A message from Dennis Leone on Divestiture: STRS Board playing politics with OUR MONEY

From Dennis Leone, August 3, 2007
Subject: Divestiture
CORE – so you know, and to set the record straight, the Board voted 6-2 at the June STRS Board meeting to develop a plan by December 31 to voluntarily reduce investments in Iran and Sudan. Craig Brooks and I voted no and argued that we should do nothing more than simply “consider” the matter. I publicly argued further that I did not even want staff time spent developing such a plan. I said in June, as the Columbus Dispatch editorial did a few days ago: “Today it’s Iran and Sudan, tomorrow it may be China and Pakistan.” Voting for the resolution were Ramser, Cervantes, Chapman, Puckett, Hayden and Johnson. Lazares and Meuser were absent. I stated further, publicly, that since the matter was heading back to a Senate sub-committee for new consideration, it would wrong for us to agree to any reduction plan at this juncture. The 6 board members who voted yes all feel that their affirmative vote will help us politically in the eyes of lawmakers and therefore help our health care initiative.

I should add that all of the articles I have been reading in newspapers over the past 2 months are NOT accurate. While the executive directors from the 5 pension systems may have promised to the House Speaker that we will reduce our Iran/Sudan investments by 50%, the STRS Board did NOT agree to this. It seems to me, given that this matter has been “shelved” legislatively for the time being, that the STRS Board has egg on its face for voting as it did in June…………which they publicly admitted was purely for political reasons. Playing politics with membership money. I am so tired of it……………..