The Idaho Senate rejected a bill that would’ve created a new political entity to oversee the purchase of the University of Phoenix.
Introduced earlier this week, the board of regents of the University of Idaho would’ve created a new corporation, called Four Three Education, to buy the for-profit college for $685 million.
The goal, supporters said, is to absorb University of Phoenix’s online education technology and bring that to Idaho’s higher education system. Four Three Education was intended to shield taxpayers from any liability if the deal went south and add legislative oversight of its operations.
But state senators, like Senate Minority Leader Melissa Wintrow (D-Boise), weren’t sold on the deal.
“I am not convinced yet that the firewall is there to prevent liability to the state in case something would go wrong,” Wintrow said.
A handful of lawmakers who briefly debated Wednesday afternoon made similar comments. It ultimately failed 14-19.
The planned acquisition of the University of Phoenix has exacerbated lawmakers in Boise this entire session, leading to hours of hearings.
Senate Pro Tem Chuck Winder (R-Boise), who sponsored the bill, said he isn’t bullish on the future of the purchase.
“If they don’t have a legal way to go forward, I don’t know that they can complete the deal,” Winder said.
A U of I spokesperson said the school is disappointed in the outcome and is reviewing its options.
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