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Alternative Budget Cuts

We believe that it is possible to offset the drastic cuts to programs and necessary
instruction as well as the rise in tuition. Given full information on the Northern New
Mexico College operating budget, you as Board Members will likely find more possibilities.
We urge you to make moral choices that reduce the overspending in non-instructional
sectors of the budget.


I. Administrative Salaries

A. 10% cuts to Executive Team Administrative Salaries for 2014-2015 (seven
members of Executive Team minus their assistants total $786,007.25). Savings to
budget of approximately $78,600

B. In addition, please see attached spreadsheet for raises to Administrative salaries, many
showing increases of over $5,000-$10,000 in one year. These raises were granted as
members of the staff and faculty were furloughed, courses and programs cut. In a single
year, Administrative spending increased by $1,054,015.59 (see attached).


II. Cut number of Administrators and Administrative Assistants

A. See attached spreadsheet showing new Administrators and Administrative Assistants
added in 2013. Approximately fifteen new Administrators have been added, many who
overlap in duties. (More may have been added since the release of salaries in December
2013. We urge the Board to request a list of current 4/2012 salaries for comparison of
positions and salary amounts.) Listed are the Administrators with overlapping duties.


III. Examine and Disallow all Net Transfers Out of the I&G Budget

As you recall from the presentation given by Domingo Sanchez III at the Finance Committee
Meeting of 4/22/14, over half of the budget for Instructional and General Expenditures has been
transferred out of the I&G budget to pay for what Mr. Sanchez termed auxiliary expenditures.
Over half of the I&G budget was transferred to cover athletics, internal services (such as
executive phones and computers), building repair and replacement, equipment repair and
replacement.

Further, it is commonly held that we cannot take out of capital outlays to fund general or
instructionalmeaning that there is an inviolable barrier between the two, funds for buildings,
etc. must be separate from Instructional. However, at the Finance Committee Meeting of
4/22/2014, Mr. Sanchez explained that he wrote off outstanding capital debts against I and G.
Such a violation of the barrier between Instructional funds and capital outlays must be more
closely examined.

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In all, if such transfers out of I&G were disallowed and the accounts benefiting from such
transfers were made to stay within their budgets, we would not have a crisis in Instructional for
funding any of our programs. I&G would have more than 50% more money with which to
operate than it has had in the past fiscal year. There would be no crisis in terms of courses
offered, or program cuts if transfers out of I&G were disallowed. (Per presentation at Finance
Committee Meeting 4/22/14)


IV. Athletics

Kept to its Legislative appropriation with no additional transfers from I&G = approx $ 260,000


V. Reduce the motor pool

In 2012 and 2013, additions to the motor pool included new sedans driven by Administrators as
well as buses used for mens athletics.


VI. Freeze Administrative Travel

Domingo Sanchez III listed this as a possibility for reducing spending during the Finance
Committee meeting of 4/22/2014.


VII. Trace Changes in NNMC and Northern Foundation Assets

We urge the Board to trace missing assets from the tenure of President Griego to President
Barcel. For instance, in the Asset Statement from 2008, NNMC showed $5,514,176.00 in assets
at the College, including CDs and $2,984,375.00 in assets at the Foundation. The 2008 total of
NNMC College and Northern Foundation assets in 2008 was $8,498,951.00.

By 2013, this amount has reduced to $3,361,139.00

This represents a loss in cash and cash equivalents of $5,137,812.00

See balance sheet next page, from 2008 New Mexico State Auditor Report, pg. 27
Full Report:
http://www.saonm.org/media/audits/963_Northern_New_Mexico_Community_College_FY2008
_0.pdf

See balance sheet next page, from 2013 New Mexico State Auditor Report, pg. 24
Full Report:
http://www.saonm.org/media/audits/963_Northern_New_Mexico_Community_College_FY2013.
pdf

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2008 New Mexico State Auditor Report (pg. 27)
2013 New Mexico State Auditor Report (pg. 24)