Idaho legislators spent two hours Friday questioning University of Idaho officials about the university鈥檚 plans to form a new nonprofit organization to acquire the for-profit University of Phoenix for $550 million.

The on May 18, which caught many legislators and members of the public off guard because the deal had only come to light publicly 24 hours earlier, .

The Idaho Legislature鈥檚 Joint Finance-Appropriations Committee met in an open, public meeting Friday at the Idaho State Capitol in Boise to allow legislators on the committee to seek additional information about the deal.

During Friday鈥檚 meeting, University of Idaho President C. Scott Green discussed the legal structure of how the two entities would operate moving forward, including transforming University of Phoenix into a not-for-profit and transferring $10 million annually in expected surpluses generated from the University of Phoenix to the University of Idaho. Green also shared a one-page spreadsheet with financial metrics and projections with legislators.

Green called the deal a bold and innovative step into the future of digital education that will allow the university to enroll a wider variety of nontraditional adult students.

鈥淚 truly believe this affiliation with the University of Phoenix is a catalyst for greater success in higher education in our state,鈥� Green said Friday.

Idaho legislators question university president on financial risks of acquisition

Several legislators had questions about the financial risks involved with the deal and concerns about nondisclosure agreements signed during the negotiations. Other legislators had questions about University of Phoenix鈥檚 prior business practices and public reputation. In 2019, for instance, the University of Phoenix agreed to pay $191 million to settle a complaint from the Federal Trade Commission that alleged the University of Phoenix engaged in deceptive marketing practices to recruit students, .

On Friday, Rep. Wendy Horman, an Idaho Falls Republican who serves as the co-chair of JFAC, told Green that nondisclosure agreements included in the deal raised some red flags for her because they prevent legislators and the public from understanding the financial risks of the deal.

鈥淚n a nutshell, this is the University of Idaho proposing to acquire an entire multi-state university system with something of little bit of a troubled history,鈥� Horman told Green.

鈥淲hat I have yet to appreciate is these strict nondisclosure agreements with anyone who seems to have this knowledge but is forbidden from disclosing, and so that raises some red flags for me, frankly,鈥� Horman added. 鈥淚f it is such a great deal, you would think people would be anxious to share the proof. 鈥� Without those financials, it is a big ask for me to trust that the downward trend in value won鈥檛 continue, candidly.鈥�

University鈥檚 nondisclosure agreements on deal are still binding, Green says

Green told legislators the deal has not closed, and the nondisclosure agreements are still in place and binding in order to protect competitive trade secrets. The next steps for moving forward to close the deal include seeking approval from the University of Idaho and University of Phoenix鈥� accrediting organizations and then entering the bond market to reduce financing. The that a new nonprofit organization will borrow $685 million to finance the deal to acquire University of Phoenix. The nonprofit, which is called Idaho Education Initiatives, Inc., will acquire the University of Phoenix鈥檚 assets and liabilities and then continue to operate the University of Phoenix under the University of Phoenix name.

鈥淚 fully recognize the way this transaction was conducted was not ideal,鈥� Green told legislators at one point Friday.

However Green said financial and legal experts have vetted the deal closely, and Idaho taxpayers will not be on the hook for any payments.

As traditional enrollment dips, University of Phoenix deal could be financial lifeline, UI president says

Green told legislators that the deal is necessary because the university needs to change its business and educational models before running off an 鈥渆nrollment cliff鈥� with traditional students.

Green estimated that the entire higher education system could see enrollment decreases of more than 15% from 2025 to 2035. One strategy to offset that decline is to expand on the number of nontraditional adult learners that are being served by the university, he said.

鈥淥ne thing we will learn from the University of Phoenix is how best to serve online students, adult students and non degree-seeking students,鈥� Green said.

Green said it made more sense to acquire the University of Phoenix rather than build a digital education system from the ground up.

Green told legislators that after the deal is closed, the University of Idaho will not own the University of Phoenix and the two will be separate, but affiliated entities.

鈥淪aying that there is no risk, we have never said that,鈥� Green told legislators.

JFAC co-chairman Sen. C. Scott Grow, R-Eagle, told reporters that he felt that Friday鈥檚 meeting was productive and helpful, but he still has unanswered questions and concerns about the deal.

鈥淚 still have serious concerns about the nondisclosure agreement,鈥� Grow said. 鈥淚 felt that, at least, legislative leadership should have been involved with that, if not the co-chairs of JFAC. I mean we are the appropriating body for all the universities. 鈥� We appropriate moneys for the University of Idaho.鈥�

鈥淲e felt that we should have been involved earlier,鈥� Grow added. 鈥漈hey told us when it was kind of a done deal, when they鈥檝e signed it and that鈥檚 one reason we are jumping into it now because this is about as soon as we could get a hearing together.鈥�

Grow told the Idaho Capital Sun that he first found out about the deal on the day before the State Board of Education voted to approve the plan on May 18.

