UNM administrators say they are hoping for the best and making contingency plans as the stalemate between legislators and Gov. Gary Johnson over next year's state budget continues.
Senate Bill 1, which contains funding for all state agencies including UNM, was approved by the Legislature the last day of this year's 30-day session and is now on Johnson's desk.
The governor vetoed the first version of the budget legislators approved, citing overuse of the state's reserves and soaring Medicaid spending. He has said that he will sign the current budget "when pigs fly" because he still considers it financially bloated. Johnson said he does not plan on calling legislators back for a special session because they are unwilling to work with him on what he sees as key fiscal issues.
"We're basically just watching and waiting," said Julie Weaks, vice president for Business and Finance. "We're hopeful that things will work out, but this is really between the governor and the Legislature - and possibly the court system if it is not resolved soon."
The deadline for Johnson to sign a state budget is March 6. The governor has said he will likely try to run the government on a continuing resolution, which means all agencies would function on the same appropriation as last year's budget.
But, the Legislature stopped automatically adding continuing resolutions to the budget eight years ago and is arguing that it is unconstitutional for Johnson to make such a decision because the New Mexico Constitution states that the Legislature is the only entity that can make appropriations.
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Once the governor makes a decision, Weaks said a variety of things could happen that would affect UNM.
One likely option is that the Legislature will take the governor to court to dispute his decision.
"We could end up with a rather lengthy court battle, making the outcome very difficult to predict at this point," Weaks said.
With Johnson asserting that he will not convene a special session, the Legislature could reconvene itself in an extraordinary session with two-thirds legislators' approval to debate approving a continuing resolution or assembling a new budget.
Since its budget is in legislative limbo, Weaks and Gordon say the University leadership is making contingency budget plans and is anticipating as many likely funding scenarios as possible.
The bill on the governor's desk includes full formula funding; a 2.5 percent tuition credit, or percentage the Legislature expects the University to raise tuition; and a 15 percent cut in all special projects except for the Newborn Intensive Care Unit, New Mexico Poison Control and the Graduate Student Research Development Program.
Gordon said the bill on Johnson's desk is the most favorable option for UNM because the full formula funding is adjusted for enrollment gains made five years ago and will offset what the University already has invested in student support staff.
Republicans introduced another budget possibility the last day of the legislative session that called for cutting 4 percent from all state agencies and using the difference to shore up Medicaid. Weaks said that if legislators convened an extraordinary session and passed the Republican bill, it would cost UNM $9 million.
Regardless of which budget is passed, the state has not appropriated any funding for staff or faculty salary increases. The only way those could be funded would be through tuition increases.
The University has raised tuition 46 percent during the past six years, setting the cost of attending UNM at $3,026 annually for a full-time, in-state undergraduate student.
Gordon said normally the University would be discussing tuition with the community throughout the spring semester so that the changes do not catch students by surprise, but the budget problems have made that sort of planning tougher.
