The University of Hawaii is asking the state for an additional $41 million in each of the next two fiscal years for operations, citing a looming budget gap come June when both federal stimulus money and furloughs end.

During its hearing before the Senate Ways and Means Committee on Wednesday, the 10-campus system also submitted an $88-million “wish list” that covers everything from expanding degree programs on the Big Island to reducing the university’s repair and maintenance backlog.

But when it came to questions about how UH Manoa would cover its athletic department’s $9.8 million deficit, university officials were short on answers.

UH’s budget for the current fiscal year ending June 30 was approved for $863 million. That included a $108 million reduction in general funds from the prior year, a 23 percent decrease, UH President M.R.C. Greenwood told lawmakers.

The university is requesting a $903 million budget for fiscal 2012 and $916.5 million in fiscal 2013. In both years, $402 million would come from the state’s general fund, making UH the fifth largest department in terms of state funding.

With reduced funds, Greenwood said UH has had to make big adjustments as its campuses are educating more students than ever.

“With an all鈥恡ime high enrollment exceeding 60,000 students in fall 2010, we are serving many more students with far fewer general funds,” she said. “We have managed this by various means throughout our campuses,” including faculty and staff wage cuts, teaching fewer classes, deferred hiring, closing campuses during breaks and deferring spending.

The additional $41 million UH has asked be “restored” to its state-funded budget in both fiscal 2012 and 2013 has two parts. To make up for furlough savings that end in June, the university needs $25 million per year as well as $15 million annually to make up for American Recovery and Reinvestment Act funds, which also expire in June.

“We understand the fiscal realities, and we really believe in these economic times that higher education is really critical to our future,” Greenwood told lawmakers. “We are one that provides a return on that investment, we bring money into the state.” She said UH is on track to bring in about $500 million this year in external contracts and research grants.

Members of the Ways and Means Committee had few questions for university officials, but Sen. Jill Tokuda, who also chairs the Education Committee, asked about the status of UH Manoa’s athletic department, which has borrowed more than $10 million from school funds since 2002. The athletic department is $9.8 million in the red.

“Looking forward, how much do you anticipate the athletic program costing and how much will it bring in?” Tokuda asked.

“We’re trying to work that deficit down. There’s some relief because the campus did pass a long overdue fee that wasn’t there before,” Greenwood replied.

UH Manoa Chancellor Virginia Hinshaw noted that 20 percent of the department’s administrative positions are empty to cut costs and ticket sales for football and basketball are increasing. But it will still take “at least two years to not have a deficit,” she said.

Tokuda asked to see a concrete solution on paper.

“So Manoa is just covering that balance, like a credit card that keeps tacking on?” she asked. “This is a real black eye … What’s the plan? While we would love to trust you and (Athletic Director) Jim (Donovan), I would like to see it on paper. That’s money you would otherwise be spending elsewhere.”

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