UH projects $2M loss
By Ferd Lewis
Advertiser Staff Writer
The University of Hawai'i athletic department is projecting a deficit of approximately $2 million when the current fiscal year ends in less than two months, which could mark an improvement of as much as $600,000 from the previous one.
But the shortfall remains in line with a February forecast to the Board of Regents predicting the accumulated net deficit will hit $10.1 million when the books close June 30, 2010.
UH had a $2.63 million deficit for the fiscal year that closed June 30, 2009. It was the seventh time in eight years a deficit has been recorded. Only the Sugar Bowl year of 2007 did not close in the red.
The accumulated net deficit, which has been building since 2002, was $8,051,123 as of June 30, 2009.
An independent auditor's report released in February concluded, "in the near term, during the next two or three fiscal years, it is probably not realistic for Manoa athletics to self-generate enough revenues at the current level of allocated revenues to produce a balanced budget."
Athletic director Jim Donovan said that, depending upon final receipts, expenses and end-of-the-year payments from the conference and NCAA, UH will come in "somewhere between $1.8 million and $2.2 million" in deficit for the current fiscal year.
All UH's income-generating sports except baseball have concluded their home seasons. Baseball wraps up its home campaign with a four-game (three date) series against New Mexico State beginning May 13.
UH said it has kept about 12.5 percent of its athletic department positions vacant to help save money and attempted to tap new revenue opportunities.
Donovan said the vacancies did not involve coaching positions or jobs directly related to the welfare of athletes.