The University of Hawai'i is projecting a $350,000 shortfall in the funds it uses to help underwrite room, board and books for scholarship athletes at Manoa, officials said.

Because of the plummeting stock market, where much of the funds had initially been invested, UH says it expects to receive $3 million from Koa Anuenue, its umbrella booster organization, instead of the $3.35 million it had originally budgeted.

The $350,000 hit, plus an anticipated $125,000 drop in what athletics expects to receive from its share of the Honolulu Stadium endowment, administered by the UH Foundation, contribute to what officials say could be an overall $3 million department deficit for the fiscal year that closes June 30.

"We're like anybody else (in a falling market)," said Vince Baldemore, president of Koa Anuenue.

The money will be made up from other university sources, officials said. Athletics pays a fee for the money it essentially "borrows" to balance its books at year's end. UH has approximately 470 athletes, 297 of whom receive some aid.

Koa Anuenue, which has about 6,000 members, generates support for athletics through the sales of premium seating at events, ticket packages and parking. The money is invested and then turned over to the athletic department. Koa Anuenue, which has provided more than $30 million to athletics since its inception, "does an awesome job and has been doing it for many years," said Carl Clapp, UH associate athletic director.

When the stock market began to tumble last year, Koa Anuenue's investments were, "basically put into cash" to minimize the hit, Clapp said.

Even with a 10 percent drop, Koa Anuenue has done better than many. The UH Foundation has reported a dip of more than 20 percent in its endowments through the end of 2008 and, on average, university endowment funds lost 23 percent between July 2008 and November 2008, according to reports citing the National Association of College and University Business Officers.