University of Idaho reports improved finances, details Phoenix deal status and DEI reorganization to JFAC

C. Scott Green, president of the University of Idaho, told the Joint Finance‑Appropriations Committee on Jan. 27 in Boise that the university has strengthened its finances since a multi‑million‑dollar reduction in prior years, but that certain accounting and benefit items still affect reserve ratios. He also provided status updates on a potential University of Phoenix affiliation, the State Board of Education DEI policy implementation and a range of research and partnership initiatives.

Kevin Campbell of the Legislative Services Office opened the university presentation, reporting an enrollment of 12,286 students and a base budget of about $196.3 million. He reiterated that tuition and fee reappropriations are treated as part of institutions’ spendable authority and that a history of base reductions and enhancements affects year‑to‑year comparisons.

Financial condition and OPEB: Green said earlier structural problems have been addressed and that the university’s unrestricted net position remains negative for accounting purposes, while total net position is positive. He said the university took an approximately $26 million base reduction in FY2021 to align expenses with revenue and that legacy retiree medical obligations (OPEB) created a material accounting effect. Green summarized the net position status: unrestricted negative approximately $17 million, restricted net position positive about $31 million, and total net position positive at roughly $319 million. He told the committee the university “maintains sufficient cash reserves to support its short term and long term obligations.”

Phoenix affiliation: Green described a non‑binding, extended purchase agreement with the sellers of the University of Phoenix that runs through June 10, 2025. He said the agreement permits the sellers to continue negotiations with other parties and that the university received $5 million at signing to offset transaction expenses. Green said the agreement includes a breakup fee of up to $20 million to cover the university’s costs if the sellers go another route.

DEI reorganization and student services: Responding to the State Board of Education resolution on statewide DEI policy, Green said University of Idaho leaders closed several DEI‑labeled offices at the end of 2024 and reassigned staff into other student‑support roles. He listed the offices dissolved: Office of Equity and Diversity, Office of Multicultural Affairs, the Black/African American Cultural Center, the LGBTQA office and the Women’s Center; the chief diversity officer position was repurposed as executive director of tribal relations. Green said some services were consolidated under a Vandal Success program and a new first‑generation student support unit and that many staff were reassigned rather than terminated.

Research, workforce and partnerships: Green and university staff described ongoing partnerships with Idaho National Laboratory (INL) on energy and nuclear research, an expansion of water‑resources research through the Idaho Water Resources Research Institute, and ongoing medical‑education discussions. On WWAMI, Green said the university will continue its existing WWAMI partnership while exploring a potential affiliation with the University of Utah School of Medicine, subject to State Board review and any required legislation.

Grants and pass‑throughs: Committee members asked about federal grant pass‑throughs. Green said the university routinely serves as a lead on research awards and distributes subawards to collaborating institutions; he agreed to provide a list of subrecipients to the committee and said compliance staff review those awards.

What the committee asked next: Members pressed for more detail on reserve ratios, the FY2021 reductions, OPEB accounting mechanics, the University of Phoenix timeline and conditions, and the reorganization of student services after the DEI office closures. Green said the university will follow up with requested documents and emphasized the university’s statewide research and workforce role.

Ending: Green closed by summarizing enrollment growth, recent national rankings for value, and ongoing investments in energy, water and health sciences research, and asked for continued legislative partnership as the university works through pending transactions and organizational changes.