by Logan Finney, Idaho Reports
The Idaho Senate on Wednesday rejected a bill 14-19 that would have formalized the University of Phoenix deal under state authority.
Senate Bill 1450, just introduced on Monday, would have created an independent state body to oversee the purchase and subsequent ownership of the online institution University of Phoenix.
“This is obviously a significant issue that has been going back and forth,” said Senate President Pro Tempore Chuck Winder, R-Boise. “It was determined that a 501(c)(3) type of non-profit is not the way to do it, but the way forward was to use a body politic.”
The University of Idaho and State Board of Education formed an affiliated non-profit corporation, Four Three Education, to handle the purchase and eventually oversee the private university.
“The nonprofit would get swallowed by the body corporate politic, so the deal that they have structured basically gets absorbed into this new entity,” Winder said.
A handful of senators explained the reason behind their votes.
“Other states have purchased for-profit universities. None of those transactions have benefitted those states. They’ve seen significant losses,” said Sen. Lori Den Hartog, R-Meridian, who voted no.
“Their online technology is amazing, and we’re in a position to reap some of that,” said Sen. Kevin Cook, R-Idaho Falls, before he voted yes. “The revenues keep going up. I just think this cannot go wrong.”
Sen. Glenneda Zuiderveld, R-Twin Falls, expressed skepticism at how quickly the legislation advanced to the Senate floor.
“I’m always worried when things come through quick,” said Zuiderveld, who voted no.
Lawmakers have been scrutinizing the deal since the University of Idaho suddenly announced it to the public last year.
“This change itself is sort of a tacit admission that they got it wrong,” said Sen. Doug Okuniewicz, R-Hayden, who voted no. “We shouldn’t be so quick to trust that they got it right this time.”
Both chambers of the legislature are scheduled to reconvene on Thursday morning.
SB 1450 – Four Three Education, University of Phoenix
AYE (14) – Anthon, Bernt, Cook, Guthrie, Harris, Hartgen, Just, Lakey, Lee, Lent, Ruchti (Shea), Schroeder, Winder, Ward-Engelking (Patterson)
NAY (19) – Adams, Bjerke, Carlson, Den Hartog, Foreman, Grow, Hart, Herndon, Lenney, Nichols, Okuniewicz, Rabe, Ricks, Semmelroth, Taylor, Toews, Trakel, Wintrow, Zuiderveld
ABSENT (2) – Burtenshaw, VanOrden
Logan Finney | Associate Producer
Logan Finney is a North Idaho native with a passion for media production and boring government meetings. He grew up skiing, hunting and hiking in the mountains of Bonner County and has maintained a lifelong interest in the state’s geography, history and politics. Logan joined the Idaho Reports team in 2020 as a legislative session intern and stayed to cover the COVID-19 pandemic. He was hired as an associate producer in 2021 and they haven’t been able to get rid of him since.