In a resolution released Thursday, lawmakers are threatening lawsuits opposing the University of Idaho's proposed acquisition of the University of Phoenix.
The bipartisan resolution, which has been in the works for weeks, comes as U of I and Phoenix hope to finalize a controversial $685 million deal. It also sets up a high-stakes political showdown that pits lawmakers against Gov. Brad Little, who supports the Phoenix purchase, and the state Board of Education.
One of the bill's two co-sponsors did not pass judgment on the merits of the Phoenix purchase, but criticized a series of closed-door meetings of the state committee that left lawmakers in the dark.
“To me, process is important,” Rep. Brent Crane, R-Nampa, said during a brief hearing unveiling the initiative. “We haven’t addressed this process at all.”
“I think this is an ambush purchase,” said Rep. John Gannon, D-Boise, who co-sponsored the bill.
The House State Affairs Committee unanimously voted to advance this resolution. This sets the stage for a full public hearing before the committee.
Thursday's resolution urged the state board to “reconsider.” Vote May 18 in support of purchaseReconsider any affiliation linking U of I with Phoenix, “unless Congress enacts legislation authorizing such action.”
The lawsuit threat comes after the three-page resolution is finalized. Speaker of the House Mike Moyle and Senate President Pro Tempore Chuck Winder will be assigned to act on behalf of Congress, with powers that include “initiating appropriate legal action.”
The U of I said Phoenix's national operations would provide millions of dollars in new annual revenue, and the U of I also touted the opportunity to leverage Phoenix's online education platform. U of I minimized the risk of the purchase, saying losses would be limited to about $10 million per year. U of I acknowledged but also downplayed the pitfalls of acquiring a for-profit partner with a checkered history.
U of I officials quietly began pursuing the purchase of Phoenix more than a year ago. But lawmakers and most Idahoans knew nothing about the proposal until May 17, when the state committee scheduled its first and only public meeting to discuss the idea.
Some lawmakers have since complained that they were left out of the process while publicly questioning the merits of the purchase. The Joint Finance-Appropriations Committee held a rare oversight hearing last June to question University of Illinois and state board leaders about the proposal.
This is a developing story. Check back later Thursday for a breakdown of the issue.
The timeline and details of the proposal are as follows: