The Board of Regents welcomed President David Schmidly back to work during its Jan. 11 meeting before discussing the University’s financial state and its Athletics Department.
As 2011 begins, pending 2010 financial reports show the largest deficit exists in Athletics.
GPSA president Lissa Knudsen said that is unacceptable.
“It’s very disturbing, and we want to know what the plan is,” she said. “How are they going to stop this hemorrhaging of resources, especially in times like these … We need to be focused on academics.”
A “consolidated financial report” for the first one-third of the year, July-October, lists an Athletics deficit of more than $3.1 million. The report says Athletics’ “unfavorable net margin” is the result from the timing of football expense versus football revenue, and expected football revenue will not meet the budgeted level.
Ava Lovell, vice president for finance, said that revenue from the rest of the football season still needs to be booked, as well as funds from the Mountain West bowl games and basketball season.
The report says basketball revenue should offset debt payments on UNM bonds used to fund the renovation of The Pit, and that Pit revenue will be closely monitored.
“Our basketball always does help us balance out these books,” she said.
Knudsen said basketball revenue should help the struggling department, but in years past, it hasn’t been enough.
“Potentially, basketball can bring in more money than football,” she said. “It seems to have done that in the last couple of years, but it hasn’t made back enough.”
Athletics, however, is not the only area struggling financially.
UNM’s golf course has a nearly $200,000 deficit, according to the report.
Other areas showing deficits include student aid, public events and ticketing services, but Lovell said revenue in those areas is typically made in the spring.
Despite significant deficits in Athletics and other areas, the University’s general fund was almost $47 million favorable because of tuition being recorded on a semester basis, rather than a monthly basis.
Other meeting items:
A Lobo Energy “energy conservation presentation” showed that UNM’s efforts to reduce energy consumption over the past decade have resulted in a 30 percent reduction in energy density and made for $4.1 million in avoided costs.
The regents approved funds for emergency repairs to chemistry buildings and labs.
The regents approved nominations to the hospital Board of Trustees.
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