UH could score $6M from HTA budget

Some of the money that had been expected to fund the Pro Bowl would now go to University of Hawaii athletic programs under a surprise amendment attached to a bill in the state Legislature on Wednesday.

The $6 million turn of events stunned even UH athletic director David Matlin as he stood before a joint hearing by the Senate committees on Higher Education and Economic Development, Tourism and Technology.

“Mr. Matlin, you want $3 million (a year), right?” EDTT chairman Glenn Wakai asked.

“Yes!” Matlin responded enthusiastically.

The money, senators said, would be divided between UH Manoa and UH Hilo over the next two years to help underwrite travel costs.

Senate Bill 1252, which was unanimously forwarded with the amendment, originally had no dollar figure attached and did not call for the funds to be taken from a Hawaii Tourism Authority appropriation.

But after questioning Matlin and Hilo AD Patrick Guillen, hearing from UH coaches and track athlete Charlinda Ioane, senators agreed to tap the HTA’s appropriation of Transient Accommodation Tax funds, also known as the hotel room tax.

A bill last session to pass some of HTA’s appropriation to UH died.

“Where are we going to get the proposed $3 million?” said Wakai (D, Kalihi, Salt Lake) on Wednesday. “It is the chair’s recommendation that we take it out of the HTA’s $82 million marketing budget because, right now, they have no use for the $5.17 million (annually) for the Pro Bowl. The Pro Bowl is not going to be here the next two years, so my proposal is to fund UH’s (request) at $3 million for the next two years.”

After holding the Pro Bowl at Aloha Stadium for all but two games since 1980, the NFL moved the all-star game to Orlando, Fla., this year and is contracted to keep it there for the next two years.

After learning of the amendment, George D. Szigeti, Hawaii Tourism Authority president and CEO, said in a statement, “Taking funds away from HTA to market Hawaii will hurt tourism, the state’s No. 1 industry and the leading provider of jobs. If this bill passes, we will be forced to reassess our financial support of community programs and our global marketing of Hawaii. This also comes at a time when DBEDT is forecasting that tourism arrivals could decrease in 2017.”

Szigeti said, “Justifying these cuts by allocating monies previously used to sponsor the Pro Bowl is misguided. HTA has already earmarked those funds to bolster its marketing in the U.S. Mainland and Japan, Hawaii’s two largest markets. The remainder is being used to support new sports opportunities, community programs, and promoting Hawaii in emerging Asia markets. If this bill passes and the money is instead given to UH athletics, we will have to undo these efforts to support Hawaii tourism.”

Asked about where the money would come from, Matlin said he was “agnostic” about the source.

UH received a $3 million appropriation last year — $2.7 million for Manoa and $300,000 for Hilo — and officials from both schools said an appropriation this session was necessary to help “level the playing field” for their teams against mainland peers who do not face the same travel costs.

Matlin said Manoa faces $5.4 million in costs “unique” to the school due to its geography. Guillen said the Vulcans operate on $2.1 million less than the overall median for Division II non-football programs. Both cited studies showing that they contribute to tourism that brings opposing teams and fans to the state.

The only testimony against the bill came from the Tax Foundation of Hawaii, which said the measure, “Would add another siphon of TAT revenues and would perpetuate the earmarking of TAT revenues.”