UNM teachers may not receive a pay cut after all, since top UNM administrators are willing to take the cut on their behalf.
The state Legislature passed a mandate that would force state employees to pay an extra 1.75 percent from their paycheck into their Educational Retirement Board (ERB) pensions. Faculty Senate President Richard Wood said Tuesday that the University could cover the ERB costs if the Board of Regents approves budget recommendations.
“UNM proposes to cover the full 1.75 percent additional hit to salaries permanently,” Wood said. “Except administrative vice presidents and above will not be covered.”
The University will be able to cover the costs through a number of cost-saving measures. Most of it will come from administrative salaries providing revenue to the ERB. Under the proposal, top administrative salaries will have to pay the extra 1.75 percent.
Other areas to stream revenue will come from department consolidation, such as Information Technology and tuition increases.
Wood said an 8 percent tuition increase will be necessary to offset UNM’s budget deficit and maintain the University’s research institutions. He said $8.1 million could be secured for the University if it raises tuition.
“The president is on board,” Wood said about the pension plan. “But there must be a tuition increase.”
Today, the ERB measure will be presented to UNM President David Schmidly, who would receive the 1.75 percent cut.
University spokeswoman Susan
Mckinsey said she sees no reason why he would not pass the recommendation on to the regents.
“Covering the 1.75 is called the ERB swap,” she said. “It’s our intent, in our proposal, to do that. The final say will be with the regents.”
McKinsey said one legal obstacle could stall the measure.
New Mexico tax lawyers should give the final go-ahead for the ERB plan before the regents meet Monday. There they will hear final budget recommendations from on-campus cost-containment groups and determine a final budget.
The regents have until April 18 to send a final budget to Santa Fe.
“It looks positive, but we won’t have a final say,” McKinsey said. “They are talking to state tax lawyers to make sure we are on legal ground.”
Some faculty members were surprised at the olive branch the administration extended, especially after years of tension between the two groups. The Faculty Senate in February 2009 voted “no-confidence” in Schmidly.
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“I am surprised and pleased,” professor Margaret Connell-Szasz said. “I don’t think my opinion is different from most people. Most faculty agree with it.”
John Rask, UNM Government Relations spokesman, said the state government is exploiting public workers through ERB.
“(Faculty) should all be outraged,” he said. “You are being individually cached to make up the general budget for the state. That should probably be propagated amongst the faculty.”
Wood told more than 60 faculty members at the meeting he was surprised at the administration’s position to help out.
“This is not something we went to bat for,” he said. “The administration came up with this.”
