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MANSFIELD –Ohio law allows county governments to invest in foreign bonds. In 2019, the Richland County Treasurer and Commissioner Board began investing in Israel Bonds at the request of local clergy. Recently the Board of Commissioners were encouraged to reinvest in Israel Bonds. According to several faith-based Israel advocates, ‘money talks.’
“Israel has never missed interest or principal payments on Israel Bonds since its inception in 1951,” says Benjamin Mutti. “After the Hamas-Israel War broke out on October 7th, more than fifteen Ohio state and municipal governments and institutions have invested in Israel Bonds in a meaningful show of support for the Jewish State. While Richland County benefits from conservative fiscal policies managed by the Board, it is my belief the county also benefits from moral clarity displayed by its elected leaders. With that said, in this current conflict, Israel carries the moral high ground and also shares our values.”
Purchases of Israel bonds do not go unnoticed. Mutti discussed with the Commissioner Board a correspondence sent by Israeli Prime Minister Benjamin Netanyahu to Richland County clergy leaders thanking them for being bond holders and for the County’s purchases which totaled at the time $1.25M.
Along with Mutti, several local residents with extensive involvement in Israel attended the Board of Commissioners’ meeting. Tom Culp is a retired farmer and ODOT Traffic Engineer who lives outside Lexington. Culp and his late wife have been to Israel several times including extended periods of assisting Jewish farmers with the grape harvest. Culp was just completing a six-week harvest stay in Israel when Hamas attacked the southern kibbutzim on October 7th.
Stephen McElhatten is a Mansfield resident and formerly served on the Board of Directors of the Galion Chamber of Commerce. McElhatten has visited Israel five times and has guided two Israel tours totaling fifty attendees thru Shoresh Study Tours. According to McElhatten, purchasing Israel Bonds is more than a symbolic act, “It is a practical way to stand with Israel in the midst of rampant anti-Semitism” he says.
“While Richland County benefits from conservative fiscal policies managed by the Board of Commissioners, it is my belief the county also benefits from moral clarity displayed by its elected leaders. With that said, in this current conflict, Israel carries the moral high ground and also shares our values.”
Benjamin Mutti, Richland Community Prayer Network
Presently more than one hundred-fifteen state and municipal public employee pension funds and treasury funds have invested more than $5.8 billion dollars in Israel bonds. Since Israel bonds started in 1951, Israel has never missed a payment. This despite the small country going thru the Six Days War of ’67, the Yom Kippur War of ’73, the Lebanon Wars of ’78, ’82, and 2006, the Intifadas of ’87 and 2000, and the COVID pandemic.
According to the most recent Richland County Treasurer’s report, a 3-year Israel bond worth $200K will expire in December 2024. The last remaining Israel bond owned by the County, a 5-year bond worth $350K, will expire in October 2025. Richland County’s total investment in Israel Bonds represents less than half of 1% of the entire county portfolio which totals over $134M. Section 135.35 of the Ohio Revised Code allows a maximum of 2% of a county’s total average portfolio to be invested in foreign bonds.
This past week, Richland County Treasurer Bart Hamilton responded to the faith-based advocates by saying, “Israeli Bonds have been downgraded by all the rating agencies since the war started. The current rating from Moody’s is Baa1 with a negative outlook. This just barely makes it legal for me to buy. However with the negative rating, I do not feel the markets are done with the downgrades. In addition, Israel has also raised the interest rate due the to the downgrade and added risk of the notes.
Hamilton went on to say, “I do believe the prudent position for the County is to wait for the rating situation to change and begin its climb up. With the change in Washington, I believe Israel will have the support of the Federal Government in the war efforts and hopefully that will help them stabilize the situation. Once that is done, I believe the rating will come up and it would be something we can consider at that time.”
“I am still very supportive of the Board continuing these investments,” Commissioner Tony Vero said at the hearing. “Israel Bonds are nice for portfolio diversity and are a symbol of our County’s support for Israel.”
Commissioner Darrell Banks added, “We have to protect the citizen’s taxpayer dollars. During my Army service, I visited the Dachau Concentration Camp Memorial. With all the terrorists that are here in the U.S. and in Israel, we need to support Israel… I am hoping we can work something out.”
The Bottom Line:
The Bible says in Matthew 25, “The King will reply, ‘Truly I tell you, whatever you did for one of the least of these brothers and sisters of mine, you did for me.”
View video of presentation by faith-based Israel advocates to the Richland County Board of Commissioners on October 17th. (15 min.)
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