JD says the budget deficit is worse that he thought

HA Note: “University of Hawai’i athletic director Jim Donovan began his first day on the job yesterday with the sobering realization that the financial situation “is a little worse than I thought it would be.”

JD spent his weekend looking at balance sheets and said he was dismayed to discover:
“with just three months left (in the current fiscal year), it doesn’t look like we’re on an even keel. There’s an (overall operating) deficit, which everybody knew about, but I’m still working to figure out exactly what it is. It is somewhere between $4 million and $6 million.” (HA)

HA Note: “Donovan said the current fiscal year, which closes June 30, would add to the deficit if not for the expected Sugar Bowl receipts that will have to be used to balance the books for the year. UH had hoped to use much of the Sugar Bowl proceeds to help make a dent in the $4.2 million net operating deficit auditors said the department carried into the current fiscal year.”

About the Sugar Bowl money, JD said:
“We’re also looking at the on-going budget for this (fiscal) year. The Sugar Bowl funds will be a nice shot in the arm (but) the reality is it looks like there is an operating deficit if we didn’t have those funds.” (HA)

HA Note: “UH is expected to receive at least $4 million from its share of the Bowl Championship Series appearance money and may realize $2 million to $2.5 million after expenses. UH is responsible for its travel, hotel, meals and other bowl expenses.”

JD said that hte amount of deficit he inherits will be determined:
“after I meet with the Manoa chancellor, the chief financial people and some of our own (athletic department) people. I’ll be able to put an exact figure on it. Until then, I’d rather not name a (precise) figure.” (HA)

Asked if he eventually could put the budget back on solid footing, JD said:
“We have to. That’s the way I look at it. It is gonna take some time for those issues. It (the deficit) didn’t get here overnight and it is not going to be fixed overnight, either.” (HA)


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