Pro-Palestinian protesters celebrate Sacramento State’s investment policy change – NBC 7 San Diego
Divesting from Israel has been the rallying cry during pro-Palestinian rallies on college campuses. But experts say it’s not that easy, especially because of a state law.
That hasn’t stopped one California State University from changing its investment policy. Student protesters at Sacramento State are celebrating what they call a victory, after the pro-Palestinian group says the university met its divestment demands.
“Sac State’s administration did everything right. This is what they should have done,” one of the protesters said.
Luke Wood, the university president, issued a statement about the changes it made this week to its investment policies, saying, “We have created a policy on socially responsible investment. We believe it’s important our efforts to fund students’ education doesn’t rely on us benefiting from companies that profit from ethnic cleansing, genocide or human rights violations.”
“They have to be very careful because if they are not careful, they may jeopardize state funding,” legal analyst Dan Eaton said. “This is not an easy minefield on any level.”
A 2016 law doesn’t allow the state to fund or contract $100,000 to any person or organization that boycotts specific countries. Israel is specifically named in the law.
“If Sacramento State proceeds with their plans to reevaluate their investment, they’re going to have to do it in such a way that it avoids the mandate of this state law, even assuming they can do it,” Eaton said.
Sacramento State recently updated its “policy on policies” to add: “CSU Sacramento opposes and condemns all acts of genocide, ethnic cleansing, and other activities that violate fundamental human rights. CSU Sacramento will not engage in any activity or enter into any agreement that conflicts with these values.”
The pro-Palestinian protests at UC San Diego continue, just two days after local law enforcement broke up an encampment on campus and arrested 64 people. NBC 7’s Kelvin Henry reports on May 8, 2024.
The new policy does not mention any specific countries.
“Our administration paved the way. There should be no excuse for all the other campuses to not follow these students’ demands,” a protester said.
When asked how the state law may impact their change in investment policy, a Sacramento State spokesperson referred NBC 7 to an online statement from the chancellor of the Cal State system, which is below:
“In light of its fiduciary responsibilities and existing policies governing the assessment of environmental, social, and governance risks, the California State University does not intend to alter existing investment policies related to Israel or the Israel-Hamas conflict.
“Because of state law and CSU’s investment policies restrictions, the CSU does not invest in direct stocks or equities in any companies. The system does invest in mutual funds, bonds, and other instruments.
“Through careful management of the university funds, CSU investments provide a stable revenue stream that benefits our students and faculty, and supports our critical campus facilities, scholarships, and other key elements of our educational mission.
“While the CSU affirms the right of our community members to express diverse viewpoints, a divestment of this sort impinges on the academic freedom of our students and faculty and the unfettered exchange of ideas on our campuses.”
