National Collegiate Athletic Association

The NCAA News - News and Features

September 1, 1997

Budget/finance panel forwards recommendations for II funds

The Division II Budget/Finance Subcommittee, after reviewing results of a recent membership survey, has made recommendations regarding how to distribute the annual $3 million Division II enhancement fund and an anticipated surplus for the 1997-98 fiscal year.

The subcommittee is forwarding those recommendations to the new Division II Budget and Finance Committee, which will meet in March 1998. Planning currently is underway for a membership forum on the recommendations during the 1998 Convention in Atlanta.

The subcommittee recommends:

  • Distributing one-half of the enhancement fund ($1.5 million) equally to each active member institution in good standing, and the other half to Division II conferences based on the number of active member institutions in good standing in each conference.

  • Placing all unallocated funds from the 1997-98 fiscal year in the Division II membership trust for future use, rather than spending the surplus or distributing the funds to the Division II membership at this time.

    Although the membership survey did not indicate overwhelming support for any of several enhancement-fund alternatives, a majority (55 percent) of the 212 responding institutions supported equal distribution among Division II institutions.

    The subcommittee agreed that equal distribution is a fairer method than is currently employed in Division II. The enhancement fund currently is distributed partially on the basis of participation in the Division II Men's Basketball Championship.

    It also agreed that Division II conferences should be included in an equal distribution method. Because adoption of the method may result in a few conferences receiving less money than under the current method, the subcommittee recommends that the change become effective in 1999-2000 -- giving conferences time to plan and adjust budgets.

    The subcommittee also recommended a cautious approach involving unallocated or surplus funds during the first year under the new governance structure.

    Unallocated or surplus funds for 1997-98 currently are projected at $1.3 million. The subcommittee recommends placing the surplus funds in the membership trust, in order to give the Budget and Finance Committee time to thoroughly study possible uses.

    The subcommittee also recommended the following as priorities in making decisions about use of future surpluses: championships expansion and enhancement, enhancement of academic support services and compliance initiatives, and other student-athlete welfare issues generally.

    The Division II Presidents Council reviewed the subcommittee recommendations during its August 12-13 meeting, but took no action. It is up to the Division II Budget and Finance Committee to decide next March whether to recommend specific action on the recommendations.

    Survey results were mailed in late August to Division II institutions.