Idaho budget writers approve $8M for settlement

BOISE – State budget writers signed off on a surprise $8 million request Tuesday from top legislative leaders to pay for a possible settlement over an illegal statewide contract for broadband in public schools.

The Joint Finance Appropriations Committee voted 19-1 to approve the request from House Speaker Scott Bedke and Senate President Pro Tem Brent Hill. It comes after the state Supreme Court upheld a decision earlier this month that voided the $60 million contract.

“The bulk of what we’re requesting today is for a settlement,” Hill said, adding that any remaining funds could be funneled toward other pending litigation.

A consortium of telephone companies called Syringa Networks sued the state over the broadband contract in 2009, contending the Idaho Department of Administration illegally handled the contract to install the infrastructure in schools.

A district judge ruled in February 2015 that the broadband contract was illegal and violated the state’s procurement laws. Idaho then lost its appeal.

Idaho already has agreed to pay around $1 million for Syringa Networks’ legal fees. The state also has spent nearly another $1 million on its own failed legal defense.

Amid the court battle, officials have been negotiating with the main vendors, Education Networks of America and Qwest, to come up with a fair dollar amount to cover the work the companies did under the contract but were not yet paid for.

The House speaker said he wants flexibility to settle with the vendors while the Legislature is adjourned.

“The $8 million signals nothing,” Bedke told the Associated Press. “But, obviously, we believe (the settlement) is going to happen when we’re not here.”