{"id":189263,"date":"2016-09-25T17:08:38","date_gmt":"2016-09-25T23:08:38","guid":{"rendered":"http:\/\/nmpolitics.net\/index\/?p=189263"},"modified":"2016-09-25T17:11:58","modified_gmt":"2016-09-25T23:11:58","slug":"the-unm-lobos-sing-the-budget-blues","status":"publish","type":"post","link":"https:\/\/nmpolitics.net\/index\/2016\/09\/the-unm-lobos-sing-the-budget-blues\/","title":{"rendered":"The UNM Lobos sing the budget blues"},"content":{"rendered":"<p>There have been happier times at the University of New Mexico. Packed into the Student Union Ballroom on Thursday, hundreds of people heard UNM\u2019s three top administrative officials outline the increasingly negative financial outlook for New Mexico\u2019s flagship institution of higher learning.<\/p>\n<div id=\"attachment_189267\"  class=\"wp-caption module image alignleft\" style=\"max-width: 336px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-189267\" src=\"http:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2016\/09\/Jackson-student-center-336x224.jpg\" alt=\"Jackson Student Center\" width=\"336\" height=\"224\" srcset=\"https:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2016\/09\/Jackson-student-center-336x224.jpg 336w, https:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2016\/09\/Jackson-student-center-768x512.jpg 768w, https:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2016\/09\/Jackson-student-center-771x514.jpg 771w, https:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2016\/09\/Jackson-student-center-1170x780.jpg 1170w, https:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2016\/09\/Jackson-student-center.jpg 1200w\" sizes=\"auto, (max-width: 336px) 100vw, 336px\" \/><p class=\"wp-media-credit\">UNM photo<\/p><p class=\"wp-caption-text\">The Jackson Student Center at the UNM Anderson School of Management.<\/p><\/div>\n<p>Prompting an informal town hall meeting UNM President Robert Frank likened to a \u201ccrisis drill\u201d was the recent notice of\u00a05\u00a0percent budget cuts to some state institutions by the administration of N.M. Gov.\u00a0Susana Martinez.<\/p>\n<p>In the fall of 2016, the Santa Fe budget axe swings big even as longer-range financial challenges confront UNM due to statewide population loss, lagging economic growth, declining numbers of students of traditional college age, and lawmakers grasping tight purse strings.<\/p>\n<p>Standing below a Power Point\u00a0presentation\u00a0that showed New Mexico\u2019s mammoth state budget deficit climbing towards the billion dollar mark by next fiscal year, UNM Executive Vice President David Harris spoke about the need for contingency planning by university departments in light of a possible $14.2 million budget cut to UNM\u2019s main Albuquerque campus and $22.2 million system-wide in the current fiscal year alone.<\/p>\n<p>Frank elaborated on the bind the university finds itself in as it enters the fourth month of the fiscal year, with lawmakers having conversations \u201cbehind closed doors\u201d regarding possible cuts &#8212; without the participation of the UNM community or the public.<\/p>\n<p>\u201cWe don\u2019t know what is going on,\u201d Frank said. \u201cThey\u2019re going to take it out of a budget we\u2019re already in.\u201d<\/p>\n<p>In a readjustment to a new budget reality, UNM announced last\u00a0week it was freezing temporary and permanent staff hiring for at least the next six months. Under the new policy, waivers will be considered as long as they are \u201cmission critical positions\u201d for which \u201cno restructuring opportunities\u201d exist. In a memo, Frank wrote that he expected faculty hiring would be \u201csignificantly curtailed.\u201d<\/p>\n<aside class=\"module align-left half type-aside\">\n<h3>About this article<\/h3>\n<p>This story was produced by\u00a0<a href=\"http:\/\/frontera.nmsu.edu\/\" target=\"_blank\">Frontera NorteSur<\/a>,\u00a0a U.S.-Mexico border news service run by the Center for Latin American and Border Studies at New Mexico State University.<\/p>\n<\/aside>\n<p>However, Frank said <span class=\"aBn\" data-term=\"goog_905762442\"><span class=\"aQJ\">Thursday<\/span><\/span> he hoped to avoid outright job cuts. \u201cOur goal is to do this without lay-offs&#8230; our goal is save our workforce,\u201d Frank insisted. But UNM\u2019s president was careful to stress that the specific, short-term cuts discussed Thursday\u00a0do not affect projects funded by external sources like grants or the Health Sciences Center, which has other issues and considerations.