UH will cover $1 million athletic deficit

By Ferd Lewis
Advertiser Staff Writer

For the first time in the University of Hawai'i's Division I-A sports history, the university administration will step in to cover a projected athletic department deficit, though it is unsure where the approximately $1 million or more will come from.

"Of course, we're not going to hang athletics out to dry," Peter Englert, UH-Manoa chancellor, said in a written statement. "We will cover the department's requirements. But we're not sure exactly where the dollars will come from right now because we're also trying to deal with the governor's mandated cuts that take more than $4 million out of our budget for this year."

Gov. Linda Lingle has ordered a 5 percent across-the-board cut in spending by all state agencies.

UH athletic director Herman Frazier said he projects a deficit of approximately $1 million for the fiscal year that ends June 30.

UH is running its 19-sport program on what officials call an "unbalanced" budget of approximately $17 million.

Englert said, "It looks like this year's shortfall will not be as large as last year's $1.5 million, so that's an improvement."

It will be the third time in 10 years that the athletic department has run a deficit, but the first time the administration has had to underwrite funds to cover the shortfall.

UH incurred a $1.3 million deficit following the 0-12 football season of 1998 and last year had a $1.5 million shortfall blamed on the effects of Sept. 11. Both times the athletic department was able to use money from its own reserve account to balance the budget.

The so-called "rainy day fund" was mandated by the legislature and was accumulated from years in which there was an athletic department surplus.

But in retiring last year's $1.5 million deficit, the reserve fund balance dropped to less than $50,000.

Englert said, "Much of the deficit in athletics this year is due to factors that were beyond Herman's control, and he's dealing with them."

Some contracts, including the television rights fees and football pay-per-view agreement, and several substantial pay raises for coaches and administrators were negotiated before Frazier was named athletic director June 22, 2002. Frazier began work on Aug. 1.

Frazier said when he arrived the athletic department was looking at projections of $18 million in expenditures, which he said he has significantly pared back.

Englert said, "I have every confidence that athletics will thrive under Herman's leadership, that our fans will support us, and that we'll be back to building a surplus for the program over the next two or three years."