Miami-Dade to consider increasing investments in Israeli bonds
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Miami-Dade commissioners on Tuesday will weigh whether to increase the county's investments in Israeli bonds.
Why it matters: The county is facing a nearly $100 million deficit for the 2027 fiscal year, and ahead of this year's budget season, Mayor Daniella Levine Cava proposed cutting 12 bus routes to offset financial shortfalls
- She also instructed county departments to hold spending growth to 3%.
- Opponents of the bond investments argue they're immoral and that taxpayer money could be better spent on local priorities, like housing and infrastructure.
State of play: The county already has multiple Israeli bond investments totaling $141 million, and the resolution on Tuesday's agenda comes after the county renewed two of the three bonds that were set to mature this year.
Zoom in: The proposed policy change, if approved, would allow the county to increase its investment portfolio in Israeli bonds from 3% to 5%.
- It would reduce the bonds' maturity from five years to three.
Between the lines: The proposed changes also strike out current policy language requiring that such a bond have "an A rating or above or equivalent rating by at least two accredited ratings agencies."
- In recent years, international ratings on Israeli bonds have changed, with Moody's downgrading its rating in October, but S&P affirming its higher rating in May.
Flashback: The county began investing in Israeli bonds in 2016, after it amended its policies to allow investments in Israel's government, purchasing two bonds for a combined $50 million.
- State law passed allows local governments to "invest surplus public funds" in rated or unrated Israeli bonds.
Last year, local activist groups, including members of the Break the Bonds Miami campaign, called on Miami-Dade officials to liquidate county investments in Israeli bonds instead of renewing them.
- Ahead of the commission meeting, Jewish Voice for Peace South Florida took to social media, writing, "when so many people in our community are struggling, we believe our public dollars should be invested in our communities."
The other side: A county spokesperson said the funds are not discretionary, but designated for investment under state and local law.
- As for the proposed changes, she said they reduce the county's "exposure to longer-term interest rate and market risks."
- The increased allocation "provides greater flexibility to the county's investment portfolio" and allows it to "benefit from more favorable yields," she said.
What's next: The commission meeting is at 9am.