BOISE, Idaho — This article originally appeared in the Idaho Press.
The Idaho House has moved forward a resolution that may result in legal action against the University of Idaho's bid to purchase the University of Phoenix.
The chamber voted 49-21 on Tuesday to approve House Concurrent Resolution 26, which asks the State Board of Education to reconsider its actions to create a not-for-profit in order to purchase the online institution through a bond.
The bond amount is expected to total $685 million.
House State Affairs voted to send HCR 26 to the floor on Friday, after a two-day hearing in which UI President C. Scott Green, the university’s hired attorneys on the deal, and State Board member Kurt Liebich defended the actions and the deal.
HCR sponsor Rep. Brent Crane, R-Nampa, said Tuesday to open debate that he left that hearing with a number of concerns related to the transparency and accountability with a private nonprofit entity, which would be created to oversee the university, and whether the move is within the land grant university’s mission.
Crane repeated Green’s testimony from the hearing that the university had “no mechanism” to come to the Legislature while it was undergoing preliminary negotiations in closed-door meetings ahead of a May 18 public vote.
“Well I have a cellphone, and I have a laptop, if you want to get ahold of me, you can call my cellphone or shoot me an email,” Crane said. “This piece of legislation will provide a mechanism for the University of Idaho to talk to the Legislature.”
Crane said that committee members never received requested documents from the university regarding the transaction.
Rep. Britt Raybould, R-Rexberg, said she shared many of the concerns about the deal but didn’t support the part of the resolution that would direct legislative leaders to look into legal action.
"Do we embrace to this idea that instead of pursuing policy changes, we default to the courts? We are a body capable of action," Raybould said. "We are a body capable of putting forward new policy, and yet here we are arguing that the next course of action for this body should be pursuing a court case."
Rep. Julie Yamamoto, R-Caldwell, also debated against the resolution because she didn’t want to spend taxpayer money on both sides of a potential court battle.
Others argued that because a contract had already been signed between UI and the University of Phoenix, a lawsuit would be the only way to stop or slow down the transaction.
Rep. John Gannon, D-Boise, who co-sponsored the resolution, argued that it needed teeth in order to get the State Board and university to reconsider its process.
“What I’m saying is this: we need a re-hearing, we need a reconsideration with everybody involved, and maybe vote yes or no, up or down with everybody in this Legislature,” Gannon said.
Rep. Lori McCann, R-Lewiston, argued that the university already did follow its process, including going to the State Board of Education, which also serves as the school’s governing board of trustees.
“We should not change the process in the middle of the stream,” McCann said.
She also highlighted potential benefits of adding the online platform to the UI and to help address a coming “enrollment cliff” due to declining birth rates and the anticipated drop in enrollment.
Rep. Julianne Young, R-Blackfoot, said she left last week’s hearing with more questions and was unsatisfied with the answers provided about whether the board and university acted within their authority to create the nonprofit corporation.
“Until we settle that question, nothing else matters,” Young said.
Rep. Wendy Horman, R-Idaho Falls, said the deal would include a “tremendous debt” and seemed structured in a way to intentionally exclude the Legislature. She thought using taxpayer funds to protect taxpayer funds was appropriate.
Green has repeatedly said the university believes it was within its authority and had sought advice from private law firms and subject matter experts. He has also said the potential benefits of the transaction outweigh the risks.
It’s unclear if the State Board will un-do its previous actions on the deal and seek legislative approval. Green has said the university is hoping to go to market for the bond in May.
On Friday, Board of Education spokesperson Mike Keckler said the members are willing to “sit down and discuss” the transaction further.
“The Board stands by the merits of the proposal and the hope is we can work with legislators on a path forward,” Keckler wrote.
HCR 26 now goes to the Senate.
This article originally appeared in the Idaho Press, read more on IdahoPress.com.
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