That's a shame, and he is 100% correct about the bullshit business aspect affecting other programs - music, art, literature, etc. Plain and simple a lot of organizations just don't give a fuck. It sounds cynical and cliche', but the bottom line often ends up being if it doesn't look good on paper get rid of it. That drives me god damn insane.
It's a fucking major university!!! If a program isn't generating a specific amount of revenue or interest try spending some god damn money on advertising/promotion. I'm not going to pretend I've got it all figured out, but it sounds like a combination of greed and laziness on the part of administration - because 200K isn't mother-fucking shit.