University employees have proposed alternatives that would keep them from having to give 1.5 percent of their paychecks to retirement funds.
The 1.5 percent increase in employee contribution would be mandated if Gov. Bill Richardson signs House Bill 854 into law.
The Staff Council Executive Committee outlined several suggestions in a letter to the Board of Regents, asking members to consider them during the Budget Summit on Thursday.
Loyola Chastain, Staff Council president, said the Executive Committee hopes the Regents will take the committee seriously and implement a solution so that employees do not have to take a pay cut.
"This is a year of not getting a salary increase, and so paying 1.5 percent would decrease our pay," Chastain said. "What we are trying to do is ask them to hold employees harmless so that they're not losing more money. I mean, we have people on the brink of bankruptcy or homelessness as it is, and to have them start losing pay is worrisome."
House Bill 854 was proposed to save state money by decreasing contributions to state employees' retirement funds by 1.5 percent and having employees cover the amount instead.
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The bill would save the state about $3.6 million this year through higher education employees, who, after adding the 1.5 percent, would contribute a total of 9.4 percent from each paycheck to the Education Retirement Bureau.
According to the letter, the Executive Committee is asking the regents and administration to consider a one-time 1.5 percent retirement credit for employees to offset this temporary salary reduction. This would cost more than $2 million.
"We are aware that this is a large sum of money. However, it is not a recurring cost, and it would be an investment in the employees of the University," staff members said in the letter. "(It would) assist them in staying whole and ensuring they can continue to meet their monthly financial obligations."
The Staff Council proposed four solutions for employees to avoid losing money.
One would re-allocate ending balances from Instruction and General funds in the Executive Vice President Administration and the President and Advancement base allocations to pay for retirement contributions. This would total about $2.1 million.
The remaining funds needed could be acquired from other sources. The Staff Council suggested taking about $100,000 from the Athletics Department and another $100,000 from the Development Office.
The second solution asks the University to split the difference needed with employees and fund 0.75 percent of the total. This would cost the University $1,172,500.
If the University could not supply funding for the 1.5 percent reduction, the Staff Council proposes making a graduated scale, where employees could contribute varying amounts of money depending on their annual income. Employees making less than $40,000 would not have to lose pay.
Chastain said she would be prepared to pay for a solution such as this.
"I would be willing to pay more so that an employee making $40,000 a year or less doesn't have to lose any money," she said. "That's what we are trying to do here, is put the burden on a little bit higher-paid employees and no burden at all on the lower-paid employees."
The last proposal asks the administration to allow employees who earn annual leave to donate one day of their paid leave to a pool, which would generate the needed funds.
Chastain said that by recommending solutions, the committee is encouraging the regents to come up with a solution that works for everyone.
"We can tell them about all the problems, but the critical point is actually trying to give them some solutions . so that there (are) some options for them to think about or do a combination of a couple of things," she said.
UNM spokeswoman Susan McKinsey said it is too early to predict what the regents will decide in the Budget Summit.
"The constituencies are putting much thought and care into their responses," she said in an e-mail to the Daily Lobo. "It would be premature to comment on any particular recommendation before an equally thoughtful analysis and review can occur."
The regents asked the constituencies to submit comments regarding the budget recommendations one week before the hearing, McKinsey said. The responses are also evaluated by the budget office.
The four constituency groups include the Staff Council, Faculty Senate, Associated Students of UNM and the Graduate and Professional Student Association.
Chastain said that if the regents do not choose an option that will make it easier on employees to have to pay 1.5 percent, many employees will be severely affected.
"People always say, 'At least we are glad to have jobs,' and that's true, but it just doesn't help when even though you have a job, you continue to lose money," she said. "We are willing to sacrifice by not having a salary increase, but it makes it very hard when you're having a salary decrease."
