The Florida State University System Board of Governors raised concerns Thursday about the reliability of the Federal Emergency Management Agency (FEMA) in reimbursing hurricane-related damages, while also questioning New College of Florida’s financial preparedness after the institution used reserve funds for storm repairs.

Board members cited past delays in FEMA reimbursements, expressing skepticism about its efficiency. New College, which sustained large-scale damage from Hurricanes Milton and Helene last fall, used $2.5 million of its 7 percent reserve balance for emergency repairs while awaiting federal reimbursement. The expenditure left the institution below the statutory financial threshold, requiring board approval of a plan to restore reserves.

“For those of us with prior experience dealing with FEMA, they’re not typically very timely in their reimbursements,” said Board Chairman Alan Levine. “Hopefully that will change, but I wish you luck navigating their process. It’s quite an experience.”

Several board members, including Eric Silagy, questioned the prudence of relying on FEMA, warning that delays could leave the institution financially vulnerable with another hurricane season approaching. Silagy noted that some entities have waited since 2020 for payments and argued that using reserve funds for storm repairs is unsustainable given Florida’s hurricane risk.

“I think it’s a bad policy to use [reserve funds] for this with the expectation of reimbursement within a year because I don’t think that’s realistic,” Silagy said. “I would be pleasantly shocked if you get it in two years, much less a year. Universities relying on these funds for foreseeable storm damage is concerning. In Florida, it’s reasonable to assume storms will occur over a five-year period.”

New College President Richard Corcoran acknowledged the concerns but expressed confidence that the claims would be processed in a reasonable timeframe.

“Our hope is to submit all documentation to FEMA and insurance and resolve the issue by fiscal year’s end,” he said.

Discussion also turned to New College’s $50 million foundation endowment, with some board members echoing Silagy’s concerns that it could serve as a backup funding source if FEMA reimbursement is delayed. Others, including Mori Hosseini, warned that much of the endowment may be restricted for specific purposes and unavailable for operational expenses.

“The majority of that money is probably restricted,” one board member noted. “At the University of Florida, 90 percent of our money is restricted—we can’t just use it freely.”

The board ultimately approved New College’s financial plan with conditions, requiring that if FEMA and insurance reimbursements do not arrive within 18 months, the university must present an alternative plan to restore its reserves. The board acknowledged that New College’s situation could set a negative precedent for other universities facing hurricane-related expenses and called for stronger financial contingency planning to reduce reliance on federal relief.

“This isn’t just going to be a New College issue,” Levine said. “It’s going to be an issue for any university that experiences a storm.”