Florida's 11 public universities have been buying and installing new financial systems, and training staff members to use them, thanks to a new state law that permits the universities to have their own financial-accounting systems and write their own payroll checks.

Previously, all 11 public universities were considered state agencies and were required to rely on the state's data-processing systems for their financial transactions. July 1 marked the first time that the universities could use their own financial-accounting systems and cut their own checks.

A spokeswoman in the state education department did not know how much the universities have allocated to pay for new financial systems, but the University of Florida expects to spend about $25-million above and beyond what it would normally spend. The money will pay for software licenses, software consultants, and salaries for additional personnel to relieve current staff members so that they can work on the financial-systems project.

Florida A&M University has spent $8.8-million already and has budgeted $18.8-million more to complete the systems project. The state Legislature did not appropriate any additional money to help universities pay for the new systems.

The University of Florida and some of the other large public universities will wait until July 1, 2004, to switch on their new financial systems, because doing so will be a major undertaking for them. But five institutions, including Florida Gulf Coast University, made the switchover this month.

The change came about because of a Florida law passed two years ago. The law freed the universities from state control and created a more flexible system of governance by institutional boards of trustees.

For years, Florida's public universities had sought local control of their financial systems, says John E. Poppell, vice president of finance and administration at the University of Florida. "Then, all of a sudden, it just happened."

Now the universities have "the flexibility to budget over a number of years and not be so subject to the constraints of the annual budget process in Florida," says Duncan McBride, associate vice president of administrative services for Florida Gulf Coast.

Florida was among the last states in which the payroll and accounting systems of its public universities were still "essentially wrapped up" in the state government's system, says Damon Manetta, manager of external affairs for the National Association of College and University Business Officers.

For Florida Gulf Coast, the transition to new accounting systems has been a relatively easy one. The University of Florida, on the other hand, anticipates a bumpy ride.

The University of Florida elected to wait until next year to make the actual changeover to its new financial software, from PeopleSoft Inc., because it needs time to prepare for the change. Since the law was passed giving institutions fiscal autonomy, the university has licensed every piece of software that PeopleSoft makes for higher education -- "everything but the Brazilian payroll," as Mr. Poppell puts it.

Despite a sharply curtailed budget, the university found the money needed to pay for the conversion, "but it came with sacrifices," he says.

Florida Gulf Coast had a comparatively easy transition to make, Mr. McBride says. Since 1997, the university had been using the SCT Corporation's Banner software for managing its student records and financial aid. So it bought two additional components of the Banner system to handle the university's new finance and payroll responsibilities.

The institution, which opened its doors in 1997, is one of the newest universities in the state. It could easily set up its business practices and work flow to match those in the SCT Banner software, Mr. McBride says. "We were very fortunate."

For the larger and older University of Florida, the transition to PeopleSoft software will be harder, Mr. Poppell says, because the new systems will require staff members to adopt so many new practices. What will have to change by July 1, 2004, is "the business culture of the university," he adds, "and that's going to be difficult."