Battered by what he termed "one of the toughest economies we've ever faced as an athletic department," University of Hawai'i athletic director Jim Donovan said he expects to report a $2.58 million deficit for the fiscal year that closes today.

Based upon unaudited figures through May 31, Donovan said UH forecasts spending of $28.34 million on the 19-team program and revenue of $25.75 million

The deficit will add to what independent auditors said earlier this year was $5.4 million in debt accumulated over the previous five years.

UH had a $300,000 surplus for the fiscal year ending June 30, 2008, thanks to the football team's appearance in the Jan. 1, 2008, Sugar Bowl. It was the school's most prosperous finish in seven years and helped pare down the accumulated debt from $5.7 million.

Earlier projections for the current fiscal year had been for as much as a $3.2 million loss, but Donovan said cutbacks, leaving some vacant positions unfilled and a slight upturn in baseball revenues helped reduce the deficit.

Donovan said the baseball team produced an "estimated $100,000 more in total ticket and concession revenue" over the previous year.

The athletic department self generates approximately 82 percent of its operating funds, mainly through ticket sales, television rights and sponsorships. Assistance from the school's general fund is used to fund upkeep of lower campus facilities and tuition support.

Donovan has told the Board of Regents he aims to have the upcoming fiscal year deficit "under $2 million" and get to a break-even point in the 2011 fiscal year. Breaking even in fiscal year 2011 "is realistic, at this point," Donovan reiterated yesterday.

Manoa Chancellor Virginia S. Hinshaw said, "Jim Donovan has my full support for leading our UH sports program. Jim and our athletics program need the community's support as well."

Hinshaw said: "Some of the factors in the department shortfall are beyond his control — football attendance was dampened by rain at several home games; high travel costs; and turnout at all events has been hurt by the economic downturn. Jim has exciting plans for boosting fan support during our upcoming 100th athletics anniversary, expanding donations and private partnerships, and better connecting UH sports to our community. I hope everyone will join me in supporting UH athletics and Jim."

Donovan has implemented new, more fan-friendly ticket and concession plans at campus venues. In addition, he has asked the Aloha Stadium Authority to consider a program whereby UH receives a rebate on stadium fees when football attendance hits target levels. He is also seeking the implementation of student fees.

REVENUE DOWN

In a tightening economy, UH's three money-producing sports — football, men's basketball and women's volleyball — showed a combined $1.3 million drop in ticket revenue from the previous year, according to UH.

Football, which went from 12-1 to 7-7, was down $1.2 million at the box office while men's basketball was down $55,701 and Rainbow Wahine volleyball was off $55,000.

In addition, men's volleyball, once a money maker, was expected to lose $275,000 and women's basketball, coming off the most losses in the school's history (8-23) took in just $19,529 in ticket sales, a more than 30 percent drop, UH said.

Donovan said cutting a sport is not envisioned "at this time" and would come only "as a last-resort."

Meanwhile, the athletic department awaits a determination by the regents whether it will be compelled to furlough or lay off staff as part of impending state cuts.