Posted on: Friday, October 10, 2003

Loan won't cover UH deficit

By Ferd Lewis
Advertiser Staff Writer

Even after a $1 million loan from the school, the University of Hawai'i-Manoa athletic department is projecting a $480,472 deficit for the last fiscal year, according to budget information released yesterday by the Manoa chancellor's office.

Based on unaudited figures, UH said it spent $18.1 million for the fiscal year that concluded June 30, approximately $1.3 million more than the previous year, which also involved a deficit.

Revenues fell $1.8 million short of projections in 2003, according to the report.

A statement released by the chancellor's office said, "This past year, through budget adjustments, additional fund-raising and assistance from the University, we have managed a projected deficit of $480,000."

Audited figures are expected to be released by the Board of Regents later in the year.

To help pay its bills for 2003, the department received an interest-free $1 million loan, which schools officials said must be repaid within three years, and drew upon other departmental accounts.

Expenditures do not include football coach June Jones' new $800,016 contract, which was retroactive to July 1, 2003, the beginning of fiscal year 2004. Jones received approximately $330,000 under the terms of his original contract in 2003.

Herman Frazier, who took over as UH athletic director Aug. 1, 2002, said the Manoa chancellor's office granted the $1 million loan last year based upon extenuating circumstances and new contracts.

UH is projecting an $18 million budget for the current fiscal year, and Frazier said he expects to have a balanced budget this year for the first time in three years. "That's our goal," Frazier said.

Frazier said he envisions a $20 million budget in the near future. "It could be within two years," said Frazier, who has targeted $20 million as a benchmark of what it will take to be competitive across the board in the 20 sports in which the school fields teams.

"We will continue to try and find new revenue sources while running a quality Division I program that can be competitive," UH said.

In fiscal year 2002, UH all but emptied its legislatively-mandated reserve fund to retire a $1.43 million deficit following the effects of Sept. 11 and a reorganization.

The athletic department has since established a four-member budget review committee.

Budget figures for 2003 were released under provisions of the Uniform Information Practices Act, Hawai'i's open record law.

Reach Ferd Lewis at flewis@honoluluadvertiser.com or 525-8044.