Question & Answer

We sat down with Marc Saavedra, director of Government Relations, to find out how the Legislature's budget will affect UNM's.

Daily Lobo: What is the definition of "rescission," and what does it mean on a state level?

Marc Saavedra: A mid-year rescission means an appropriation reduction to the state budget.. July 1, we start with that new appropriation act, and therefore a new budget.

DL: Why do you think there are shortfalls this year that make a rescission necessary?

MS: In October, because of the weakness of the economy, the fall of oil and gas prices and (that in) 2002-03 they started reducing personal income tax and gross receipts tax.. All those have made for shortfalls in state revenue for state government.

DL: How much is the Legislature projecting the reduction of the budget will be?

MS: They have projected we are short roughly $450 to $500 million this year, another $250 to $300 million next year. So that is where rescission comes in.. What we are hearing is that they are going to go back into the legislative session coming up in January, and they are going to redo a budget for fiscal year 2009 by doing what we call an appropriation reduction to all state government. That's the rescission.

DL: When will the Legislature have more specific figures and details about the

rescission, and how it will affect UNM?

MS: The Legislative Finance Committee is going to wrap up their interim legislative committee hearing this Saturday. So, they end the year with the two biggest budgets, which is higher education and public schools on Thursday and Friday.. So, we probably wont have an exact answer until - it could be anywhere from as early as the 18th of December all the way up until the session starts and we know exactly what we are going to be faced with.

DL: Although it is too early to know specific details of the rescission, how is it forecasted to affect UNM?

MS: So, we are hearing anywhere from 1 percent to 5 percent reduction. And then there are two things going on: You have the Legislature saying higher education and public schools should plan on a reduction to this year's budget, and the Governor's Office is saying they are right now not factoring in higher education and public schools for fiscal year 2009 and be guaranteed that in fiscal year 2010, they'll have a reduction for not only the executive agencies and the judiciary but higher education and public schools. So, what people need to understand is that it is pretty realistic that we are going to be facing cuts. We just don't have the exact percentage, so we are being very conservative.

DL: What are University administrators and Government Relations staff doing in Santa Fe to represent UNM?

MS: I think people need to understand that my office and the administration is meeting with legislators, members and staff of the Legislative Finance Committee and the Department of Finance Administration on a constant basis to make sure that if there are cuts that we are given the target and that we are given a percentage and we are allowed to do that at UNM instead of having the Legislature doing it for us.

DL: Are there groups that might be hit harder than others by the rescission?

MS: People at UNM need to realize that the executive agencies, their money reverts at the end of the year, so they lose that money and start with a new budget. They acquire vacancy savings every year in their state budget. They have already pulled those vacancy savings, and they are still asked to find more savings on top of that. We are not even being asked to do any of that. We are not being hit as hard as all the other folks are right now, and we are also very fortunate that our money does not revert and the Legislature does not come and take vacancy savings from us.

DL: Could the Legislature do that to UNM?

MS: They can exercise that right. They have the authority to do that if they want to.

~ Hunter Riley