UNLV will not be using any donor funds as part of a revised plan to balance the athletic department budget and make it self-sufficient within two years, President Carol C. Harter said Thursday.
"We are sensitive to the fact that misperceptions about the athletic department's plans to offset an $800,000 budget shortfall have concerned some athletic donors," Harter said. "Athletic Director Charlie Cavagnaro and Norval Pohl, vice president for finance and administration, have worked very hard to identify alternative ways to replace the $85,000 loan from donated funds that was part of the budget-balancing plan made public earlier this week."
Under the plan announced earlier this week, the athletic department's $800,000 shortfall would be corrected through a $500,000 loan in institutional funds and approximately $300,000 in internal athletic department funds, of which $85,000 was from funds given by private donors to specific sports programs. According to the plan, that $85,000 was to have been spent only in the sports to which it was donated.
"Although the donated funds were to have been repaid with interest, we understand that some donors have been concerned about that plan," Harter said. "Accordingly, Charlie and Norval have developed an alternate plan that would replace the $85,000 in donated funds with $44,000 from unused athletic scholarships; $16,000 generated by an additional .5 percent across-the-board cut in the athletic department operating budget, bringing the total cut to 10.5 percent; and $25,000 from a freeze on part-time wages, which can be accomplished without employee layoffs.
"The balance of the athletic department's contribution to the solution of its budget problem -- $215,000 -- will come from miscellaneous athletic department revenue, as previously identified. We want our donors to know that we will be solving long-term fiscal problems within the athletic department, but we won't be using a dime of previously donated money to do it."
Explaining that the current administration inherited an athletic budget that was some 15 percent out of balance, Harter said, "I told Charlie Cavagnaro that we must have a balanced, self-sustaining budget within two years. That is a monumental task, when you consider it took four to five years for this situation to develop. I am confident that the plan we will present to the Regents tomorrow will accomplish that goal."