The University of New Mexico

NEWS RELEASE

                                                                                    Media contact: Susan McKinsey, 5050- 277-1807
(cell) 505-362-5530 mckinsey@unm.edu

FOR IMMEDIATE RELEASE

January 26, 2009

University of New Mexico President David J. Schmidly today announced a series of moves to focus resources into teaching and research and away from non-academic administration. The moves will reduce non-academic administrative spending on the University’s Main Campus by 15 percent over the next three years, while adding at least 10 additional full-time tenure-track faculty positions during the same period.

“In today’s difficult economic climate, it’s more important than ever that we concentrate our efforts on the things that matter most – teaching and research,” Schmidly said.

Besides cutting administrative costs, Schmidly announced an indefinite freeze of pay increases for himself and the University’s Executive Vice Presidents and Vice Presidents on Main Campus, and through fiscal year 2009-2010, a freeze of all increases in compensation for all Main Campus non-academic administrative staff earning more than $125,000 annually.

In addition, Schmidly pledged a comprehensive new University-wide policy on the award of “deferred compensation” for submission to the UNM Board of Regents in April. Deferred compensation refers to payments made to an employee’s tax-deferred retirement savings account in lieu of salary.

“At other Universities, deferred compensation is allowed only with the approval of the Regents, and we want to examine whether UNM should adopt a similar policy,” Schmidly said.

Reaction to Schmidly’s initiative was swift and positive.

“This is a great first step and good news for those of us who have been concerned about executive compensation. The University’s willingness to assess and adjust its business model is appreciated by all,” said State Senator Cisco McSorley, who chairs the Senate Judiciary Committee and represents the Albuquerque neighborhoods immediately adjacent to UNM.

“Though I had concerns about executive compensation, I am heartened to see that the Univesity is taking the lead and revisiting old policies,” added State Representative Larry Larranaga of Albuquerque.

Schmidly noted that the University’s early and rapid response to the mounting economic crisis last November appear to “have succeeded in allowing us to meet the mid-year revenue adjustments that will likely be contained in the State’s Solvency Plan.” Those moves included spending reductions and an across-the-board suspension in University hiring, pay raises and promotions.

Calling UNM “one of the most powerful economic engines in our State and in Albuquerque, Schmidly called on the University community to “join together to communicate the vital importance and contributions of UNM in this increasingly difficult economic climate.”

A copy of Schmidly’s statement to the University community follows:

Communication to the UNM Faculty, Staff and Students

From UNM President David J. Schmidly

January 26, 2009

Last November, as the economic crisis deepened, the UNM community responded immediately with a reduction in spending and an across the board suspension in hiring, pay hikes and promotions. While not easy, these steps have allowed us to continue our core missions of education and research while preparing to meet the possibility of a legislative rescission of 2008-2009 fiscal year funding.

From what we now understand, these measures have succeeded in allowing us to meet the mid-year revenue adjustments that will likely be contained in the State’s Solvency Plan.

This is critical because higher education is our best hope to secure a brighter economic recovery in our state.

UNM employs more than 22,000 people and continues to be one of the most powerful economic engines in our state and in Albuquerque. With the support of the Governor, the Legislature and our fellow citizens, we will continue to concentrate further on our teaching and research missions while keeping tuition affordable.

We are taking the following steps:

• We will reduce non-academic Main Campus administrative spending by 15% over the next three years to concentrate our resources on our teaching and research missions.
• At the same time, we will accomplish a net increase of at least 10 new full-time Main Campus tenure-track faculty positions.
• We will indefinitely freeze executive compensation of the President, Executive Vice Presidents and main campus Vice Presidents, including salaries, allowances and deferred compensation.
• We will develop a comprehensive University-wide policy on deferred compensation, which we will submit to the UNM Board of Regents at the April 2009 regular meeting.
• Through the end of fiscal year 2009-2010, we will freeze all increases in compensation for all Main Campus non-academic administrative staff earning more than $125,000 annually.

We have finalized these steps over the past several days and have shared our intentions with members of the Legislature. I am gratified to receive the following messages of support:

From Sen. Cisco McSorley : "This is a great first step and good news for those of us who have been concerned about executive compensation. The University's willingness to assess and adjust its business model is appreciated by all."

From Rep. Larry Larranaga : “Though I had concerns about executive compensation, I am heartened to see that the University is taking the lead and revisiting old policies.”

We are fortunate to have the most dedicated and talented faculty and staff of any higher education institution in the country. Each of you have made and are willing to make significant sacrifices to protect our core missions.

What is most important now is that all of us in the University community redouble our efforts on behalf of our students, and that we join together, as one, to communicate the vital importance and contributions of the University of New Mexico in this increasingly difficult economic climate.

###