鈥淭he State Board (of Education) should consider having public hearings so that the public can be involved in sharing their feelings about this thing, and not just a few folks who are in on the nondisclosure agreement,鈥� Green said.

is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Idaho Capital Sun maintains editorial independence. Contact Editor Christina Lords for questions: info@idahocapitalsun.com. Follow Idaho Capital Sun on and .

The federal law prohibiting sex discrimination also bars colleges and universities from denying counseling and other services to abortion patients and contraception to all students 鈥� even in states where abortion is now severely restricted, the U.S. Education Department said Tuesday.

The , which clarifies the longstanding rules for federal Title IX funding that virtually all colleges and universities receive, comes as several states have moved to ban or greatly limit abortion. The federal insistence on compliance with the Title IX regulations appears to be in conflict with some state policies.

The University of Idaho, for example, issued a memo last month  not to provide reproductive health counseling or contraception in order to comply with a state law.

President Joe Biden and Vice President Kamala Harris singled out the University of Idaho during a public meeting of the White House Reproductive Rights Task Force on Tuesday.

鈥淭hey told university staff they could get in trouble just for talking or telling students about birth control,鈥� Biden said, referencing the memo. 鈥淔olks, what century are we in?鈥�

Idaho is among the 13 states where nearly all abortions are illegal following the U.S. Supreme Court鈥檚 ruling in June that removed the nationwide right to an abortion, according to the reproductive rights policy research organization .

The Idaho Supreme Court  to hear oral arguments on the merits of three Idaho abortion laws.

The federal high court ruling 鈥渉as sown fear and confusion on our college campuses,鈥� Education Secretary Miguel Cardona said at the task force meeting.

Tuesday鈥檚 guidance was intended 鈥渢o remind schools of their obligations under Title IX,鈥� he added.

The department鈥檚 civil rights office  that a Utah community college violated Title IX by not making accommodations for a pregnant student and encouraging the student to drop a course because she was pregnant.

The University of Idaho memo said university employees could not provide patients with birth control or emergency contraception. The document referenced a 2021 law that bans public funding to 鈥減rocure, counsel in favor, refer to or perform an abortion.鈥�

Standard birth control can still be dispensed at student health facilities, whose workers are not employed by the university, according to the memo.

A spokeswoman for the university did not immediately return an email seeking comment on the Education Department guidance and Biden and Harris鈥� remarks.

Abortion bans have affected other health services, White House press secretary Karine Jean-Pierre told reporters Tuesday. Women have been denied prescriptions to treat miscarriage or conditions like arthritis and there are 鈥渢hreats to contraception,鈥� including for college students, Jean-Pierre said.

Harris noted that 19th-century laws banning abortion in Arizona and Wisconsin have recently gone into effect.

Doctors testify

The White House task force outlined some dire consequences of state abortion bans.

In Wisconsin, the abortion ban is sending some patients to Minnesota and Illinois and leaving many who need care without access, Dr. Kristin Lyerly, a Green Bay OB-GYN, said.

And it鈥檚 had a chilling effect on abortion providers, who can now only perform an abortion when the mother鈥檚 life is at risk. But even the judgment required in that decision could scare doctors from performing a medically necessary procedure, she said.

鈥淧regnant people don鈥檛 have a warning light that comes on when they鈥檝e crossed that threshold,鈥� she said. 鈥淚n places like Sheboygan County, where the district attorney has specifically said that he will prosecute physicians, can I count on him to trust my clinical judgment?鈥�

Georgia OB-GYN Dr. Nisha Verma told the task force that she鈥檚 had to turn away patients with high-risk pregnancies or fetal abnormalities since that state鈥檚 six-week ban went into effect.

鈥淚magine looking someone in the eye and saying, 鈥業 have all the skills and the tools to help you. But our state鈥檚 politicians have told me I can鈥檛,鈥欌�� she said.

Appeal to Congress

Biden, Harris and Jean-Pierre all urged Congress to pass a law codifying a nationwide right to abortion.

鈥淚f there were a national law that was passed in the United States Congress to protect reproductive care, so-called (state) leaders could not ban abortion,鈥� Harris said. 鈥淭hey could not criminalize providers. They could not limit access to contraception.鈥�

Biden added that congressional Republicans would seek a nationwide abortion ban, alluding to South Carolina Republican Sen. Lindsey Graham鈥檚 bill  to enact such a ban.

is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Ohio Capital Journal maintains editorial independence. Contact Editor David DeWitt for questions: info@ohiocapitaljournal.com. Follow Ohio Capital Journal on and .