Ronayne reaffirms support for Israel Bonds amid protests
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Pro-Palestinian protesters at Case Western Reserve University. File photo: Sam Allard/Axios
Cuyahoga County Executive Chris Ronayne reaffirmed his position that the county will not divest from Israel Bonds, the New York-based development corporation that sells bonds to underwrite the Israeli government and military.
Why it matters: The county's $16 million invested in those bonds became a hot topic in 2024, as local pro-Palestinian activists rallied and organized against U.S. financial support of Israel in its war with Hamas.
Flashback: Protesters disrupted the State of the County address in September to highlight the issue and later protested outside Ronayne's home in Cleveland's Edgewater neighborhood.
- "We are not moving away from Israel Bonds," Ronayne said during that speech. "And to the why, we can continue to talk."
The latest: He elaborated in an interview with Axios last week, saying that divesting from Israel — and the boycott, divestment, sanctions (BDS) movement writ large — is "not the right way to go."
- "It puts the county in a position to take a side in a matter that's very complicated," he said, "and puts us in a position to make investment policy based on foreign policy, which isn't our place as a county."
Zoom out: The county's portfolio of investments is managed by outside financial advisers. A county spokesperson noted this fall there is no secondary market for Israel Bonds. It means that the county can't resell those bonds. A bond transfer has to be approved by Israel Bonds itself.
- "From a fiduciary responsibility mentality, to divest would literally cost taxpayers money," Ronayne told Axios.
Between the lines: That's true for the current investments, which will be repaid (like loans) with interest once the bonds mature.
Yes, but: Activists supported a resolution this summer that would have halted future investments in Israel Bonds and all other foreign securities.
- Cuyahoga County Council introduced the resolution in June but withdrew it a week later.
Catch up quick: In 2016, Ohio passed legislation prohibiting state agencies from boycotting Israel or entering into contracts with companies with anti-Israel policies.
- Ohio Attorney General Dave Yost told Ronayne that if the county passed the resolution, it could be in violation of state law.
By the numbers: Ohio has long been one of the largest holders of Israel Bonds in the United States. As of May 1, the state treasury held more than $260 million.
The bottom line: Ronayne said he would always respect citizens' First Amendment right to protest peacefully, even outside his home.
- "I think the quicker we can find common ground, the better off we'll all be," he said.