USF Sarasota-Manatee campus transfer to New College could collapse over House’s $22.5M funding proposal

A behind-the-scenes agreement to transfer the University of South Florida’s Sarasota-Manatee campus to New College of Florida could fall apart if New College pushes to also secure a $22.47 million funding shift from USF proposed by the House.

Sources familiar with negotiations say USF is willing to transfer the Sarasota-Manatee campus land and buildings to New College, but that a House budget proposal to also transfer $22.47 million in recurring funds from USF to New College could be a deal breaker.

“We have been clear that the loss of any funds threatens our priority to protect our people, as they are necessary to pay for a teach-out so current USF Sarasota-Manatee students can finish their degrees on their home campus and for USF Sarasota-Manatee employees’ salaries on another USF campus,” USF Board of Trustees Chair Will Weatherford said in a statement.

The House and Senate are divided over the proposal. The House budget, unveiled last week, included language teeing up that $22.47 million funding transfer on top of roughly $37 million in base funding for New College.

In contrast, the Senate’s budget also allocates $37.3 million to New College but does not include the additional $22.47 million shift from USF. Although sources say the deal could fall apart if New College pushes for the additional funds, they also expressed confidence that lawmakers will ultimately align with the Senate’s approach as budget negotiations move forward.

Gov. Ron DeSantis first pitched the property transfer in his proposed budget, outlining how the campus transition would work but making no mention of the funding shift proposed by the House. Under his framework, all real property and facilities associated with USF’s Sarasota-Manatee campus — including buildings, dormitories, leaseholds and other assets — would transfer to New College by July 1. 

The two institutions would be required to execute a written joint transfer agreement identifying the specific assets and liabilities involved, with the Board of Governors authorized to resolve any disputes between the schools. New College would assume full legal and financial responsibility for any outstanding facility debt tied to the campus no later than Oct. 30, and would be required to make monthly payments of $166,617 to USF until that debt is repaid.

The proposal also includes teach-out protections for current USF Sarasota-Manatee students, guaranteeing them priority access to campus space for up to four academic years to complete their degrees locally, while requiring New College to honor existing housing contracts through at least August 2027. Going forward, USF would no longer assign newly admitted students to Sarasota-Manatee as their home campus, effectively phasing out its long-term presence there.

The fate of the deal appears to hinge on whether the House backs off from the $22.47 million funding transfer, or the entire arrangement could unravel, causing New College’s expansion plans to hit a major snag. Weatherford said negotiations have shown that New College’s expansion is a priority for the state, and acknowledged questions about the efficiency of having multiple campuses that operate separately located within 1 mile from each other.

“The growth of New College and its opportunity to serve the Sarasota and Manatee counties region with additional facilities would also provide a path for USF to reinvest those resources in strategic areas that would further elevate our university and our position in the Association of American Universities,” he said.

“Our Board of Trustees leadership and our Government Relations team are actively engaged and staying in close communication with our elected officials about the issues that matter most to USF.”