To match the 18.2 percent raise in tuition this year, the athletic department spent $1 million over the budgeted expenditure on athletic scholarships.
UW-Madison students and athletes alike have had to cope with extreme in-state tuition hikes. As a result, the athletic department scholarship fund had to be raised from $5.8 million to $6.8 million to cover athletic scholarships after the tuition raise.
Not only was the athletic department forced to award larger scholarships to athletes, but it also no longer receives funding from Wisconsin after the state cut $700,000 last year from the department.
\These type of financial challenges happen quite frequently and that's the financial challenge you face on an annual basis,"" Assistant Athletic Director Steve Malchow said.
Money from the hike in tuition has gone toward the deficit the university has suffered from the state budget cuts.
""On the whole, the [UW] system has suffered a net loss of $100 million in funding that the state had formerly provided, so tuition increases made up part of that,"" said Guy Gottschalk, former president and current member of the UW System Board of Regents.
Because the athletic department does not receive any money from the tuition increase, the department is forced to find other ways to fund athletic scholarships. Currently the athletic department receives money from ticket sales, concessions, conference television contracts and fundraising, among other forms of revenue.
The athletic department is forced to tighten its belt and watch expenses, according to Malchow. As a last resort the department can raise ticket prices, but they will try not to make decisions that will directly affect the student body.
Despite budget cuts in other areas of the athletic department, Jaime Polland, director of business services athletic department, said scholarships are crucial in attracting the best athletes, which in turn draws bigger crowds to lucrative sporting events.
""The department is not going to cut scholarships. Basketball, for example, has 13 scholarships. It's just that they now cost more to pay those scholarships after the tuition increase,"" said Pollard.
Malchow reiterated that UW-Madison faces budget problems every year and must deal with the problems as they arise.
""With the changing economy ... when factors like this occur, it poses a challenge,"" he said.
