The UK Athletic Board of Directors approved an operating budget on Monday for the 2010 fiscal year that would, among other things, increase giving to UK from $1.2 million to $1.7 million.

The approved budget was for $72.65 million for 2010, up from just over $67 million for 2009. The increase came despite increased travel costs and a struggling economy.

“(The economy) hits you on the expense side dramatically,” Athletic Director Mitch Barnhart said. “Because of the cost of tuition, because of the cost of gas and travel, it could put you in a really difficult spot. We’re very fortunate in that the (Southeastern Conference) has put us in a position to be able to hang in there.”

One major source of new revenue for the athletic association comes from a new TV agreement for SEC schools. The new SEC TV deal provided an increase from $6 million per year to almost $12 million per year.

Barnhart said several other programs across the country were being cut or losing funding because of the economy. Without that new contract, Barnhart said the athletic department would be in a much more difficult situation.

“I don’t know that we’d be having the same conversation,” Barnhart said. “I’m not saying that we’d be in the position of what we’d have to cut, but certainly we would not be in the position of being able to look at the new expenditures and just continue on with business as usual.”

Barnhart did say the athletic department would continue to look for ways to save money.

The athletic association has also begun to take proposals for a new downtown arena. Barnhart said three proposals have been received, though he declined to comment on which companies submitted the plans as they are still in the bidding stage.

Barnhart also said he was pleased to be able to increase the amount of money given back to the university. He estimated the athletics association has given nearly $12 million back to the university just in scholarship funding in the last 10 years.

“We want to continue trying to be good partners with the university,” Barnhart said.