'Probably a done deal': University of Phoenix purchase on the rocks after state Senate kills bill

A lawyer in Labrador’s office also argued the new structure would not have resolved his concerns about the limits of the board’s authority in a five-page letter Tuesday.

The range of doubts, coupled with worries about the University of Phoenix’s tainted management history, prompted a mix of Republicans and Democrats to vote down the bill.

“It seems to me a little bit odd that we are the only state clamoring to make this happen,” said Sen. Lori Den Hartog, R-Meridian.

Senate Minority Leader Melissa Wintrow, D-Boise, said she was not confident enough the new structure would prove enough of a “firewall” between the university and the state if the University of Phoenix ran into financial trouble.

University of Idaho is ‘reviewing’ its options

With only two scheduled days left in the session, U of I could be running out of options.

“We are disappointed this bill did not pass and are reviewing our options,” University of Idaho spokesperson Jodi Walker told the Idaho Statesman by email.

State Board spokesperson Mike Keckler told the Statesman by phone that the board is also exploring its next steps.

Lobbyists for the University of Phoenix could not immediately be reached for comment. Gov. Brad Little’s office did not immediately respond to a request for comment. Little has supported the purchase and appointed most of the State Board.

The university has a May 31 deadline to seal the purchase and issue $685 million in bonds. A House measure — which would still need Senate approval — would allow the Legislature to sue over the deal, and Labrador has also said he may sue. The attorney general lost a related case about the state’s open meetings law against the State Board of Education in January, and has appealed it to the state Supreme Court.

State education officials have acknowledged that the legal threats from lawmakers and delays could torpedo the agreement.

Senate President Pro Tem Chuck Winder, R-Boise, who sponsored the failed bill, told the Statesman he doesn’t see a legal path forward for the land grant university to purchase the University of Phoenix without some kind of alternate structure like the one proposed this week.

Without legislative support, he was pessimistic about its prospects.

“I think it’s probably a done deal,” he said. “I think they missed an opportunity to change the face of education.”

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