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Budget Cuts Besiege UH Kris Derego Jerry Chang, Chairman of the House News Editor Higher Education Committee

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Budget Cuts Besiege UH Kris Derego Jerry Chang, Chairman of the House News Editor Higher Education Committee SSoftballoftball TTriviarivia Win prizes from Papa John’s and UH athletics Return of the beatdowbeatdownn SSportsports 8 REVIEW INSIDESIDE A THE VOICE K LEEOO Features 7 Serving the students of the University of Hawai‘i at Mānoa since 1922 MONDAY to TUESDAY, MARCH 2 to 3, 2009 www.kaleo.org Volume 103 Issue 77 Budget cuts besiege UH Kris DeRego Jerry Chang, chairman of the House News Editor Higher Education Committee. “UH plans to issue bonds for the initial As the economy stumbles, so $100 million by the end of March, does the University of Hawai‘i’s and the extension will allow suffi- bottom line. cient time to encumber and expend Faced with falling tax dollars funds after the bonds are issued.” and the highest enrollment in history, Additionally, the university is university administrators are bracing seeking an exemption from the state for budget cuts of over $30 million. procurement code, which regulates the State revenue comprises 47 percent awarding of government contracts and of UH spending, with research grants, state purchases. tuition, retail sales and endowments “The exemption would assist the making up the rest. university in implementing much- “We are expecting to cut roughly needed deferred maintenance and $31 million out of general funds, which capital renewal projects on all cam- currently total about $725 million,” puses more quickly, shortening delays said UH President David McClain. in the contracting and procurement Though shifting economic condi- process,” Todo said. tions could change the final figures, Priorities for the universi- the college’s flagship campus, UH ty’s capital improvements budget Mānoa, will bear the brunt of the include $350 million in health and cuts, according to Kathy Cutshaw, safety, capital renewal and deferred vice chancellor for administration, maintenance, and equipment, finance and operations. PHOTO ILLUSTRATION BY KENT NISHIMURA/KA LEO O HAWAIʻI according to Todo, who added that “The governor asked all state UH President David McClain says that UH is expecting roughly $725 million in budget cuts across the entire system. the state’s Economic Revitalization agencies to prepare for a 10 to 20 Task Force recommended greater percent cut,” Cutshaw said. “For in the context of a surge in UH enroll- potentially, make a vertical cut,” said housing, renovations at UH Mānoa’s autonomy for the university in UH, this would mean a $13.5 mil- ment,” McClain said. “Our proposed Donovan, who emphasized that elimi- Hale Aloha dormitories, an addition 1997, including an exemption from lion, $22 million or $31 million cut. operating budget reflects the need nating a sport would be a last resort. to the Biomedical Sciences Building state procurement law. UH Mānoa’s share of those cuts to sustain our services to this larger Nearly $25 million of the depart- and construction of the UH West Act 115, passed by the Legislature would be $7.8 million, $13.6 million population and is consistent with ment’s $30 million operating budget is O‘ahu campus in Kapolei. in 1998, gave UH greater flexibility in or $19.4 million.” Department of Budget and Finance committed to salaries, travel, scholar- “The additional bond issuance managing its own affairs, including an Last year, the UH Board of instructions, which encouraged us ships and athlete support, according authorization is necessary to enable exemption from the procurement code. Regents approved a general fund to use alternatives to general funds to Donovan, who added that UH must the university to more quickly Though the university used its flex- spending request of $1.4 billion for where possible.” offer no fewer than six men’s sports to address its growing facility needs ibility to implement “SuperQuote,” an fiscal years 2010 and 2011, cutting Administrators from the UH retain NCAA Division I membership. and major repair and maintenance electronic sourcing program, and the taxpayer-supported expenses by up to athletics department are also pinch- “Only one men’s program can be requirements,” said Howard Todo, state’s first Internet-based purchas- $30.6 million for the next two years. ing pennies, according to athletic cut and it can’t be football or basket- UH chief financial officer. “The proj- ing card system, the exemption was University officials achieved the reduc- director Jim Donovan, despite an ball according to the NCAA formula,” ects covered by the request total rescinded in 2004. tions by transferring $21.6 million independent auditor’s report show- Donovan said. an estimated $202 million in costs. “The projects that have been in spending from the general fund to ing that the department produced a University administrators are Accordingly, the Board of Regents already identified involved little in tuition, research and other subsidies, $300,000 surplus for 2007-2008. Only awaiting new projections from the directed university administration the way of permitting and are ready while cutting