The University of Idaho's plan to buy the University of Phoenix now faces one less obstacle.
An Ada County judge rejecting a claim brought by Idaho Attorney General Raúl Labrador in a lawsuit against the State Board of Education.
Labrador had sought to nullify the board's decision to allow U of I to pursue the $685 million deal.
Idaho News 6 spoke with Kevin Richert, a senior reporter with Idaho Education News. His team has been following the story every step of the way. He said the question facing the court was simple.
“Was it legal for the state board of Education to go behind closed doors to discuss this purchase, in advance of coming out and voting for it publicly." Richert said.
Labrador argued that the board violated Idaho's open meetings laws when they met in closed executive sessions on several occasions to discuss the $685 million deal.
However, the judge sided with the board, saying they had reason to believe it was a competitive bid, and thus did not violate Idaho's Open Meetings Law.
Despite the ruling, the acquisition is still far from a done deal.
The University of Idaho still needs to source the $685 million.
“They have to go out into the Bond market and put together a $685 million package to finance this deal, that’s been effectively on hold because of this lawsuit," Richert said.
The Attorney General's office issued a statement saying that they believe the District Court incorrectly interpreted and applied the Open Meeting Law.
“The law requires much more of its officials than the District Court required, and it provides much greater protection to the public than the District Court gave,” said Attorney General Raúl Labrador. “The District Court’s ruling will lead to far less government transparency and accountability. That is bad for Idaho citizens, and it defies the entire purpose of the law. We are looking closely at all appellate options to ensure Idaho’s Open Meetings Law remains a bulwark for openness and government accountability.”
In an in-depth article on the subject, Idaho Education News reports a key deadline looms; if a deal is not closed by May 31st, either party could walk away.
