Office of the President
Monday Morning Memo | January 26, 2009
Dear NMSU Campus Community:
The beginning of the legislative session is a natural time to talk about budgets, and with the current economic challenges everyone is facing, budget discussions are even more timely now. So, how will our university be impacted in this year's state budget discussions?
It is important to first consider our recent history here at NMSU. The university has operated in a sound, responsible manner. We have been conservative and careful with our resources, and we have maintained a reserve balance as required by the New Mexico Higher Education Department. We have a proven budgeting process in place that continually looks at all our current and projected revenues and expenses, and thanks to the leadership provided by our Budget Committee, we have open communication with representative components of our university.
As a result of this financial prudence and thanks to our growth in student enrollment and retention in recent years, our university is well-positioned to weather times of financial crisis when compared with many other institutions across the country and within the state. In fact, we feel we can turn to our reserves to cover any shortfalls of instructional and general (I&G) funding in the current fiscal year.
I&G funding supports the instructional mission of NMSU and is funded 60 percent from state appropriations. The instruction and general budget funds the academic departments, the Deans' Offices, the Library, the student services offices such as Admissions, Registrar, Financial Aid and Placement, the general administrative functions of the university, the operation and maintenance of physical plant, and related fixed costs such as utilities and insurance.
As part of our process, we also must look ahead in anticipation of the possibility of more limited resources, so I have asked our vice presidents and deans to consider a "what-if" scenario in which we would be asked to make a 2.5 percent cut in state I&G funding for the 2010 fiscal year. As always, our process works best when we seek input and foster discussion about any changes. We will certainly follow that model as we go through this exercise. At the same time, we will be looking at a strategic approach to central expense reduction that would help to lessen the impact on I&G operating budgets.
Of course, the university receives other types of state appropriation funding, principally including non-I&G state line item funding and capital funding. On non-I&G funding, colleges and other units are being asked to formulate and submit specific plans on how a cut would be handled under various potential scenarios. At this time, the university is not aware of any proposed cuts to NMSU capital funding.
Our central focus throughout this process must be our core missions of teaching, research and service, and we intend to proceed with as much discussion and collaboration as possible. We will provide regular updates to the campus throughout the legislative session.
Even as we consider possible budget shortfalls, we must retain our focus on the long-term strategic goals of the university and an important way of planning for the future is ensuring we have the proper infrastructure to meet the needs of our students.
A general obligation bond-issue election slated for February 3 seeks $20 million for a wide variety of expansions and acquisitions for NMSU-Doña Ana Community College (DACC) and Dual-Credit Programs for students of the three school districts in Doña Ana County.
Included is $12 million for Phase 7 of the East Mesa Campus; $4 million for Phase 3 of the Sunland Park Center; $3 million for facility renewal, minor capital outlays, land acquisition and development of various sites; and $1 million for technology and equipment acquisition to benefit both DACC students and Dual-Credit students of the three county school districts - Las Cruces Public Schools, Gadsden Independent School District and Hatch Valley Public Schools. Renewal of the bond issue will not increase the tax levy. It will continue to cost the owner of a home assessed at $150,000 about $4 a month in property taxes.
With current head-count enrollment topping 8,000 in credit courses at the two campuses and three satellite centers in the county, DACC is planning ahead for an increase of 50 percent in the size of the student body by 2020-2021, which will bring the total to nearly 12,000 students.
Bond issues are the principle method of funding such improvements, and we rely on our community for this support.
Have a great week!
Waded Cruzado
