As the state's budget standoff between Gov. Gary Johnson and legislators continues, UNM and its hospital that is dependent Medicaid funding remain stuck in the crossfire.
The University's funding future is uncertain, with tuition, faculty and staff compensation and retaining UNM Hospital's status as the state's only Level-I trauma center are stuck in legislative limbo.
"This is a really important issue, and we are staying involved as much as we can, informing all sides about our position on the budget and the impact each scenario would have on the University," UNM President Bill Gordon said.
Johnson vetoed the Legislature's final budget proposal that included full formula funding; a 2.5 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.
Johnson vetoed the first version of the budget legislators approved, citing overuse of the state's reserves and soaring Medicaid spending. Medicaid is a medical aid program designed for those unable to afford regular medical service and is financed by the state and federal governments. Johnson deemed the latest budget proposal fiscally irresponsible, and reiterated that pigs would fly before he would sign any legislation that maintained Medicaid funding.
Johnson has maintained that he can run the state without a legislative appropriation by instructing agencies such as UNM to run on last year's budget allocations.
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Gordon contends that such an action will hurt the University because this year the state is supposed to update it's tuition formula to include student population increases from three year's ago.
"That's a big deal for us because it's millions of dollars we have basically been working without during the past three years and really need that money to offset the costs of serving more students," Gordon said.
Diane Kinderwater, Johnson's press secretary, says the governor does not believe UNM will be affected by his budget actions because it will retain the same money as last year.
"Basically, the governor is not touching UNM at all, so there really shouldn't be much to worry about," Kinderwater said.
That logic has University administrators frustrated and still lobbying legislators who may be involved in a budget compromise or state Supreme Court case that would decide the funding battle.
At the same time, UNM leaders also are concerned about Johnson's battle against increasing Medicaid funding because of the severe impact such cuts would have on the state's largest hospital that the University runs.
UNM Hospital stands to lose $46 million in state and federal funding under the governor's plan. Without the funds, the hospital would have to cut trauma care, including the elimination of air services, and as a result, would lose its Level-I trauma status.
Gordon said the battle has left the University anticipating a variety of state funding scenarios while trying to finalize its own budget.
"We're just trying to make sure people understand the negative impact this budget battle could have on UNM and that our concerns are heard," he said. "Other than that, we are just watching and waiting like everyone else."
