The House Finance Committee cut about $72 million this week from the University of Hawaii’s budget request for the upcoming fiscal year.
The House draft of the state budget includes a little more than $369 million in general funds for the 10-campus system, a 16 percent decrease from the approximately $441 million the university had wanted. It was also less than the $427.5 million Gov. David Ige proposed in his executive budget, which lawmakers used as a starting point.
The Finance Committee also changed the way funds would be allocated to the university, electing to give UH a lump sum.
In previous years, the Legislature would divvy up the university’s budget among the four-year campuses, the medical school, community colleges and systemwide support costs.
House Finance Chairwoman Sylvia Luke said the consolidation will allow UH to determine the needs of each campus and provide "a truer form of autonomy."
"While this is a drastic change from the past, we will be working with the university to see if this provides better flexibility, as well as accountability, to work through its fiscal issues more effectively," Luke said in a news release Wednesday.
UH President David Lassner welcomed the lump-sum approach but cautioned Thursday that the reduced level of public funding for the university could hurt operations.
"The University of Hawaii appreciates this approach to provide us with greater flexibility and authority over our overall institutional budget," he said in a statement. "As much, we appreciate the expression of confidence in our ability to manage greater flexibility with accountability and transparency."
But he added, "We will continue to advocate for the funding requested in the Board of Regents budget request, which will enable us to continue to provide affordable, comprehensive, high-quality public education on all islands."
It’s not clear at this stage of budget negotiations what expenses were cut from the university’s request.
UH had asked for about $24 million in additional funds to cover increased electricity costs across the system, which the university says have risen despite energy efficiency and conservation efforts.
An additional $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.
UH also asked for $1.14 million to ensure compliance with federal mandates under Title IX, which bars discrimination based on sex in programs receiving federal funding, and the Violence Against Women Act.
Lassner has said the university drafted a budget that assumes no tuition increases, although a 7 percent hike approved in 2011 is scheduled to take effect in the fall. UH officials have said any decision to adjust tuition up or down won’t happen until after the Legislature finalizes the budget in May.
The university in the last fiscal year collected $362 million in tuition and fees systemwide, up from $349 million the year before, representing nearly 42 percent of total operating revenues.