Students at the University of Hawai'i-Manoa may have fewer courses and degree programs to choose from as campus officials anticipate some $50 million in budget cuts per year over the next two years.

With an annual budget of about $386 million, UH-Manoa officials say it's unlikely they can absorb the cuts without affecting the academic offerings at the flagship campus.

"Given where we are now with the budget process, clearly there will be a lot more emphasis on looking at programs we should consider as candidates for eliminating or reducing or consolidating," said Gregg Takayama, UH-Manoa spokesman.

As a whole, UH's 10-campus system faces trimming about $74 million from its annual $470 million budget per year for the next two years based on Gov. Linda Lingle's latest spending plan, announced Monday, and the budget adopted by the Legislature.

The budget cuts come at time when all of the university's campuses are experiencing record enrollment. Fall enrollment for the UH system reached an all-time high at 53,526 in 2008-09.

The Legislature cut the UH budget by roughly $24 million a year for fiscal year 2010 and 2011, and UH officials predict they'll have to take an additional $50 million in cuts a year under Lingle's plan to furlough state workers and cut education budgets.

In a statement to the university, UH President David McClain said yesterday officials are exploring various scenarios to deal with the cuts.

"As we monitor ongoing developments, my leadership team and I are working to craft an appropriate response for the university," McClain said.

"In this process we will be in discussion with our Board of Regents, campus chancellors and other constituencies within and external to the university, including, of course, the unions who represent our employees," he said.

UNEXPECTED CUT

Over the past year, the UH system has instituted some $8 million in budget restrictions because of the declining tax revenue projections, said Howard Todo, UH's chief financial officer.

"We've had to look at not filling vacant positions, restricting travel, not purchasing equipment," Todo said.

Todo said the latest budget restrictions come as a shock and will be difficult to plan for.

"At the level that the Legislature had cut, we had planned for that. We started that planning from September of last year and we were prepared for that. This additional reduction in excess of $50 million is certainly a major challenge for us," Todo said.

The governor said she intends to restrict UH and Department of Education general funds expenditures in an amount equivalent to the three-day-per-month furlough she announced for other state employees. State law doesn't allow the governor to furlough UH and DOE workers, so she said she will restrict their budgets and encourage them to furlough workers.

But like officials at the state Department of Education, UH officials say it's unlikely they can take all of their cuts in worker furloughs. Instead, the reductions will likely be a combination of cost-saving measures.

"Ultimately it could be reductions in the offerings of classes. That's certainly not something we'd like to go to, but when you're looking at this level of reductions it can't be discounted," Todo said.

Todo noted that all 10 of UH's campuses are experiencing record enrollment.

"Our challenge is that we have many new students, and we need to service all of them," he said.

Takayama said that program and course reductions are almost certain for the Manoa campus, which will experience cuts of $50 million a year for the next two years.

"That's where a substantial part of our money goes," Takayama said.

"Are our students going to be affected by fewer classes? Yes. Are they going to be affected by larger classes? Of course. That's the natural result if you reduce the number of course offerings."

And while there may not be any concrete plans to lay off employees, Takayama said cost savings could come by not renewing certain employment contracts for adjunct instructors, nontenured faculty and administrative personnel.