The UNM administration is waiting with bated breath to hear what cuts or increases will come out of the New Mexico legislative session, which begins today.
Tom Clifford, chief economist of the New Mexico Legislative Finance Committee, made sobering budgetary predictions during a presentation to the Board of Regents at its meeting Jan. 12.
An increase in tuition and decrease in pay for UNM staff and faculty are two possible options to offset the estimated $200 million budget deficit, Clifford said, but it’s not the worst budget prognosis he’s seen.
“It’s a tough budget, but it’s not California,” he said.
Clifford said New Mexico’s total current revenue is $5.1 billion. The problems are occurring, he said, because the Legislative Finance Committee is recommending a $5.3 billion budget for the state. So, roughly $200 million may have to be collected through tuition increases and pay cuts, Clifford said.
“In terms of what I’m looking at in the rearview mirror, I really haven’t seen anything positive at this point,” Clifford said. “I haven’t seen anything begin to turn up the way we’re going to need it to.”
Clifford said the LFC is suggesting a 2 percent salary reduction for all public employees – including teachers in public schools and colleges. This will give the state approximately $76.2 million.
The LFC is also suggesting a 6 percent tuition increase — roughly $150 — for students who are residents, according to Clifford’s presentation. Non-resident students would be hit with a 15 percent increase, or around $1,300 dollars more per semester.
“Everything is unpopular,” he said. “I haven’t seen anyone really jump to embrace any of these proposals.”
Clifford said $600 million in federal stimulus money could be on the way to New Mexico, but no one knows when, or if, it will be available.
“The House of Representatives has passed a bill that would increase aide to the states,” he said. “In New Mexico’s case, over $600 million of additional aid to the state. We don’t know what the status of that will be in the senate.”
Marc Saavedra, director of the UNM Office of Government and Community Relations, said tuition increases would be covered by the Lottery scholarship. But, only about 20 percent of students on main campus have the scholarship, he said.
UNM is not supporting the Legislative Finance Committee’s recommendations, Saavedra said. UNM is firmly against salary reductions and tuition increases, he said.
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“We’re saying, ‘If you need that money, don’t do it to the tuition. It’s a tax on the students,’” Saavedra said. “We’re also being realistic. We are still in a decline, so there are going to be cuts.”
The Department of Finance Administration – the Governor’s sector of analysts who also prepare a budget proposal – did not outline any further cuts for UNM, he said.
However, Saavedra said the DFA could find itself adding a 3 percent cut to UNM’s budget as the session progresses. UNM supports the DFA’s recommendation, because it allows UNM to decide where budget cuts will be made.
“UNM right now supports the DFA recommendation because it doesn’t support reduction in salaries,” he said. “They’re looking at a 3 percent cut that they’ll implement during the session and they’ll give us full flexibility to implement that. That’s the recommendation that we like.”
The LFC is recommending a 4.1 percent total cut to UNM, Saavedra said, plus tuition increase and salary decrease. The administration would use input from the Regents, President Schmidly, Provost’s Office, ASUNM, GPSA, Faculty Senate and Staff
Council to decide where budget cuts are made after the legislative session, he said, as long as the legislature doesn’t mandate where specific cuts must
be made.
David Conway, UNM student and director of the ASUNM Lobby Committee, said a tuition increase may force some students to drop out of school.
“I think a lot of students are going to have to be making that decision, whether or not they can afford it,” Conway said. “That’s not really acceptable.”
Conway said ASUNM also supports the DFA’s recommendation for a 3 percent overall cut to UNM, if cuts must be made.
“I think that the University knows itself better than anyone else,” he said. “And, I think that if we have the ability to say where the money comes from then we’re going to be able to protect more services that we feel students desperately need.”
*New Mexico’s policymakers are going to toss around plenty of jargon over the next month or so when deciding if they should increase taxes or student tuition. So, the Daily Lobo compiled a list of terms and definitions to help you understand what the heck they’re talking about. E-mail us at news@dailylobo.com with suggestions of what else we need to define.
Fiscal year: A period used for calculating financial situations and outcomes that runs, in New Mexico, from July 1 to June 30.
Gross Receipts Tax: Taxes on consumer goods. The GRT is a good indicator of the state of New Mexico’s economy. Revenue from this tax decreased by 15 percent compared to last fiscal year.
Solvency: Solving and balancing the state’s budget.
Revenue: The majority of the state’s earnings come from the Gross Receipts Tax and Personal Income Tax.
LFC: The Legislative Finance Committee is a full-time legislative committee with analysts for every part of the state’s budget. They make recommendations on where to make cuts or increases.
DFA: The Department of Finance and Administration is a team of economists who work with the governor to make budget cuts.
Legislative Session: The New Mexico State Legislature gathers to discuss the state’s budget and other important state issues, and it lasts for 30 days.
I&G funds: Instruction and General Funds. At UNM, this money goes toward institutional support.
Special Projects: Funds for projects that increase student success, economic development, research, healthy communities and statewide services. There are 104 special projects at UNM, including KNME, El Centro de la Raza and the UNM Children’s Hospital – Pediatric Oncology.
House Appropriations Finance Committee: Reviews recommendations from DFA and LFC to develop subcommittees. They make the final recommendation for the House to approve. Senate will make amendments, and the governor will sign to approve the fiscal year’s operating budget.
Tuition credit: Tuition increase.
Capital Outlay: Funds for construction, renovation and equipment projects for statewide projects.
General Obligation Bond: A bill that must be passed before New Mexicans can vote on it for the following November election. Money from the bond is for teaching facilities and libraries. UNM wants at least 32 percent of bond funds, since it has 32 percent of square footage for teaching facilities statewide. UNM also has 48 percent of enrollment statewide. *
