Wednesday, December 28, 2016
TALLAHASSEE, Florida -- There’s a plan in place for Florida A&M’s athletic department to repay its $7 million deficit, but there are already a few bumps in what’s expected to be a long road.
According to a preliminary chart shown to Board of Trustees members in September, the plan is for the FAMU Foundation to pay $681,833.29 over three years toward the deficit. After that, the Foundation will make yearly payments of $269,593.54 with FAMU’s athletic department making increasing yearly payments until the deficit is paid in full.
In total, the repayment will take 12 years.
The plan calls for some prudent spending by FAMU athletics. Part of Athletic Director Milton Overton Jr.’s corrective action plan to ensure FAMU doesn’t fall further into debt is to use just 75 percent of the department’s annual budget.
In that regard, the FAMU has already hit a snag. As of Dec. 1, the department has a projected $6,981,759 in encumbrances and expenses, which represents 78.12 percent of the $8,937,500 budget. Plus, the athletic department's revenue is projected to fall $651,724 short of that number.