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The Educational and General Base Budget reports, which detail the projected annual budget of the University of Maine, reveal the athletic department is losing millions of dollars annually. Other financial documents indicate the university is spending less of its budget on educational instruction now than it was in previous decades.
In the current fiscal year — which runs July 1, 2009 to June 30, 2010 — athletics is projected to cost the university $7.3 million more than the revenue it brings in.
Athletic Director Blake James said the athletic department is subsidized by the university, but that the projected loss of $7 million sounded high. James said he thought the actual loss would be closer to $5 million.
“We try to generate about half of our own budget,” James said in reference to UMaine athletics. “We generate somewhere in the $5 million range from ticket sales, the athletic store and multimedia. We want to maximize revenue as much as we can.” James added that the amount the athletics department brings in depends on how teams perform in the season.
The budget for fiscal 2010 projected the athletics department would generate about $4.5 million in revenue, falling far short of its expected $12.2 million in expenditures. This discrepancy would be covered by revenue in the general university budget, the vast majority of which comes from tuition and state appropriations.
It is common for Division I athletic programs to receive university subsidies, and the amount of these subsidies has grown in recent years, according to a national analysis done by USA Today in January. If the 2010 budget provides an accurate estimate, UMaine is in the 25 percent of higher learning institutions that receives the largest percentage in university subsidies.
The university’s priciest athletic program is the football team, which cost almost $1.2 million this year, according to the report for fiscal 2010. The men’s ice hockey team was budgeted about $900,000, while the women’s and men’s basketball teams are both projected to cost the university more than $500,000.
“We’re evaluating our situation,” James said. Last year, the athletic department was forced to suspend the university’s volleyball and men’s soccer programs, and this year another $300,000 must be trimmed off next year’s budget by May, James said.
“We’re not considering cutting any other sports,” James said. “Never say never, but I don’t see us cutting more teams.”
UMaine currently has 17 Division I sports teams and must retain at least 14 to stay in Division I athletics.
Beyond the numbers, James said the value of UMaine athletics is immeasurable.
“There are so many values,” James said. Athletics “brings the campus community together, unifies students and alumni, and it raises awareness of our campus nationwide.” James also said graduated student-athletes are generous financial supporters, such as former basketball player Richard Collins who, with his wife, donated $5 million to the renovation of the Collins Center for the Arts.
The bulk of sports teams’ operating costs comes from coaches’ salaries and benefits. James said budgeting for coaches’ salaries is troublesome because the athletic department must set the amount before it knows how much revenue the teams will bring in. James does not think UMaine coaches are overpaid.
“I think our coaches do a great job working within their means and giving athletes a first-class experience,” James said. “I’m satisfied with the budget we have, given the financial challenges our state is going through. We get great support from the university and alumni.”
In the wake of the Academic Programs Prioritization Work Group’s report released last week, which recommends drastic academic changes, some critics on The Maine Campus Web site have suggested athletics, not academics, should take the brunt of any cuts.
There appears to be a historical trend in the financial documents from decennial accreditation reports indicating student education has been slipping on the university’s priority list. These reports made by UMaine, which were prepared for the New England Association of Schools and Colleges, show the university has steadily decreased its allocations for academic instruction from its peak of 28.3 percent of its budget in fiscal 1987 to only 22.7 percent last year. Instead, the university has spent more on research, which rose about 5 percent in the same time period, as well as institutional support (2 percent) and student services (1 percent).
Susan Hunter, vice president of academic affairs and provost, said although she had been involved in preparing the most recent accreditation report in 2009, she was not aware such a decrease had occurred.
“I would have thought we would be spending more on instruction now,” Hunter said. She said the cost of many factors that affect instruction, such as benefit rates and health insurance, have increased this decade.
Vice President for Administration and Finance Janet Waldron could not be reached for comment by press time.
The university’s Educational and General Base Budget reports from fiscal years 2006-2010 are available for student viewing at the Fogler Library Reserve Desk. The university’s accreditation reports from 1988, 1999 and 2009 can also be found at Fogler in Special Collections on the third floor.
CORRECTION:A previous version of this article incorrectly stated that UMaine has 15 Division I sports. UMaine has 17 Division I sports.
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