Activists urge cash-strapped Miami-Dade to ditch Israeli bonds

Driving the news: The county recently renewed a $20 million investment in Israeli government bonds, a spokesperson told Axios.

• Activists argue that money could be better used for local priorities and that disinvesting would distance the county from the humanitarian crisis in Gaza.

Catch up quick: Following the Oct. 7 Hamas terror attacks, Levine Cava announced the county would invest an additional $25 million in Israeli bonds, boosting the total investment at the time to $76 million.

• The additional investment, Levine Cava said, was meant to "send a clear message that Miami-Dade stands together with Israel and all nations that champion democracy."
• Those bonds matured April 1.

What they're saying: Jared Simon, a member of the South Florida Break the Bonds campaign, said his group's argument against the bonds is two-fold: economic and moral.

• "That the county decided to further commit tens of millions of taxpayer funds to Israel — at a time when it is unable to fully fund its own budget and Israel, according to [the UN], is killing or injuring 100 children a day in Gaza — should strike every resident of Miami-Dade as fiscally irresponsible and morally disgraceful."

The county could put the money into local government or services, or other investments with similar return rates "that are less risky and don't make us complicit in violations of human rights or international law," Simon says.

• "There's a gazillion alternatives."

Between the lines: Critics argue that such investments are becoming riskier because international ratings on Israeli bonds have changed.

• Moody's downgraded its rating in October and postponed its latest rating report.

The other side: A county spokesperson said the bonds are "considered a worthy investment, generate good returns and continue to follow a consistent conservative investment strategy."

• The spokesperson said the bonds "still maintain an A rating" with at least two services and are considered "credit worthy investments" by advisers.

Flashback: In 2007, the Florida Legislature passed a law allowing for local governments to "invest surplus public funds" in rated or unrated Israeli bonds.

• Miami-Dade followed suit in 2016, amending its investment policy to include Israel — the only foreign government in which such investments are allowed.

Follow the money: That year, the county made two such bond investments for a combined $50 million. Since then, each time a bond has matured, the county has reinvested.

• The largest single bond purchase was for $60 million in April 2020.

The county currently has five active bond purchases, including the one that was just renewed, totaling $76 million, according to county records requested by the Break the Bonds South Florida campaign and provided to Axios.

• One will mature in November; the other three will mature next year.

Zoom out: The county isn't alone in its investments. Following the Oct. 7 attacks, the city of Miami Beach doubled its investments in Israeli bonds to about $20 million.

• As of July, Palm Beach County was the world's largest investor in Israeli bonds, totaling $700 million, per the Palm Beach Post.

The South Florida campaign is part of a national effort demanding that local municipalities and governments divest from Israeli bonds.