<\/p>\n<p>Slashes to UNM and <a href=\"http:\/\/nmpolitics.net\/index\/tag\/nmsu\/\" target=\"_blank\">other higher education institutions<\/a> in New Mexico are bound up with decreasing state revenues that\u00a0have historically relied on oil and gas resources. As the price of fossil fuels has plummeted, so have state revenues.<\/p>\n<p>In many ways, New Mexico is getting a taste of what her neighbor to the south, Mexico, is digesting at the moment. The Pe\u00f1a Nieto administration rolled out\u00a0 budget cuts approximating $12 billion earlier this month because of lagging revenue, blamed in large measure on the dive in international oil prices. Although Mexico has made some strides in diversifying sources of government revenue in recent years, oil still figures as an essential ingredient in baking the budget pie.<\/p>\n<p>While cuts will have to be approved by the Mexican Congress, the Pe\u00f1a Nieto administration has targeted education, the National Institute of Statistics, Geography and Informatics (Mexico\u2019s census bureau), the National Science and Technology Council, tourism promotion, health care, the Office of the Federal Attorney General, and even the armed forces for cuts, according to Mexican press reports.<\/p>\n<p>At UNM\u2019s town hall, Frank and UNM Provost Chaouki Abdallah explored a budget scenario that\u2019s been gloomy ever since the Great Recession of 2008, netting trimmed-back operations and difficulties in hiring faculty. \u201cWe\u2019ve scraped and scraped,\u201d Frank said. \u201cI believe we\u2019ve stretched so far it\u2019s impossible to stretch farther.\u201d<\/p>\n<p>Until two years ago, UNM was at least able to replace retiring or resigning faculty headed to \u201cgreener pastures,\u201d but its ability to do so is now \u201cshrinking,\u201d Abdallah\u00a0 said. \u201cThis year we will actually be losing faculty,\u201d the UNM administrator declared. Accordingly, Abdallah said he instructed college deans about a month ago to reduce their hiring plans by half.<!--more--><\/p>\n<p>Frank defined UNM\u2019s financial predicament as \u201cunsustainable,\u201d necessitating not only plans to cope with the mid-year emergency but also long-term strategies that will rethink the university\u2019s mission and how best to achieve it.<\/p>\n<p>Placing his university\u2019s present and future in a bigger context, Abdallah said UNM is far from alone in grappling with funding and spending, with even bigger institutions like UC Berkeley and the University of Wisconsin sharing the same boat. \u201cSo our cost is going up, our income and revenues are not,\u201d he summed up. \u201cEverybody in the U.S. today, at least in the public sector, is facing the same situation.\u201d<\/p>\n<p>UNM\u2019S trio of senior administrators fielded questions and comments from the large crowd at the town hall. Most of the audience was older, appearing to reflect faculty and staff. For the most part, students were noticeably absent from the event, even though a dimming financial picture makes yet another tuition and\/or fee increase likely next year.<\/p>\n<p>Prior to the town hall, the buzz was that UNM had avoided making budget cuts on the order of <a href=\"http:\/\/nmpolitics.net\/index\/tag\/nmsu\/\" target=\"_blank\">New Mexico State University\u2019s<\/a> precisely by raising tuition and fees for the 2016-17 academic year. No advance mention of the Thursday\u00a0town hall was included in the week\u2019s two print editions of the New Mexico Lobo, UNM\u2019s student newspaper. Nonetheless, the New Mexico Lobo\u2019s online edition posted <a href=\"http:\/\/www.dailylobo.com\/article\/2016\/09\/23-unm-town-hall\" target=\"_blank\">a Friday\u00a0article<\/a> on the previous day\u2019s town hall. The event was widely publicized beforehand by the UNM administration via e-mail.<\/p>\n<p>In the question\/answer comment period, audience members touched on the potential impacts of possible cuts and emerging new university policies.<\/p>\n<p>\u201cWe will look at all our costs as we are driving them down,\u201d Frank pledged.<\/p>\n<p>Eliciting a round of hefty applause, a woman suggested the administration consider temporary 5\u00a0percent cuts for the more than 300 UNM employees who earn above $200,000 per year and the approximately 1,000 who enjoy annual salaries of more than $100,000. The woman estimated such salary cuts would save UNM in the neighborhood of $8 million.<\/p>\n<p>\u201cDo you want to volunteer for the (crisis) committee right now?\u201d Frank asked, evoking laughs. On a similar note, Professor Lois Meyer queried whether rigor in streamlining operations would apply to the administration as well.