The
University of Hawaii's flagship Manoa campus is facing a
multimillion-dollar tuition shortfall for a fourth straight year
as state support continues to decline while energy and personnel costs
escalate.
Manoa officials are projecting a $31 million deficit for the fiscal year that ends June 30, despite efforts to curb spending.
Manoa officials are projecting a $31 million deficit for the fiscal year that ends June 30, despite efforts to curb spending.
Interim
Manoa Chancellor Robert Bley-Vroman, who took the reins Sept. 1, said he
is actively seeking ways to cut costs but cautioned that Manoa's
debt could keep growing as the campus re-evaluates its spending
priorities.
"Our goal
is to fly level for this year, and during this year try to reconnoiter
and figure out where we're going to go in the future," Bley-Vroman
told the Honolulu Star-Advertiser on Tuesday. "The university as a
whole needs to fly level. I think we can do it. I think it will be
tough, and we may see our bank balance decline even more for a while,
but we can do it."
The overspending began in 2012, when the campus incurred a $2.6 million deficit under then-Chancellor Virginia Hinshaw.
UH-Manoa
had started that year with a $21 million surplus in tuition revenue but
was instructed by UH system administration to spend down some of
its reserves for fear that the state might view the surplus as too
healthy, said Kathy Cutshaw, Manoa's vice chancellor for
administration, finance and operations. Tuition revenues were
subsequently spent on faculty salary restorations, student
laboratory space and information technology upgrades.
The
shortfall swelled to $17 million and then $26 million in the following
two years under then-Chancellor Tom Apple. Those shortfalls were
covered by university reserves.
Utility
costs ran over budget by a combined $13 million in those years.
Among other added costs, the campus also paid out $6.4 million for 3
percent faculty salary increases that it had expected the state to
cover, and suffered a $7 million cut from the Legislature, in fiscal
2014.
Manoa's
financial crisis was the chief reason UH President David Lassner gave
when he fired Apple on July 30 with three years remaining on a
contract.