{"id":181171,"date":"2016-08-31T14:02:41","date_gmt":"2016-08-31T20:02:41","guid":{"rendered":"http:\/\/nmpolitics.net\/index\/?p=181171"},"modified":"2016-09-01T12:45:59","modified_gmt":"2016-09-01T18:45:59","slug":"nmsu-is-preparing-for-additional-state-funding-cuts","status":"publish","type":"post","link":"https:\/\/nmpolitics.net\/index\/2016\/08\/nmsu-is-preparing-for-additional-state-funding-cuts\/","title":{"rendered":"NMSU is preparing for another state funding cut"},"content":{"rendered":"<p>New Mexico State University is preparing\u00a0for an increasingly likely additional reduction in state funding that\u00a0could necessitate more\u00a0budget cuts &#8212; or increases in tuition and fees.<\/p>\n<div id=\"attachment_172601\"  class=\"wp-caption module image alignleft\" style=\"max-width: 336px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-172601\" src=\"http:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2016\/07\/NMSU-sign-336x225.jpg\" alt=\"NMSU sign\" width=\"336\" height=\"225\" srcset=\"https:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2016\/07\/NMSU-sign-336x225.jpg 336w, https:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2016\/07\/NMSU-sign.jpg 591w\" sizes=\"auto, (max-width: 336px) 100vw, 336px\" \/><p class=\"wp-media-credit\">Heath Haussamen \/ NMPolitics.net<\/p><p class=\"wp-caption-text\">The New Mexico State University sign at the corner of Union Avenue and Sam Steele Way in Las Cruces.<\/p><\/div>\n<p>Many say additional cuts to higher education funding are inevitable.\u00a0The state is facing <a href=\"https:\/\/www.abqjournal.com\/832391\/the-latest-new-mexico-state-budget-revenues-plunge.html\" target=\"_blank\">a shortfall of $458 million<\/a> in the current fiscal year, which began July 1, according to updated revenue projections released last week.<\/p>\n<p>The state also ended the last fiscal year $131 million in the red.\u00a0Lawmakers plan to meet in a special session, likely next month, to address both\u00a0shortfalls.<\/p>\n<p>Gov. Susana Martinez, a Republican, insists\u00a0that she won&#8217;t consider raising taxes\u00a0to reduce the need for cuts. Though many lawmakers, particularly Democrats, want to consider tax hikes, there\u00a0aren&#8217;t\u00a0likely enough votes to override a Martinez veto.<\/p>\n<p>Which leaves significant cuts as the only apparent option. The state may use its $219 million Tobacco Permanent Fund, which comes from settlements with tobacco companies, to help plug the budget shortfalls, but it&#8217;s not nearly enough.<\/p>\n<p>Because of Martinez&#8217;s opposition to tax increases, &#8220;you have no choices,&#8221; said state Sen. Joseph Cervantes, D-Las Cruces. &#8220;I think our universities and colleges and all the families that support them are going to have to increasingly shoulder the burden.&#8221;<\/p>\n<p>&#8220;That&#8217;s frankly why the response from the Legislature so far has been to ask the governor what she proposes,&#8221; Cervantes said.<\/p>\n<p>The Governor&#8217;s Office hasn&#8217;t responded to two emails seeking comment. Martinez has\u00a0already directed state agencies under her direct control &#8212; which don&#8217;t\u00a0include NMSU &#8212; to <a href=\"http:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2016\/08\/FY-17-Spending-Reduction-Memo.pdf\" target=\"_blank\">reduce spending by 5 percent<\/a>. She&#8217;s urged agencies not under her control to do the same.<\/p>\n<p>Negotiations between the governor and legislative leaders about how to balance the budget have largely been held in secret. Martinez has said she wants lawmakers to call a one-day session to essentially show up and vote on a proposal that is worked out\u00a0in advance.<!--more--><\/p>\n<p>NMSU\u00a0is already\u00a0making plans.<\/p>\n<p>&#8220;We cannot wait until next year to become fiscally conservative because we would not have time to recover funding if needed,&#8221; Chancellor Garrey Carruthers wrote in <a href=\"https:\/\/president.nmsu.edu\/activity-report-august-14-august-20\/\" target=\"_blank\">a recent memo<\/a> to the university community.