Lawmakers add amendments to university merger bill

Legislation that would merge Florida Polytechnic University and New College of Florida into the University of Florida is set for a Friday floor vote in the House.

The bill (HB 7087), sponsored by Higher Education Appropriations Subcommittee Chair Randy Fine, picked up three amendments Wednesday, two by Democrats and one by the bill sponsor. Florida TaxWatch recently released briefing documents that question claims the consolidation will save money.

Fine’s amendment changes the bill from a merger to an acquisition. He says that it’s a technical change so it doesn’t affect UF’s accreditation. He said in discussions with the school and with the Board of Governors, he learned that if it continued as a merger, UF would have to get reaccredited. 

Fine, along with House Speaker José Oliva and Senate President Bill Galvano, have argued the merger would save the state money. Florida TaxWatch has advised the Legislature to “pump the breaks” on the bill. It also doesn’t mince words, saying not only is it “bad civics” to develop it in secret, but the “optics are also bad” because introducing it mid-Session makes it look like “the fix is in for Florida Poly and New College.”

Florida TaxWatch notes the House staff analysis suggests that reducing Florida Poly’s and New College’s administrative costs to a level more comparable to UF’s reported 9.8 percent rate would make available an additional $5.6 million at New College and an additional $6.9 million at Florida Poly that could be used for instruction or other expenditures.

But it says that’s less than three-tenths of one percent of the combined operating budgets for the 12 institutions in the state university system. It goes further, saying because both schools are so unique, it’s not clear UF can operate those universities at a reduced cost. It also adds that reducing the administrative costs for Florida Poly and New College may be more harmful than beneficial.

Florida TaxWatch says comparing Florida Poly’s average cost per degree to UF’s average cost per degree represents an “apples to oranges” comparison. And it’s unclear why the Legislature isn’t considering a merger between Florida State University and Florida A&M University, both located in Tallahassee. The group argues FAMU’s average cost per degree, $63,401, is significantly higher than the other eight SUS colleges and universities, including FSU’s at $36,857. FAMU has the second-highest percentage of administrative costs among the 12 universities.

Oliva says he has not read the analysis, but he still believes the consolidation will save money.

Rep. Carlos Guillermo Smith’s amendment appears to be trying to make a point about cost with a bit of humor. It calls for New College and Florida Poly to merge into the University of Central Florida. Smith says if the sponsor and speaker actually support a merger because of cost, his amendment actually makes more sense.

UCF’s cost per degree is $20,720, below UF’s cost per degree and UCF is geographically closer to both schools. Smith calls the whole plan absurd.

“No one knows why we’re doing this,” he said. “The university that these institutions are merging into has changed at every committee stop, so I figured, why not add UCF into the mix?”

Smith says he actually doesn’t want New College or Florida Poly merged into any other institution. He says the majority party has created this chaos. 

Smith added that he didn’t consult with UCF in drafting his amendment, just like he says the proponents of HB 7087 didn’t consult with the universities involved before filing the legislation. 

“They dropped this like a bomb on everyone else, so I figured why not join the party,” he said,   

Democratic Rep. Margaret Good, whose district includes New College, has filed an amendment that calls for the Office of Program Policy Analysis and Government Accountability to do a study on the need for a merger and the impact of a merger on students by January 1, 2021.

Based on the results, the universities would have to submit an implementation plan to the Governor, House Speaker, Senate President and Board of Governors.