State school board considers Labrador lawsuit over U of Idaho-Phoenix deal, decides this
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Inside the University of Idaho’s purchase of the University of Phoenix
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The Idaho State Board of Education said it did not violate the state’s open meetings law when it discussed the University of Idaho’s plans to acquire the University of Phoenix in secret proceedings.
At a closed meeting Friday, the board and its legal counsel discussed a lawsuit from Idaho Attorney General Raul Labrador alleging that the board broke the law when it held three meetings in closed session regarding the proposed acquisition — on March 22, April 25 and May 15.
Labrador sued June 20 in District Court in Ada County, asking the court to void the board’s May 18 vote where it unanimously approved the purchase, alleging that it was the result of illegal deliberations just a few days earlier.
The May 18 meeting was the first time the board publicly discussed the transaction.
After considering the lawsuit privately for about 35 minutes Friday, the board reconvened in an open session, with U of I President Scott Green attending, and quickly voted to adopt a determination that no open meetings law violation occurred at the May 15 meeting.
“The attorneys engaged in this transaction determined that the exemption applied,” State Board President Linda Clark said. “Even now with the benefit of hindsight analysis, we believe the exemption applies. Therefore no violation occurred and no cure is necessary.”
Idaho’s open meetings law requires, with some exceptions, that “all meetings of a governing body of a public agency shall be open to the public.”
The board had cited an exemption “to consider preliminary negotiations involving matters of trade or commerce in which the governing body is in competition with governing bodies in other states or nations.” The University of Arkansas also considered buying the University of Phoenix, though trustees ultimately rejected the purchase in April.
State Board Executive Director Matt Freeman sent a letter to Labrador’s office June 30, saying the board consulted with Labrador’s office before the May 15 meeting to ensure it was conducted legally.
“Additionally, the deputy attorney general your office assigned to the board was present for the entirety of the May 15 meeting and no concerns with its legality were ever raised to the board,” Freeman said. “To adequately respond to the lawsuit, the board now requires legal counsel who is both experienced in ligation and acting independent of Attorney General Labrador.”
Freeman said the board will send invoices for the legal counsel to Labrador’s office for payment from the funds appropriated to his office.
In a statement emailed to the Idaho Statesman on Friday, the attorney general’s office said that government affairs should be conducted in full view of the public and consistent with the law.
“Today, (the board) had an opportunity to simply cure a mistake and make a clear commitment to transparent governance,” the statement said. “Instead, the board neglected their duties and continued down a path of wasting taxpayer funds and resources to justify its failure to follow Idaho open public meeting laws, all to keep a half-billion dollar transaction from public discourse. The people of Idaho should be given an opportunity to evaluate such a significant financial decision.”
This story was originally published July 7, 2023 at 10:59 AM.
