Understanding the Stalled Campus Transfer Proposal

The recent failure of a legislative bill to transfer the University of South Florida Sarasota-Manatee (USFSM) campus facilities to New College of Florida (NCF) marks a significant moment in Florida's higher education landscape. This proposal, rooted in Governor Ron DeSantis's 2026-27 budget recommendations, sought to reallocate physical assets including 32 acres of land, 11 buildings, modern dormitories, and laboratories from USFSM to NCF. The plan would have required NCF to assume approximately $53 million in outstanding debt associated with the campus's new residence halls while redirecting $22.47 million in recurring state funding from the University of South Florida (USF) system to support NCF's expansion.

USFSM, established over 50 years ago, operates as a regional campus of the larger USF system, one of Florida's premier research universities classified as R1 by the Carnegie Foundation. In contrast, NCF is Florida's only public honors college, emphasizing a seminar-style liberal arts education with a contract-based thesis requirement for graduation. The campuses are geographically close in Sarasota County, but their academic missions diverge sharply: USFSM focuses on accessible undergraduate and graduate programs in practical fields like nursing, business administration, hospitality management, and education, serving around 1,300 to 2,200 students annually, many of whom are local commuters contributing to the regional economy in Sarasota and Manatee counties.

The transfer was pitched as an efficiency measure, arguing that USFSM's facilities were underutilized and better suited to fuel NCF's enrollment growth amid its recent institutional transformation. However, the bill's derailment in the Florida Senate highlights tensions over institutional autonomy, fiscal responsibility, and the distinct roles each campus plays in serving Florida's diverse higher education needs.

The Legislative Path: House Approval Meets Senate Resistance

House Bill 5601, sponsored by Representative Demi Busatta Cabrera (R-Coral Gables), advanced swiftly through the Florida House of Representatives. The Higher Education Budget Subcommittee approved it along party lines in mid-February 2026, followed by full House passage on February 19 by a 76-28 vote. The legislation mandated the asset transfer by July 1, 2026, with a deadline for debt assumption by October 30, ensuring current USFSM students could complete their degrees on-site under USF affiliation during a transitional 'teach-out' period.

Momentum shifted dramatically in the Senate. On March 2, 2026, Senator Gayle Harrell (R-Stuart), chair of the Senate Higher Education Appropriations Subcommittee, proposed a 'delete everything' amendment (Amendment 160978) during the Appropriations Committee meeting. This amendment stripped the bill of all substantive provisions, including the transfer language, effectively nullifying it. The committee reported the hollowed-out bill favorably, but with the legislative session concluding on March 13, 2026, no full Senate vote occurred. The action forced the issue into budget conference negotiations between the House ($113.6 billion proposal) and Senate ($115 billion proposal), where the $1.4 billion gap must be reconciled by July 1, 2026. Details of HB 5601 can be reviewed on the Florida Senate website.

• February 16: House Higher Education Budget Subcommittee advances bill.
• February 19: House full passage, 76-28.
• March 2-5: Senate Appropriations adopts delete-everything amendment.
• March 13: Session ends without resolution.

New College of Florida's Recent Overhaul and Expansion Ambitions

New College of Florida, founded in 1960, has undergone a profound transformation since early 2023. Governor DeSantis, criticizing it as a 'left-wing' institution with declining enrollment, appointed a conservative majority to its Board of Trustees, including figures like Christopher Rufo. The board ousted the progressive president, hired Richard Corcoran—a former Florida House Speaker and Education Commissioner—as president, and pivoted toward a classical liberal arts model inspired by Hillsdale College. Changes included adding NCAA Division III athletics, a mascot (the 'Mighty Banyans'), and stricter academic standards.

Enrollment hovered around 800 students in fall 2024, below capacity, with per-student spending reaching $83,207 in FY2024—the highest among Florida's 12 public universities—and an administrator-to-student ratio of 33.3 per 100 students. Proponents of the transfer argued it would provide NCF with essential housing and facilities to double enrollment, aligning resources geographically. Trustee Lance Karp emphasized in an op-ed that USFSM's undercapacity operations made the move logical for state efficiency. However, a Florida Department of Government Efficiency audit flagged disproportionate administrative costs, which NCF officials contested as necessary for revitalization. .