<\/p>\n<p>\u201cEverything is on the table. That\u2019s what this process is about. It\u2019s not downward, it\u2019s everywhere,\u201d Frank replied.<\/p>\n<p>Unsurprisingly, labor concerns were vented at the meeting, including a question by a staff member about the U.S. Department of Labor\u2019s 2016 rule changes to the Fair Labor Standards Act that increase the number of employees eligible to receive overtime pay and add more record-keeping requirements.<\/p>\n<p>\u201cWe don\u2019t like the rule any better than you do\u2026,\u201d Frank answered. \u201cWe\u2019ve struggled with it. It\u2019s created havoc across all parts of our enterprise.\u201d<\/p>\n<p>In comments that drew a positive reaction from the audience, a woman who said she worked at the university\u2019s library reminded Frank of the stagnating income of UNM staff during a time when benefits have been reduced and the cost of living is going up.<\/p>\n<p>\u201cI\u2019m painfully aware of that reality,\u201d Frank responded. \u201cNothing breaks my heart more than not being able to raise faculty and staff salaries.\u201d<\/p>\n<p>In response to a suggestion from graduate student Sally Barker that UNM entertain \u201clooking outside the box\u201d in order to diversify revenue sources, Frank and Abdallah assured that such efforts are underway.<\/p>\n<p>Local resident Terri Blake asked Frank about an administration plan first presented last year that proposed moving the university licensed radio station KUNM from its longtime home in O\u00f1ate Hall to a site next to New Mexico PBS, formerly known as KNME.\u00a0(Full disclosure: This\u00a0reporter does some volunteer work with KUNM.)<\/p>\n<p>Acknowledging that he had heard previous discussion of a closer association between the two broadcasting entities, Frank said he was not aware of an imminent move. \u201cGiven the situation we\u2019re at today, it\u2019s like 50 years away,\u201d he added.<\/p>\n<p>UNM Executive Vice President Harris told Frontera NorteSur\u00a0after <span class=\"aBn\" data-term=\"goog_905762443\"><span class=\"aQJ\">Thursday\u2019s<\/span><\/span> gathering that the budget cut numbers presented at the town hall are based on the assumption that a 5\u00a0percent cut is applied to every agency that gets a state appropriation, but are not a certainty since UNM officials are largely in the dark about what is happening in Santa Fe and among lawmakers.<\/p>\n<p>\u201cWe haven\u2019t heard a thing yet,\u201d Harris said. \u201cI think everything is up in the air\u2026contingency planning is all that we can do.\u201d A special legislative session is expected to convene soon to address the budget crisis and possibly consider other items like restoring the death penalty.<\/p>\n<p>A testy election-year session could ensue, with the Republican Martinez opposed to tax increases &#8212; and some lawmakers, especially Democrats, pushing for more revenues to mend the state budget, which carried over a deficit from last fiscal year in violation of the New Mexico Constitution&#8217;s mandate to balance the budget.<\/p>\n<p>Harris, who\u2019s served in state government and higher education posts since 1972, told the town hall that New Mexico&#8217;s and UNM\u2019s current financial circumstances constitute \u201can unprecedented situation,\u201d illustrated by Moody\u2019s recent downgrading review of state bonds and the possibility of the same for UNM.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>University officials are bracing for a possible $14.2 million budget cut to UNM\u2019s main Albuquerque campus and $22.2 million system-wide in the current fiscal year alone.<\/p>\n","protected":false},"author":2732,"featured_media":189267,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[196,118,125,107,3276],"class_list":["post-189263","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-budget","tag-economy","tag-education","tag-roundhouse","tag-unm","prominence-top-story"],"_links":{"self":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts\/189263","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\/2732"}],"replies":[{"embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/comments?post=189263"}],"version-history":[{"count":0,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts\/189263\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/media\/189267"}],"wp:attachment":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/media?parent=189263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/categories?post=189263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/tags?post=189263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}