DAILY LOBO new mexico
Plan, or lack thereof see page 4
March 23, 2011
wednesday The Independent Voice of UNM since 1895
salary sacrifices Top administrators may take pay cut so faculty don’t have to
Faculty’s Reaction
by Shaun Griswold shaun24@unm.edu
UNM teachers may not receive a pay cut after all, since top UNM administrators are willing to take the cut on their behalf. The state Legislature passed a mandate that would force state employees to pay an extra 1.75 percent from their paycheck into their Educational Retirement Board (ERB) pensions. Faculty Senate President Richard Wood said Tuesday that the University could cover the ERB costs if the Board of Regents approves budget recommendations. “UNM proposes to cover the full 1.75 percent additional hit to salaries permanently,” Wood said. “Except administrative vice presidents and above will not be covered.” The University will be able to cover the costs through a number of cost-saving measures. Most of it will come from administrative salaries providing revenue to the ERB. Under the proposal, top administrative salaries will have to pay the extra 1.75 percent. Other areas to stream revenue will come from department consolidation, such as Information Technology and tuition increases. Wood said an 8 percent tuition increase will be necessary to offset UNM’s budget deficit and maintain the University’s research institutions. He said $8.1 million could be secured for the University if it raises tuition. “The president is on board,” Wood said about the pension plan. “But there must be a tuition increase.” Today, the ERB measure will be presented to UNM President David Schmidly, who would receive the 1.75 percent cut. University spokeswoman Susan
“I never thought I would be saying this, but the administration came through for us.”
“I’m just as surprised as you all are.”
“I like it, but if it doesn’t pass why not increase our salaries now?”
“I’m stunned.” “If it happened I would be surprised and pleased.” “It’s really important that we think about the University together.” Taken from Tuesday’s Faculty Senate meeting during the open-comment portion
Professor’s pockets fund student projects by Alexandra Swanberg aswanny@unm.edu
How certain is professor Howard Kraye that his students have a keen business sense? Fifteen hundred dollars certain. Kraye gives students in his “supply chain management and operations management” class $1,500 of his money to develop a business that can manufacture, market, sell and distribute a product. Kraye said he never asked the University for the money, because if students were going to be invested, he needed to be invested, too. “I tell the students it’s an ‘A’ or an ‘F,’” he said. “There’s no in between. I want them to know that I’m at risk, too.” Success requires that students at least pay back the startup funds. In previous semesters, profits were donated to a charity of the students’ choosing. Last semester, students raised $27,000, helping UNM exceed its $1 million United Way goal. This year, after students said that
Inside the
Daily Lobo volume 115
issue 120
keeping profit would motivate them to make more money, Kraye decided to allow students to retain profit as long as they donated at least $500 to charity. “What I explain to them is that students today, despite all the negative things that we hear about them, are much brighter, much more capable than previous generations,” he said. “The difference is we haven’t challenged them. If you give them a challenge where if they don’t succeed they pay a penalty, they respond. We just don’t push them.” The education system, Kraye said, is set up for students to be sponges, absorbing information to regurgitate on tests or papers. He said the class allows students to turn ideas and skills at Anderson into financial success elsewhere. So far, Kraye said, students have been successful. He hasn’t lost money. This practical, not theoretical, class
see Pockets page 3
Mckinsey said she sees no reason why he would not pass the recommendation on to the regents. “Covering the 1.75 is called the ERB swap,” she said. “It’s our intent, in our proposal, to do that. The final say will be with the regents.” McKinsey said one legal obstacle could stall the measure. New Mexico tax lawyers should give the final go-ahead for the ERB plan before the regents meet Monday. There they will hear final budget recommendations from oncampus cost-containment groups and determine a final budget. The regents have until April 18 to send a final budget to Santa Fe. “It looks positive, but we won’t have a final say,” McKinsey said. “They are talking to state tax lawyers to make sure we are on legal ground.” Some faculty members were surprised at the olive branch the administration extended, especially after years of tension between the two groups. The Faculty Senate in February 2009 voted “no-confidence” in Schmidly. “I am surprised and pleased,” professor Margaret Connell-Szasz said. “I don’t think my opinion is different from most people. Most faculty agree with it.” John Rask, UNM Government Relations spokesman, said the state government is exploiting public workers through ERB. “(Faculty) should all be outraged,” he said. “You are being individually cached to make up the general budget for the state. That should probably be propagated amongst the faculty.” Wood told more than 60 faculty members at the meeting he was surprised at the administration’s position to help out. “This is not something we went to bat for,” he said. “The administration came up with this.”
A WALK IN THE PARK
Junfu Han / Daily Lobo Jacob Nelson swings at a pitch against Binghamton on Tuesday night. The Lobos took game one of a two-game series against the Bearcats 16-2. See story page 5.
Where are we?
Pickled Dilbert
See page 2
See page 7
TODAY
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