USF Sarasota-Manatee's Vital Community Role

Opened in 1975, USFSM has become a cornerstone for workforce development in Southwest Florida. It enrolls over 1,300 undergraduates and graduates, supported by about 130 faculty members, offering 40+ programs tailored to local demands. Key offerings include Bachelor of Science in Nursing (critical amid healthcare shortages), hospitality and tourism management (vital for Sarasota's $3 billion industry), and education degrees feeding Manatee County's schools.

The campus boasts modern infrastructure, including the 100,000-square-foot Atala Hall dormitory opened in 2024 and state-of-the-art labs. Local stakeholders, including the Manatee Chamber of Commerce, hail it as a 'talent pipeline,' warning that disruption could cost jobs, reduce degree access, and harm businesses reliant on its graduates. Over 300 alumni, students, and residents rallied at a 'Save USFSM' event in late February 2026, underscoring its 50-year legacy.

Key Stakeholder Perspectives and Vocal Opposition

Opposition was fierce and multifaceted. USF Board Chair Will Weatherford warned that losing $22.5 million would jeopardize student teach-outs and staff salaries across the USF system. Faculty senates at all USF campuses passed resolutions against it, citing threats to academic programs. U.S. Rep. Vern Buchanan (R-Sarasota) penned an op-ed stating both institutions 'should remain independent, viable entities' due to mismatched missions. Inside Higher Ed reported hundreds of community testimonials emphasizing economic ripple effects.

Supporters, including NCF leadership, framed it as pragmatic resource alignment. House sponsor Busatta Cabrera highlighted geographic synergy and NCF's growth potential during subcommittee debates.

Financial Ramifications and Debt Burden Questions

The $53 million debt stems from recent dorm construction, including Atala Hall, funded via state bonds. NCF's assumption would strain its budget, already scrutinized for high costs. The funding shift—$22.47 million recurring—represented a direct reallocation from USF, prompting Senate resistance over broader higher ed priorities like Title IX compliance and capital outlay. Critics questioned long-term viability, noting NCF's admin bloat versus USF's integrated efficiencies.

Potential Impacts on Students, Faculty, and Local Economy

For students, uncertainty loomed: while protected during teach-outs, program continuity (e.g., nursing) and services like advising could suffer. Faculty worried about job security and research disruptions. Locally, Sarasota-Manatee's economy—tourism, healthcare, education—relies on USFSM grads; the Chamber estimated program cuts could exacerbate workforce shortages. Rallies drew 300+, with 135+ public comments to lawmakers.

• Students: Degree completion assured short-term, but future access risks.
• Faculty: ~130 positions at stake amid integration fears.
• Economy: Loss of pipeline for key sectors like hospitality (employs 20% local workforce).

Political Dynamics Shaping Florida Higher Education

This saga reflects DeSantis's aggressive higher ed reforms, from NCF's 2023 takeover to statewide DEI bans and tenure tweaks. The Senate's pushback, from Harrell and President Ben Albritton, signals GOP internal divides on top-down consolidations. As Florida's 12 public universities navigate enrollment declines (down 5% statewide post-COVID), debates intensify over access versus elite models. Florida Politics detailed the chamber rift.

Future Outlook: Revival in Special Session?

The plan isn't buried. A special session reconvenes mid-April 2026, with budget deadlines looming. DeSantis's inclusion in his original proposal keeps pressure on; NCF deferred comments pending developments. If revived via provisos or new legislation, negotiations could address debt relief or phased integration. Absent action, USFSM persists independently, while NCF pursues alternative expansions per its 2025 Campus Master Plan update.

Lessons for Higher Education Resource Allocation Nationwide

This episode underscores challenges in campus consolidations: balancing growth ambitions with mission fidelity, fiscal prudence, and community input. As states grapple with declining enrollments (national drop 15% since 2010) and political interventions, Florida's case offers insights. Solutions like joint-use agreements or performance-based funding could emerge, prioritizing student outcomes over political optics. For educators and administrators, it highlights advocacy's role in preserving regional access amid elite expansions. WUSF covered early House debates, revealing stakeholder strategies.

Photo by Tessa Edmiston on Unsplash