<\/p>\n<p>NMSU spokesman Justin Bannister said the university&#8217;s\u00a0previous estimated shortfall of $12.1 million in the current fiscal year included a\u00a0$1.5 million cushion in anticipation of possible\u00a0additional state funding cuts. Carruthers&#8217; memo states that NMSU will also &#8220;develop a plan to conserve operating funds.&#8221;<\/p>\n<p>&#8220;Beyond that, we are watching the situation and will respond the way we need,&#8221; Bannister said.<\/p>\n<p>The state\u00a0already cut higher-education funding by 2 percent <a href=\"http:\/\/nmpolitics.net\/index\/2016\/02\/senate-committee-takes-hatchet-to-state-budget-plan\/\" target=\"_blank\">earlier this year<\/a>. The University of New Mexico\u00a0and many other public colleges <a href=\"https:\/\/www.abqjournal.com\/744766\/unm-regents-ok-25-tuition-hike.html\" target=\"_blank\">raised tuition<\/a> to help cover their shortfalls. NMSU&#8217;s Board of Regents rejected a tuition increase, with\u00a0Student Regent Amanda L\u00f3pez Askin <a href=\"http:\/\/www.lcsun-news.com\/story\/news\/education\/nmsu\/2016\/04\/04\/nmsu-regents-say-no-tuition-hike\/82639018\/\" target=\"_blank\">calling that action<\/a>\u00a0\u201ca very deliberate breaking of a cycle.\u201d<\/p>\n<p>Instead, due to the reduced state funding and falling student enrollment, NMSU has been cutting.\u00a0Thus far that has included\u00a0eliminating <a href=\"http:\/\/nmpolitics.net\/index\/2016\/07\/nmsu-releases-list-of-jobs-being-eliminated\/\" target=\"_blank\">at least 120 filled and vacant positions <\/a>and\u00a0<a href=\"http:\/\/nmpolitics.net\/index\/2016\/06\/nmsu-regents-ok-employee-benefit-cuts-more-may-be-needed\/\" target=\"_blank\">reducing some employee benefits<\/a>\u00a0including\u00a0<a href=\"http:\/\/nmpolitics.net\/index\/2016\/07\/nmsu-cuts-on-campus-employee-health-services-equestrian-team-surveying-engineering-program\/\" target=\"_blank\">on-campus employee health services<\/a>. Carruthers and many other high-ranking university employees have\u00a0<a href=\"http:\/\/nmpolitics.net\/index\/2016\/06\/carruthers-other-high-paid-nmsu-employees-taking-pay-cuts\/\" target=\"_blank\">taken pay cuts<\/a>. The university plans to stop funding the equestrian team <a href=\"http:\/\/nmpolitics.net\/index\/2016\/07\/nmsu-changes-mind-gives-equestrian-team-one-more-year\/\" target=\"_blank\">next year<\/a> and is considering <a href=\"http:\/\/nmpolitics.net\/index\/2016\/07\/decision-to-cut-nmsu-surveying-engineering-program-isnt-yet-final\/\" target=\"_blank\">cutting its Surveying Engineering academic program<\/a>.<\/p>\n<p>All colleges and administrative divisions have already been required to reduce\u00a0their budgets by between 5 and 6.2 percent this year, NMSU says.<\/p>\n<p>A <a href=\"http:\/\/nmpolitics.net\/index\/2016\/08\/nmsu-has-kept-students-costs-in-check-better-than-other-nm-schools\/\" target=\"_blank\">recent analysis<\/a> by the national news organization ProPublica found that tuition and student fees at\u00a0NMSU haven&#8217;t\u00a0spiked\u00a0as much since 2000 as they have\u00a0at other public colleges in New Mexico and some surrounding states. But additional cuts might put pressure on regents at NMSU and other schools to once again consider raising tuition and fees.<\/p>\n<h3>&#8216;There has to be a better way&#8217;<\/h3>\n<p>New Mexico&#8217;s\u00a0budget woes are largely due to plummeting oil and gas revenues. That\u00a0has\u00a0sparked new discussions about how to diversify the state&#8217;s economy. Some worry that cutting higher education funding further could harm those efforts.<\/p>\n<p>State Rep. Bill McCamley, D-Las Cruces, whose district includes NMSU, is among them. In an interview, he highlighted\u00a0programs at NMSU that can help attract new jobs to the state and equip New Mexico&#8217;s young people to do those jobs.<\/p>\n<p>For example, NMSU&#8217;s aeronautical engineering program prepares students to work in jobs related to Spaceport America and the new industry the state is trying to build in Southern New Mexico. Do\u00f1a Ana Community College has just started teaching courses at the industrial park in Santa Teresa, arguably the state&#8217;s largest economic development project, which are aimed at improving workers&#8217; technical skills related to jobs there. And degrees in\u00a0computer science are key to helping New Mexicans land jobs with companies like\u00a0Facebook, which is considering <a href=\"http:\/\/www.oregonlive.com\/silicon-forest\/index.ssf\/2016\/08\/facebook_data_centers_small-to.html\" target=\"_blank\">building a data center<\/a> in Los Lunas.