Athletics targets 5 percent budget cut to curb deficit

The University of Hawaii athletic department says it is targeting a 5 percent cut on operational budget line items in an attempt to help rein in its projected deficit for the current fiscal year.

The 5 percent reduction does not include salaries, benefits or "areas impacting our student-athletes," said athletic director Ben Jay, adding the actual amount was still being figured.

Even with the reductions, Jay told the Board of Regents Committee on Intercollegiate Athletics that the 21-team department envisions a deficit of $1.48 million for the fiscal year that closes June 30, 2015.

Athletic finances came under increased scrutiny this week amid a storm of controversy as Jay asked school officials to help campaign for at least $3 million in additional state funds for the department and suggested that some sports, including football, could be cut. He later backtracked, saying he doesn’t contemplate dropping any sports.

The department has run at a deficit in 11 of the previous 13 years and closed the last fiscal year with a deficit of $2.14 million, according to unaudited figures.

Jay acknowledged that a projected $31.28 million revenue target is "very optimistic" and "ambitious" and, under questioning from regents Monday, conceded the deficit "could go to $2.5 million to $3 million."

For example, the current budget anticipates an 8.3 percent increase in football ticket revenue from the just-concluded fiscal year despite the fact that season-ticket sales were running about 2,200 below 2013 levels, 10 days before the Aug. 30 season opener.

Jay said the hope is that a strong start by the Rainbow Warriors against 25th-ranked Washington will win back "the wait-and-see fans."

In addition, both Rainbow Wahine volleyball and men’s basketball are being projected to hit or exceed $1 million in ticket revenue. The $1 million mark hasn’t been reached since 2008-09 when ticket revenue hit $1,056,356 under head basketball coach Bob Nash.

Athletics is also counting on an additional $955,707 to be raised by its booster organization, Ahahui Koa Anuenue, and another $500,000 from its drive with the UH Foundation.

The budget calls for a $109,434 trim in general administrative expenses but Jay said, "Many of our rising costs are not within our control."

He cited $250,000 in "new negotiated increases for our union employees."

Some coaches who have contracts up for extension have raises attached, including men’s basketball coach Gib Arnold, whose proposed raise is $21,000.

"Any increase to the university’s annual cost of tuition, housing and meal plans directly impacts our athletic grant-in-aid costs for students on scholarships," Jay said. "While the university does provide funding support for most of our scholarship costs, the department must pay the unfunded difference of approximately $700,000."