Why It Matters
Florida legislators remain deadlocked over whether to move $22.47 million in state funding from the University of South Florida to New College of Florida as part of a campus transfer plan. The standoff could delay final budget approval and affects the financial viability of both institutions as they prepare for a major property handoff by July 1.
What Happened
The House and Senate exchanged second offers during budget negotiations on May 15, but the chambers remain far apart on funding tied to the transfer of USF’s Sarasota-Manatee campus to New College. The House continues to include the $22.47 million funding shift in its proposal, while the Senate has left those line items blank in both its initial and second offers.
The disagreement centers on a December proposal by Governor Ron DeSantis to reassign all buildings and facilities at the Sarasota-Manatee campus to New College. While both chambers have tentatively agreed to the physical transfer of property, the Senate opposes moving any operating funds along with it.
Under the original plan, New College would assume legal and financial liability for outstanding debt at the campus by October 30, 2026, with monthly payments of $166,617 to USF until the debt is retired. The property transfer itself is scheduled for July 1, though current students enrolled at the Sarasota-Manatena campus would be allowed to complete their degrees over the next four years.
By the Numbers
$22.47 million: Amount of funding the House seeks to transfer from USF to New College
$166,617: Monthly debt-service payments New College would make to USF
July 1: Deadline for property transfer to take effect
October 30, 2026: Date by which New College must assume full debt liability
May 29: Last day of the special legislative session
The Senate’s Position
Senate negotiators have held firm against the funding transfer since February, when sources indicated the issue could become a deal-breaker. Former USF Board of Trustees Chair Will Weatherford stated in February that losing any funds would threaten the university’s ability to pay for a teach-out allowing current students to finish degrees on their home campus and to cover employee salaries at other USF locations.
The Senate’s resistance reflects concern that stripping operating funds from USF alongside the property transfer would leave the main university unable to fulfill obligations to students and staff currently served by the Sarasota-Manatee campus.
Zoom Out
The dispute represents one of the most closely watched higher education budget issues in the state this year. It reflects broader tensions over how to fund institutional restructuring and which campus should bear the financial burden of transition costs. Sources told Florida Politics in February they expected lawmakers to ultimately align with the Senate’s position, but the House’s inclusion of the funding transfer in both initial and second offers suggests negotiations remain contentious.
What’s Next
Conference committees are scheduled to meet through Friday. Any items not reconciled by then will be referred to budget chiefs Senator Ed Hooper and Representative Lawrence McClure. Lawmakers will return to Tallahassee after Memorial Day on May 25 to vote on a final budget. The special session ends May 29.
The legislature must pass a budget by July 1 to avoid a partial government shutdown, which has never occurred in Florida history.