IDAHO, USA — The Idaho State Board of Education (ISBE) unanimously voted, after consultation with legal counsel, they did not break any open meeting laws during the May 15 executive session meeting.
The State Board of Education voted to approve the University of Idaho's $550 million acquisition of the University of Phoenix the following May 18 meeting. Idaho Attorney General Raúl Labrador is moving forward with a lawsuit alleging the May 15 meeting led to the action executed three days later.
The lawsuit is asking to render the May 15 meeting void, and therefore block all action leading to the acquisition.
"Today, ISBE had an opportunity to simply cure a mistake and make a clear commitment to transparent governance. Instead, the Board neglected their duties and continued down a path of wasting taxpayer funds and resources to justify its failure to follow Idaho Open Public Meeting laws all to keep a half-billion dollar transaction from public discourse," the AG's office wrote KTVB in an email. "The people of Idaho should be given an opportunity to evaluate such a significant financial decision."
An executive session is closed to the public; it's legal for a public agency under Idaho law in the case of specific exemptions. ISBE cited their exemption - Idaho Code 74-206(1)(e) - in their May 15 meeting minutes:
"... to consider preliminary negotiations involving matters of trade or commerce in which the governing body is in competition with governing bodies in other states or nations."
That exemption does not properly apply, according to the AG's lawsuit. The circumstances surrounding ISBE's May 15 executive session failed to meet two necessary criteria points, the lawsuit said.
- The negotiation was preliminary
- The negotiation was in competition with others
Considering ISBE voted three days later to approve a $550 million acquisition, the AG's office alleges the May 15 meeting is not preliminary, and better described as an "advanced stage of the process."
Moreover, the lawsuit identifies the University of Arkansas as potential competition to purchase the University of Phoenix. However, the University of Arkansas Board of Regents rejected a $500 million proposal in April, according to the lawsuit.
The AG's office could not identify any other active competition by the time the May 15 occurred.
"Every elected Idaho official should want public affairs to be conducted in full view of the public and consistent with the law. The people of Idaho deserve nothing less. This shouldn’t be controversial,” the AG's office said.
ISBE is actively trying to find and retain legal counsel for the purposes of defending against the legal claims brought against them by the AG's office, ISBE wrote in a news release.
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