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Wednesday, December 19, 2007

AG Finds Fault in Plan For Cabinet Salaries

By Trip Jennings
Copyright © 2007 Albuquerque Journal; Journal Capitol Bureau
    SANTA FE— Gov. Bill Richardson's administration probably violated the state constitution when it asked the state's two largest universities to pick up part of the salaries for three high-level appointees this year, according to the Attorney General's Office.
    And even if the arrangements were constitutional, the salary agreements for two of the officials probably violated a state statute that safeguards against conflicts of interest, the opinion said.
    In a written news release issued Monday, the Governor's Office said the University of New Mexico and New Mexico State University agreements were discontinued weeks ago after Richardson ordered a staff review in early August.
    That has resulted in two of the officials taking steep cuts in pay.
    Under an agreement this year, UNM agreed to pay $100,000 a year toward Higher Education Secretary Reed Dasenbrock's salary of $257,250. That brought his salary up to what he had been making while serving as UNM provost— and far more than what his predecessor had made with the state.
    NMSU, meanwhile, paid William Flores' $220,000 provost salary while he served as deputy secretary of higher education.
    That means Dasenbrock now earns $100,000 less at $157,500, or exactly what his predecessor, Beverlee McClure, earned at the Higher Education Department.
    Flores, meanwhile, earns $135,000, Richardson spokesman Allan Oliver said.
    UNM also paid $60,000 a year toward Health Secretary Alfredo Vigil's $175,000 salary. Vigil still earns $175,000.
    The salaries for Dasenbrock, Flores and Vigil now are being paid solely by the state agencies where they work.
    Oliver said the AG's opinion "confirmed that there was no evidence of any unethical behavior or conflicts of interest" related to the arrangements. The release went on to say that the opinion was based on "some inaccurate, outdated assumptions." Oliver said that statement was based on the fact that the agreements had been terminated.
    Dasenbrock, reached Tuesday afternoon, said UNM stopped paying the $100,000 portion of his salary Nov. 1. He said he looked forward to serving the state, even at the lower salary.
    NMSU paid Flores until Sunday at the rate he was paid before going to work at the Higher Education Department, or $220,000. The Higher Education Department picked up his salary of $135,000 on Monday, Oliver said.
    The six-page AG's opinion, issued Monday, was in response to Sen. John Arthur Smith's request this summer for a review of the legality of the salary arrangements. The Democrat from Deming and other lawmakers viewed the arrangements as an attempt by the Richardson administration to get around the Legislature's power to appropriate money.
    "If they are going to usurp the legislative powers, I will challenge them," Smith said Tuesday.
    Lawmakers also were concerned after learning that Dasenbrock and Flores were going to earn about $100,000 more than their predecessors, while Vigil would make about $60,000 more than the state's previous health secretary.
    The attorney general's opinion said the universities' contributions to the salaries likely violated the Constitution unless they were "either appropriated for that purpose by the Legislature or paid as compensation for the officer's services to the universities."
    The Legislature never signed off on the arrangements, which were activated after this year's legislative session.
    Dasenbrock performed no services for UNM but was paid by the university for an unused yearlong sabbatical, according to his agreement. However, the agreements between UNM and Vigil and NMSU and Flores raised the specter of conflicts of interest, the AG's opinion said.
    It said the AG's Office believed both men were ethical and competent, capable of serving without letting their state positions unduly influence them in their university employment.
    However, the two men were in positions that afforded them the power to oversee the very institutions that were picking up part of their tab, the opinion said.
    "We are concerned that the concurrent holding of a Cabinet office and a position with a university regulated, to any degree, by the office raises the very conflict of interest issues addressed by the Governmental Conduct Act," the six-page opinion dated Monday said.