The $14.45 million problem with the Idaho Education Network, in which federal “e-rate” funding the state expected never came in, apparently is related to the Syringa Networks lawsuit over the award of the contract to run the IEN to Education Networks of America. Sen. Shawn Keough, R-Sandpoint, told state Department of Administration Director Teresa Luna this morning, “I was not aware of this until this week, and that’s very disheartening, because it appears that this happened back in July.” Keough said the situation “appears to be driven by the Syringa lawsuit.”

Luna responded, “While we believe it may be related to the lawsuit, we’re not 100 percent sure.” She said, “Just because we settle does not mean that the e-rate funds would be released. If we settle, our attorneys are worried that it could look like an admission of guilt in some way.”