Senate, House divided over USF funding shift to New College

The Senate is taking a restrained approach to New College of Florida’s expansion, omitting a House-backed $22.47 million funding shift from the University of South Florida that would dramatically reshape Sarasota’s higher education landscape.

The Senate proposal, released a little after 3 p.m. on Friday, allocates $37.3 million in recurring education and general funding to New College of Florida.

While that base funding level closely mirrors the House’s roughly $37 million allocation for New College, the Senate proposal does not include the House’s most aggressive restructuring component. Under the House plan, published Thursday, an additional proposed $22.47 million in funding would be transferred from the University of South Florida to New College.

The only direct USF funding transfer in the Senate spreadsheet redirects $5 million from USF’s Education and General funds to the Florida Center for Nursing, not to New College.

The Senate also provides $204,407 in student financial assistance for New College, with at least 75% of those funds required to be distributed as need-based aid.

The House proposal, meanwhile, also specifies that $10 million in recurring general revenue must be used for operational enhancements, with at least $5 million dedicated to student scholarships. The House budget outlines the same $204,407 student financial assistance allocation, with 75% required to be need-based.

The House proposal is closely aligned with Gov. Ron DeSantis’ broader plan to transfer all real property and facilities associated with USF’s Sarasota-Manatee campus to New College. Under the House budget, all buildings and real estate tied to USF’s Sarasota-Manatee campus would transfer to New College by July 1. The two institutions would be required to enter into a written joint transfer agreement, with the Board of Governors authorized to resolve any disputes.

New College would be required to assume full responsibility for any outstanding facility debt no later than Oct. 30, and would have to make monthly payments of $166,617 to USF until the debt is paid off. 

Current USF Sarasota-Manatee students would be guaranteed priority access to campus space for up to four academic years to complete their degrees locally, and existing housing contracts would be honored through at least mid-August 2027. After the transfer, USF would no longer assign newly admitted students to Sarasota-Manatee as their home campus — effectively phasing out its long-term presence in the community.

Since the Senate’s higher education budget does not include the funding transfer, the future of the House’s funding transfer remains up in the air headed into the budget conference.