<\/p>\n<p>&#8220;This is an absolutely vital component to future job creation,&#8221; McCamley said. &#8220;So if we&#8217;re just going to slash and burn, and that includes cutting NMSU&#8217;s budget, we are hamstringing our ability to create a long-term economy that helps us get out of this mess.&#8221;<\/p>\n<p>McCamley said he won&#8217;t vote for a state budget that makes cuts without increasing revenues through &#8220;things like getting rid of <a href=\"http:\/\/www.nmvoices.org\/archives\/6006\" target=\"_blank\">the capital gains tax break<\/a>, which has created zero jobs and gives away $50 million a year.&#8221;<\/p>\n<p>He also\u00a0wants lawmakers to consider legalizing marijuana to increase revenue. He&#8217;s sponsored legislation to do that\u00a0<a href=\"https:\/\/www.nmlegis.gov\/Legislation\/Legislation?chamber=H&amp;legType=B&amp;legNo=75&amp;year=16\" target=\"_blank\">in the past<\/a>,\u00a0but it hasn&#8217;t passed.<\/p>\n<p>Cervantes said shifting the burden of funding government away from the state and onto\u00a0lower-level agencies &#8212; like cities, counties, and universities &#8212; has been a consistent trend during\u00a0Martinez&#8217;s tenure. In 2013, a Martinez-supported\u00a0bill that passed with bipartisan support essentially <a href=\"http:\/\/nmindepth.com\/2013\/03\/21\/tax-bill-shows-need-for-legislative-reform\/\" target=\"_blank\">shifted tax burden<\/a> from corporations to cities and counties.<\/p>\n<p>In response to the reductions in state funding that resulted from that tax bill, Las Cruces, Do\u00f1a Ana County and many other local governments across New Mexico have raised gross receipts taxes.<\/p>\n<p>&#8220;State government gets to take the political position that they didn&#8217;t raise any revenue, but they continue to force that obligation on to cities, counties, and students,&#8221; Cervantes said. &#8220;In the end the taxpayer still gets the bill, but Santa Fe gets\u00a0to wash its hands &#8212; and that&#8217;s really what this is all about.&#8221;<\/p>\n<p>Cervantes said he advocates for restructuring the state&#8217;s tax policies &#8220;from the ground up &#8212; but that&#8217;s an ambitious undertaking that we&#8217;ve not seen from the current administration.&#8221; Good tax policy, he said, should spread tax burden &#8220;thinly across a broad and diverse group of sources.&#8221;<\/p>\n<p>In\u00a0contrast, Cervantes called New Mexico&#8217;s\u00a0tax and funding cuts, which he said have forced local tax hikes and tuition increases, &#8220;the opposite of a good fiscal policy.&#8221;<\/p>\n<p>&#8220;We&#8217;re putting more and more of the burden of state government on fewer people in a smaller group,&#8221; he said.<\/p>\n<p>McCamley said the consequences\u00a0of such actions are significant.<\/p>\n<p>&#8220;These cuts basically continue a downward spiral for the state,&#8221; McCamley said. &#8220;There has to be a better way.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New Mexico State University is preparing for an increasingly likely additional reduction in state funding that could necessitate more budget cuts &#8212; or increases in tuition and fees.<\/p>\n","protected":false},"author":1,"featured_media":172601,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[196,118,125,133,107,271],"class_list":["post-181171","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-budget","tag-economy","tag-education","tag-nmsu","tag-roundhouse","tag-taxes"],"_links":{"self":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts\/181171","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/comments?post=181171"}],"version-history":[{"count":0,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts\/181171\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/media\/172601"}],"wp:attachment":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/media?parent=181171"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/categories?post=181171"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/tags?post=181171"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}