Higher education leaders grilled on funding, return on investment by lawmakers

SANTA FE — As higher education leaders went to the Roundhouse on Wednesday to ask lawmakers for more than $1 billion in funding for the coming fiscal year, the panel of elected officials also questioned why the leaders have not adapted to a new landscape or why money previously provided has not matched the return on investment.

Stephanie Rodriguez, secretary of the New Mexico Higher Education Department; Joe Shepard, president of Western New Mexico University; Becky Rowley, president of Santa Fe Community College; and Monica Torres, chancellor of New Mexico State University System Community Colleges, outlined their proposals on behalf of their counterparts before the Legislative Finance Committee.

The hearing came a little more than a month before the start of the 60-day session on Jan. 21. On Monday, new revenue estimates predicted legislators will have $892.3 million in “new” money available next year.

It comes at a positive time for the state’s higher education sector. New Mexico saw a 9.2% year-over-year increase in enrollment among first-time college and university students, in contrast to a declining trend nationwide. Officials credit initiatives such as the Opportunity Scholarship, created in 2022, as a key driver behind the enrollment increase.

The scholarship is just one of the initiatives that Rodriguez hoped to maintain in her department’s $186.5 million budget request for fiscal year 2026. During Wednesday’s hearing, Rodriguez said 13% of the state’s total budget is appropriated to higher education. The request in higher education funding for this year is $1.4 billion, with most of it disbursed to the institutions.

Shepard, Rowley and Torres outlined millions of dollars in several unified requests, including $46 million for a 4% compensation increase for all higher education employees; $4 million in student services/basic needs; $10 million for campus safety and $11.7 million for cybersecurity.

Amid the laundry list of priorities, Rep. Nathan Small, D-Las Cruces, the committee vice chairman, was frank with higher education leaders on their progress.

“Our funding has massively grown, and we’re proud of that,” Small said. “But our progress has to follow that investment.”

In a conversation about credential (degree) production, Small shared his belief that they don’t often lead to a higher-paying job to support their families and progress in their communities.

Shepard responded that he is “equally proud” of a mother or father who graduates even if it takes them 10 years.

But Small interrupted the president, saying that his comment “sells New Mexican students short” in an era where “braided learning,” with in-person and online courses, is becoming the norm.

“I’m not advocating for an ‘in the door, out the door in three and a half to four years,’ but I am asking how do we make the progress we’re asking for instead of looking backwards,” Small said.

Shepard said he agreed.

The WNMU president was not asked by lawmakers on Wednesday about an ethics scandal accusing him of using taxpayer funds for numerous foreign business trips and purchases of high-end furniture for the president’s residence. Rep. Nathan Small, D-Las Cruces, said following the hearing that lawmakers passed that topic in the interest of time. Prior to the hearing, Shepard declined to comment on questions from the Journal about the effectiveness of his leadership or his future.

During the hearing, when Small asked whether the share for production of credentials was too big or small, Rowley responded, “probably too small.”

In an interview following the hearing, Rowley said she expects lawmakers to ask tough questions.

“Especially certain members, and I would say Chairman (George) Muñoz really does want to hold us accountable, as he should,” Rowley said.

She even touched on the senator’s key point that higher education institutions have seen increased funding over time, which, she said, lawmakers are rightfully using to examine outcomes.

“It’s very difficult. (Outcomes) are improving, but not as fast as we’d like to see them improve,” Rowley said. ‘We need to spend money on interventions to help (students) achieve their goals.”

In an interview following the hearing, Torres acknowledged the Legislature’s growing investment in higher education.

“It’s entirely fair for them to say, ‘What are we getting for these investments?’” Torres said.

Torres viewed the lawmakers’ questions as “straightforward.”

For Rowley, Wednesday’s hearing was a way to kick off the upcoming session.

“We really get a better feeling for what’s on (lawmakers’) minds,” Rowley said. “Our relationship with this committee is key. It is really important we communicate clearly with them what our needs are, and then they’re very clear on what their expectations are.”

Following the hearing, Small told the Journal that the committee is hearing from all parts of state government over several weeks. He said lawmakers are focused on higher education results and they anticipate additional investment in the sector next year. But New Mexico is already number two in the country in terms of state support for higher education, according to a legislative analysis.

Small said lawmakers are “seeing some promising signs of progress” from higher education leaders, “ but there is a long way to go.”

“Right now, there remain some big gaps and unanswered questions about how we best serve New Mexicans in an era where there’s more online education,” Small said. “We all have to take more responsibility and institutions and their leadership are absolutely accountable.”

Editor's note: This story was amended to reflect comments made by Rep. Nathan Small, D-Las Cruces. A previous version of the story contained comments attributed to the wrong lawmaker.