month, according to the fiscal office.
The decision comes after pro-Palestinian activists began calling for the county to cease investments in all foreign bonds in response to the Israel-Hamas War. Activists say holding Israel Bonds is implicit support for the way Israel treats Palestinians.
The decision not to reinvest was based on credit rating agencies downgrading Israel Bonds, Summit County Deputy Fiscal Officer Mike Migden said.
"The three credit rating agencies, Moody's [Ratings], Standard and Poor's and Fitch [Ratings], all have the bonds downgraded currently with a negative economic outlook," he said.
Last month, Moody’s Ratings said Israel’s direct military conflict with Iran would further strain public finances. In May, S&P cautioned that prolonged or intensified conflict could hurt economic and fiscal performance.
“Moody’s has downgraded it to a level where it’s not even an eligible purchase," Migden said, "and by code, if another of the credit agencies — if Standard and Poor’s or Fitch was to downgrade again — it’s not even permissible by law to do so.”
The county considered these ratings, not calls from pro-Palestinian activists to cease investments in foreign bonds, Migden said.
“Our decision on this is based on where we are at from an investment standpoint," he said.
The county also chose not to reinvest $1 million in Israel Bonds that matured earlier this year.
The Israel-Hamas War is tanking Israel's economy, said Matthew Charlebois with Akron Palestine Solidarity Collective, who added that it makes this decision political regardless.
"Whether it's like an economic question about whether they didn't reinvest or a moral or political question, they're all very much connected," he said.
Several counties are moving in the right direction on this issue, Charlebois said.
“It definitely feels like the tide is definitely turning against Israel Bonds," he said.
Summit County still holds $1.5 million in bonds that mature in February, Migden said.
"We'll see where we're at with rating agencies at that time," he said. "I can't say what will occur come closer to Feb. 1, but they've been downgraded for quite some time right now."
Cuyahoga County also froze its Israel Bonds earlier this year amid the county’s own financial uncertainty.
However, Ohio has not budged on its position on Israel Bonds. The Ohio Treasury alone holds $262.5 million in Israel Bonds, making Ohio one of the largest government investors in them, according to a press release from the Ohio Treasurer's Office.
"That's probably going to have to be the next big arena of contesting public funding," Charlebois said.
