Florida Budget Standoff Over $22.47M USF-New College Transfer Heads to Top Negotiators

A $22.47 million dispute over who pays for Gov. Ron DeSantis' plan to hand a University of South Florida campus to New College of Florida remained unresolved as Florida's special budget session entered its final stretch — with the fight now landing on the desks of the Legislature's two top budget negotiators.

The House wants to pull $22.47 million from USF Sarasota-Manatee and redirect it to New College as part of DeSantis' proposal to transfer the campus's buildings and facilities to the small Sarasota liberal arts school. The Senate has refused, leaving that line blank in both of its counter-offers. With neither chamber yielding after trading second offers, the dispute was bumped Friday to budget chiefs Sen. Ed Hooper and Rep. Lawrence McClure to reconcile before lawmakers return to Tallahassee after Memorial Day.

The divide matters far beyond Sarasota. Treasure Coast students who transfer from Indian River State College or St. Lucie County's public schools to USF campuses could face uncertainty if the funding fight delays or disrupts operations tied to the transfer agreement. A state government shutdown — triggered if no budget clears by July 1 — would ripple through every county agency, school district and public health program in Martin, St. Lucie and Indian River counties.

DeSantis first pitched the campus transfer in December, framing it as an expansion of New College's footprint without an accompanying funding shift. The House added the $22.47 million transfer on its own, drawing immediate opposition from USF leadership. Former USF Board of Trustees Chair Will Weatherford was direct about the stakes. "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," Weatherford said in a complaint filed in the official record in February.

Under DeSantis' original framework, the property transfer would take effect by July 1, with New College assuming full legal and financial liability for outstanding campus debt by Oct. 30, 2026, and making $166,617 in monthly payments to USF for debt service in the interim. Existing USF Sarasota-Manatee students would have up to four years to complete their degrees on campus.

Sources close to the negotiations had expressed confidence earlier this year that the House would ultimately align with the Senate's position against the funding transfer. But the House's first offer, filed at the same $22.47 million level as originally proposed, cast doubt on that assumption.

The special session is scheduled to end May 29. Florida's constitution requires a balanced budget passed by July 1; a failure to meet that deadline would trigger a partial government shutdown, a scenario that has never occurred in state history. Hooper and McClure must bridge the gap before lawmakers reconvene to cast final votes.

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