Many of the University's top funding requests including faculty and staff salary compensation for next year may be in danger as the faltering national economy strikes closer to home, UNM President Bill Gordon said Wednesday.
Gordon said the forecast isn't particularly strong for all New Mexico agencies because the state's projected revenue has been steadily declining. He said that the economic slowdown, not support for the higher education agenda would likely prove to be UNM's biggest hurdle during the Legislative session in January.
Any shortfall that isn't covered by the state has to be absorbed by the University, which Gordon said is where UNM runs into problems forcing it to seek revenue from substantial tuition increases.
The state initially projected growth between 3 and 4 percent, with 3.5 percent representing $350 million in new revenue, Gordon said. Those projections recently dropped to 2.8 percent, or $107 million, he said.
"We could be dealing with revenue less than $1 million," he said.
To put the impact of that loss in perspective, Gordon said that an 8.5 percent salary increase for all higher education employees would cost $45 million. He added that if all state employees received a 1 percent increase that would cost $25 million.
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"If those projections stay in place there we're looking at something that will be a difficult year, not just for higher education, but for all state agencies," he said.
The concerns about declining revenue projections comes at the same time those problems are popping up in other states nationwide, Gordon said.
"Of course, this is all subject to change, but the forecast is not looking good," he said.
The University's top priority is continuing year four of a five-year plan to bring faculty and staff salaries in line with the average of their peer institutions. UNM is requesting an 8 percent salary increase for faculty and staff, which comes with a price tag of nearly $19 million.
In an effort to avoid a substantial tuition increase, the University's second priority is adjustments to the main campus workload and distance education formulas.
The main campus formula is used to determine the amount the Legislature gives the University for salary increases. The formula does not include University support staff, which comprise staff positions including payroll, human resources and UNM's president.
The distance education formula does not include general funding expenses, which means the University does not recover the full cost of educating each student.
Other instructional and general funding requests that fall under the University's second priority include paying for the addition of a master's program to the occupational and physical therapy program, College of Nursing enrollment expansion to help curb the state's nursing shortage and unavoidable cost increases for the Health Sciences Center. The unavoidable costs cover increased insurance and utility costs that Gordon said couldn't be covered by medical school tuition increases the way it has for the main campus because the school has a very limited number of students.
The third round of priorities cover instruction and general enhancements.
The top item listed under this section is building renewal and replacement. Following that, the University is asking for funding to allow the School of Nursing to conduct a distance education bachelor's program with community colleges, which is aimed at helping solve the state's nursing shortage.
Special projects for expansion and new programs make up the final priority. The University is proposing expansion at Carrie Tingley Hospital and the Cancer Research and Treatment Center, and renewing funding for the out of county indigent fund.
UNM's request is a 14.7 percent increase or nearly $35 million more than last year. With the adjustments, the University is expecting a total appropriation of about $270 million.
