On the one week anniversary of being named athletic director, David Matlin’s job just got tougher as the University of Hawaii Regents were told Wednesday it is unlikely the Legislature will grant any of the $3.5 million being sought to help bail out athletics this session.
UH President David Lassner had asked for the money to help the athletic department address its latest budget shortfall.
But Kalbert K. Young, UH Vice President for Budget and Finance/CFO, told the Regents’ Committee on Intercollegiate Athletics, "the House and Senate (budget) version does not include any specific funding directed for athletics although that was part of the ask."
"How much of a setback is it? It is a $3.5 million setback," said Jeff Portnoy, committee chairman. "It was what the regents and the administration collectively thought was an appropriate way to try and improve the financial situation. So, now, it is on to Plan ‘B, C, D, E, F or G.’"
Asked what those might be, Portnoy said, "I don’t know. That is going to be up to David. David is going to have to come up with a plan."
Matlin officially takes over the $32 million, 21-team department April 27 and while officials said UH is resigned to the shortfall for the current fiscal year that ends June 30, Matlin will be expected to come up with additional funding ideas and draw up a budget addressing the realities of the situation for the upcoming fiscal year.
Portnoy said, "We tried something (asking the Legislature), now we have to look at are we willing to (continue to) run a deficit as some schools do, or are we not willing to do that and, therefore, expenses have to be cut to match revenues?"
Fewer than 30 of the nearly 350 schools that compete on the NCAA Division I level balance their books, studies have shown.
Outgoing athletic director Ben Jay told the regents UH’s state and institutional funding runs well below that of most of the schools it competes against in the Mountain West and Big West Conferences.
Regent Chuck Gee said, "What is the right number (for support of athletics at UH)? I don’t know that it has been answered."
Gee noted that former Chancellor Tom Apple forgave a decade-long $14.7 million net accumulated deficit in 2013 with what he termed, "creative accounting."
Portnoy said, "I don’t think we’re going to expect the administration to do what you called ‘creative accounting.’"