Posted on: Saturday, September 11, 2004
Regents OK $715M budget proposal
By Jan TenBruggencate
Advertiser Kaua'i Bureau
PUHI, Kaua'i — The University of Hawai'i Board of Regents yesterday approved a $715 million operating budget proposal for the two-year period ending in mid-2007, an amount substantially less than what it asked for two years ago.
The request this year compares to a request of about $840 million for the biennium budget two years ago that ended up being pruned severely.
The new operating budget proposal breaks down to $364 million for fiscal year 2006 and $351 million for fiscal year 2007.
The budget will now go to Gov. Linda Lingle to ultimately be folded into the administration's budget recommendations to the 2005 Legislature.
As part of their regular monthly meeting, the regents also approved a $305 million two-year capital-improvements budget. Building priorities include at least $3 million in funding for repairs of the cottages used for research and offices at Lyon Arboretum, improvements to dormitories at UH-Manoa and construction of a building for Hawaiian language at UH-Hilo.
In another financial matter, the regents heard a recommendation from accounting professor Shirley Daniel that the university establish a new position of chief financial officer.
She said that a review of the university's accounting needs and discussions with officials of similarly sized university systems across the country led to the conclusion that the organization needs a beefed-up financial presence at the top.
Some board members seemed to agree.
"The board ... has not had the kind of financial information that we need to do our job properly," regent Kitty Lagareta said.
University acting president David McClain said he is preparing for the board a recommendation for the reorganization of the school's top-level management, which could include the elimination of at least two vacant vice-president slots. He said he is not yet sure whether a chief financial officer, if the position is approved, would serve as a full vice president or would report to a university vice president.
McClain said he hopes to present his reorganization plan to the regents in October, and if it is approved, he would launch a search for a financial officer in November.
"We could have someone in place March 1," he said.
Staff writer Beverly Creamer contributed to this report. Reach Jan TenBruggencate at jant@honoluluadvertiser.com or (808) 245-3074.
