The University of Hawaii will wait until after the legislative session to decide whether to raise tuition in the fall, officials told lawmakers Thursday.
UH President David Lassner said the university has drafted a budget that assumes no tuition increases, although a 7 percent hike — approved in 2011 — is scheduled to take effect in the fall.
"When we did our budget planning, we asked for an assumption that there wouldn’t be new tuition (revenue), and part of that was to impose a discipline … that we should hold to this zero-based approach so that any tuition increase that is approved would be tied to a specific expenditure plan," Lassner told members of the state House Higher Education Committee. "It wouldn’t just be the 7 percent goes through because it was approved and we need more money."
But the committee’s chairman, state Rep. Isaac Choy, said UH is using tuition increases as leverage against the Legislature.
"You’re going to wait to see how much we appropriate before pulling that trigger on tuition," Choy (D, Manoa-Moiliili) said. "So that’s going to be a policy call on our part."
UH is seeking an additional $35.5 million from the state for operations in the fiscal year that begins July 1. That would add to the $405.5 million in general funds lawmakers approved for UH in the state’s current two-year budget.
With all sources of funding included, UH is about a $1.2 billion operation.
The additional funds would mostly go toward increased electricity costs across the 10-campus system, which UH says have risen despite energy efficiency and conservation efforts. Although electricity rates are currently dropping, UH officials say they can’t predict oil prices and so are preparing for a conservative 5 percent increase.
Another $3 million would support the struggling athletics program at UH-Manoa next year, with $1.3 million of that to cover travel subsidies for mainland sports teams to play in Hawaii.
Choy’s committee scheduled an informational briefing Thursday to discuss UH’s budget request. The eight-hour hearing touched on everything from the school’s deferred maintenance backlog and alternative energy projects to the growing athletics deficit.
Robert Bley-Vroman, chancellor of the flagship Manoa campus, which wants an extra $16 million next year for utilities, said while energy conservation efforts have curbed usage, costs still have soared.
John Morton, vice president for community colleges, is facing the same problem at his seven campuses, where tuition dollars have been diverted to cover rising energy costs. The community colleges want $6.7 million for utilities to free up that tuition revenue for academics.
"Had those rate increases not happened, we wouldn’t be asking for a penny," Morton said.
UH officials also reiterated a plea for broader support for athletics, saying the university alone can’t cover the 21-team, $32 million program. (Athletics gets about $2 million a year in state general funds.)
The athletics program is expected to close out this fiscal year with a $3.5 million deficit as football ticket sales and fundraising totals have come in below targets.
"Our assessment is that it’s not possible right now for the university to continue to fund that deficit. … The current general fund budget is not adequate and the instructional and research programs can’t afford to be cut in order to make that up," Lassner said. "We’re looking for ideas and solutions collaboratively."
Bley-Vroman said the program likely needs increased support from the Legislature, philanthropy, and fans through tickets sales.
"We need to change our thinking a little," he said. "It’s a state and community function."
The university and other state departments have submitted their budget requests to the Governor’s Office for consideration in the executive budget that will be sent to the Legislature Monday. The Legislature, which convenes Jan. 22, will use that proposed budget as a starting point.