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NMSU Board Of Regents Approves Employee Benefit Cuts

With looming Budget Shortfalls, New Mexico State University’s Board of Regents has approved Employee Benefit Cuts.

NMSU’s Employee Benefits are being cut in an effort to balance the budget.

Chair of NMSU’s Board of Regent’s Debra Hicks says these cuts are part of the ongoing effort to offset cuts in funding.

“From the reductions in funding that we have been mandated by the state of New Mexico,” Hicks said. “We are having to right size the ship. What we are looking at is somewhere in the neighborhood of $10.1 million dollars in reductions, but based on our enrollment data coming forward for this year and next year’s projections, we’re looking at $12.1 million, so coming to a point where we can actually right size the ship

The employee benefit cuts include reducing annual leave, eliminating retiree health coverage for new employees, and cutting sick leave payout benefits, among others.

New Mexico State University President Garrey Carruthers says there was a lot of support for the plan.

“What was encouraging about the discussion on the employee benefit cuts,” Carruthers said. “Was we worked with the unions, and the employee council and they were satisfied that was the appropriate thing to do given the status of the university financially at the moment, and so they were very collegial and cooperative in working on those.”

NMSU Employees received a memo detailing the cuts.

For Employees hired before July 1st, 2016:

  • The sick leave payout benefit upon termination of employment or retirement eliminated, with the exception of employees who have acquired more than 600 hours of sick leave before July 1st, 2016.
  • The Annual Leave accrual Benefit will be reduced from 22 days to 20 days.
  • Beginning June 30th, 2017, up to 240 hours of accumulated annual leave can be carried forward each July 1st. A change from the current deadline of September 30th.

For New Employees hired on or after July 1st, 2016:

  • Retiree health coverage will not be provided
  • The sick leave payout benefit will not be provided.
  • Annual leave days will follow a schedule based on years of employment.
    • 12 days for 1st 4 years.
    • 17 days for 5 to 9 years.
    • 20 days after 9 years.
  • No Insurance benefits will be offered for part- time employees working less than 75% of the time of Full Time Employees.

Regents Chair Debra Hicks says many of the cuts decided on align more with benefits offered in the private sector.
“Those cuts really involve some key things,” Hick said. “For instance full- time benefits for part-time employees. When you look at industry, private world, most people don’t provide benefits with the exception of days off or something like that, so that made sense.”

Hicks says going forward they also need to look at how to increase revenues.

“The way that we increase revenue,” Hicks said. “Really key things, is enrollment increases, and retention increases, as well as reducing our write-off expenses, so those are key. They are not necessarily low-lying fruit, but if we increase enrollment, problem goes away, we increase retention problem goes away.”

At upcoming meetings, Regents will be looking at further budget cuts and a plan to require first-year students to live on-campus.

Samantha Sonner was a multimedia reporter for KRWG- TV/FM.