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Tuesday, November 18, 2008

Colleges Planning for Possible Budget Cuts

By Martin Salazar
Journal Staff Writer
       Gov. Bill Richardson has said he hopes to avoid midyear budget cuts for education, but officials at many state universities are preparing for the worst.
    The University of New Mexico and Socorro-based New Mexico Tech have frozen wages and hiring for all but critical positions funded with state money. Both are trying to cut back on travel and unnecessary expenses.
    Central New Mexico Community College has a "hiring chill," meaning every new vacancy is under scrutiny. The college is also requiring executive approval for all travel and overtime.
    New Mexico Highlands University in Las Vegas, Eastern New Mexico University in Portales and Western New Mexico University in Silver City are also scrutinizing vacancies. Eastern is also looking to delay equipment purchases and reduce travel and utility expenses.
    New Mexico State University in Las Cruces is taking more of a wait-and-see approach. It hopes to save money by asking employees to turn off lights when possible, examining travel requests and discouraging use of inefficient vehicles, said spokesman Darrell Pehr. He said conversations are under way on how to deal with a possible midyear budget cut.
    The state projects a shortfall for the current fiscal year of more than $500 million, and Gov. Bill Richardson has adopted cost-cutting measures for state agencies. He has said he is making every effort to avoid cuts for public schools and colleges and universities.
    Some lawmakers, however, say that may not be possible.
    Senate President Pro Tem Tim Jennings, D-Roswell, sent a letter to universities asking them to prepare for possible cuts. He sent a similar letter to school superintendents, drawing criticism from Richardson.
    "The thinking is behind the scenes: We can't get to where we want to be by holding education harmless," said Sen. John Arthur Smith, D-Deming. He noted that public education and higher education account for close to 60 percent of the state's roughly $6 billion budget.
    Smith said universities are being "extremely prudent" by cutting spending now. And given what's happening with oil and natural gas revenues and the economy, the current year's state support might be generous compared to next fiscal year.
    "We don't know where the bottom is on this one right now," Smith said.
    New Mexico Tech President Dan López said he adopted a limited hiring freeze at Tech in early August.
    "The longer you wait, the harder it is to retain enough savings in order not to have to execute a layoff," said López, a former Department of Finance and Administration secretary.