electricity and imple- $4,385,555 in Sugar Bowl proceeds state Council on Revenues, which to request additional authorization to launch quickly, just the kind of eco- menting a partial hiring freeze. kept the department’s $5.4 million net meets on March 9, before determin- to allow the university to pursue nomic stimulus contained in President “These reductions are occurring deficit from growing, said Donovan at ing what programs will lose funding. needs that may arise between legis- Obama’s initiative,” Todo said. a Feb. 19 meeting of the Board of In January, the council forecast a $1.8 lative sessions.” Some contractors oppose rein- Regents’ committee on audits. billion shortfall for the state over the The university is also asking stating the exemption, which they ISOLATED SHOWERS Calling the financial situation next three years. the Legislature to extend the college’s believe will allow the university to “very precarious,” Donovan told com- authorization to issue $100 million in play favorites. H:77° L:66° mittee members that the department Legislative solutions bonds until June 30, 2013. Originally “Protests are filed because the is facing a $3 million deficit for the In order to offset looming spend- granted by the Legislature in 2007, unsuccessful contractor feels as if the NORTH 2–4 WEST 1–2+ fiscal year ending June 30 and dis- ing constraints, university officials the bond authorization is set to expire successful contractor did not play by SOUTH 1–2+ EAST 2–3 cussed the possibility of cutting a are asking the state Legislature to at the end of the current fiscal year. the same rules that he had to play sport to save money. authorize the issuance of an addition- SOURCE: NATIONAL WEATHER SERVICE “The university is in the pro- by,” said Tim Lyons, president of the “If you look at our operating al $150 million in revenue bonds to cess of issuing $100 million worth Subcontractors Association of Hawai‘i. Short-period swells will produce rough surf expenses, it’s fairly difficult for us to finance capital improvement projects, of revenue bonds previously grant- conditions on east-facing shores. make horizontal cuts, but we could, including the development of faculty ed by the Legislature,” said Rep. See Budget Cuts, page 2 2 Monday, March 2, 2009 [email protected] BLOOD DRIVE + Monday, 11:15 a.m. to noon, HOW THE WORLD SOLVED NOAA Research Laboratory, Mānoa Minute + Monday, 8 a.m. to 4 p.m., Center for Korean Studies THE OZONE PROBLEM Info: Kevin Hamilton, (808) Campus Center auditorium + Monday, 7:30 to 9 p.m., 956-8327, [email protected] Compiled by Alice Kim Info: Katherine Putes, (808) STUDY ABROAD AT KOREA Architecture auditorium E-mail submissions for Mānoa Min- Calendar Editor UNIVERSITY 956-2223, [email protected] Presenter: Susan Solomon, ute to [email protected] Budget Cuts For a limited time, get as low as 0% APR† financing on a new from page 1 or demo 2008 Subaru or a discount. Hurry in for the best selection! “All the procurement code does is budget cuts or processes that may make sure that everybody is playing arise,” said Carolyn Tanaka, UH asso- on a level playing field. If they are ciate vice president for external affairs % UP $ -OR- TO not, you need to have a provision that and university relations. A 2,500 0 † †† APR FINANCING DISCOUNT allows people to protest.” Designed to establish reason- ON A NEW OR DEMO 2008 SUBARU Daniel Chun, government able funding levels based on size, affairs chair for the American geographic location and strategic % Institute of Architects, agreed, not- goals, the formula will weight costs 2009 FORESTER 2.9 ing that the exemption could increase differently, producing an estimated † APR FINANCING overhead costs in the design and con- expenditure amount for each cam- -OR- struction industries. pus and streamlining the univer- “Our increased overheard costs sity’s budgetary procedures. $ will have to be borne by other public “With a formula, the university 1,000 entities and the private sector,” Chun would no longer come to the execu- DISCOUNT†† said, adding that while the bill pre- tive and the Legislature with indi- scribing the exemption, Senate Bill vidual program change requests,” 505, encourages the university to use said John Morton, UH vice president the provisions of the code, there is no for community colleges and chair- EARNED THE INSURANCE INSTITUTE guarantee that the Board of Regents man of the task force. “For example, FIVE-STAR CRASH SAFETY RATING** FOR HIGHWAY SAFETY’S NATIONAL HIGHWAY TRAFFIC SAFETY SUBARU DEALERS OF HAWAII will do so. the university would not come to the 1 “2008 TOP SAFETY PICK” AWARD ADMINISTRATION (NHTSA) SubaruHawaii.com Lawmakers on the House Legislature for permission to hire a OAHU BIG ISLAND MAUI Higher Education Committee dis- new janitor to maintain a newly con- Servco Subaru Servco Subaru agreed, however, and, after amend- structed building, but would make Mapunapuna Waialae Hilo Subaru Kona Subaru Island Subaru PH: (808) 961-4411 PH: (808) 329-5274 PH: (808) 877-0031 ing the bill to coerce the university that decision internally within the PH: (808) 687-7600 PH: (808) 687-7620 to conform to procurement policies allocation of the formula.” † On approved credit.
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