The University of New Mexico

NEWS RELEASE

 Media contact: Karen Wentworth, 277-5627
Susan McKinsey, 277-1807

For Immediate Release

February 9, 2009

In an effort to brace itself against possible cuts in next year’s budget, the University of New Mexico will expand cost containment measures begun last November by initiating a Voluntary Furlough Program that will enable employees to take time off without pay while protecting their job status. The voluntary furlough program will begin in July.

University President Schmidly will take the lead by taking a 15-day voluntary unpaid furlough this summer.

“When the scope of the fiscal crisis began to become apparent, we acted quickly, with a program of cost reductions that have enabled us to continue teaching, research and patient care unaffected,” said Schmidly, who noted that other public universities have been forced into mandatory furloughs and layoffs.

“We can’t bury our heads in the sand and hide from the economy, and the fact is that we need additional cost containment measures to meet the challenge of what could be $12 million in reductions during fiscal year 2010. Those steps are essential to continue our important work in the classroom and the research laboratory and keep our current workforce intact.”

In addition to the Voluntary Furlough Program, UNM will continue its “pause and hold” strategy of postponing new hires, pay raises and promotions except in critical academic and research areas, restricting travel and equipment purchases and reducing administrative spending. The University is also planning to reduce non-academic administrative spending by 15 percent over next three years and University Departments are being asked to develop energy savings plans that will reduce consumption costs by 20 percent.

Besides its cost containment efforts, the University is in the process of expanding revenues by increasing enrollment and research funding. President Schmidly has also directed a surcharge on ticket sales for various athletic events beginning in FY 2010, the proceeds of which will be dedicated to academic services for student athletes.

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