Budget bill would erase the Athletics deficit if signed

SANTA FE — The New Mexico budget proposed to eliminate all of the University of New Mexico Athletics Department's $4.4 million deficit. It's not a done deal — Governor Michelle Lujan Grisham has until April to reject or approve each budget line.

Athletics' cumulative deficit has been a regular topic of conversation over three years of Board of Regents meetings.

In 2017, the Higher Education Department (HED) placed the Athletics Department under an Enhanced Fiscal Oversight Program, requiring them to submit additional budgets to better monitor the Department's spending habits.

The HED thumped UNM for Athletics salaries, benefits and transfers regularly exceeding its budget in a letter from the department.

HED specifically cited 2011 to 2017 as the years of concern — all years under former Athletics Director Paul Krebs. The New Mexico attorney general indicted Krebs last year with several felony charges relating to his management of the Athletics Department.

When UNM cut four sports from its roster in 2018, administrators argued it would reduce spending, among other reasons.

Lujan Grisham may choose to line-item veto any part of the budget bill, including the language that would erase the Athletics deficit. As of Feb. 23, she hasn't indicated any plans on vetoing that section of the bill.

The budget was approved in the final hours of the 54th Legislature on Feb. 20. It includes the entire state's budget along with all its agencies, such as UNM and New Mexico State University.

Sen. John Arthur Smith (D-Deming) pushed for language to cancel the Athletics deficit at both UNM and NMSU. Smith is known for his conservative approach to the state's finances.

"I'm sick and tired of both universities having to take money games. We're not competitive, and we're getting crushed, but they've got to play those games to get enough money for their athletics departments," Smith told the Albuquerque Journal.

Smith was referring to UNM's multimillion-dollar contracts with Power 5 schools like Notre Dame and Alabama. According to Athletics Department contracts, the football team will generate $11 million in body-bag games against the likes of Oklahoma ($1.6 million) and Mississippi State ($2 million), among others.

This is a developing story.

Justin Garcia is the Editor-in-Chief of the Daily Lobo. He can be contacted at editorinchief@dailylobo.com or on Twitter @Just516garc