Garrey Carruthers
Garrey Carruthers

LAS CRUCES >> College and university presidents across the state are endorsing a new way of funding their schools.

The model would encourage legislators to fund colleges and universities based on the previous year's allocations while also providing incentive, performance-based funding that rewards different types of schools for meeting their different missions.

Multiple university presidents said all two- and four-year schools in the state have endorsed the proposal.

"For the first time I've seen agreement among all sectors, which in itself is monumental," Western New Mexico University President Joseph Shepard said.

Meanwhile, the state Higher Education Department has proposed a model that would require colleges and universities to put a certain percentage of their budgets "at risk."

The impetus

New Mexico recently changed its funding guidelines, axing a formula that required 125 worksheets to calculate allocations and creating a simpler, outcomes-based model that aims to differentiate between research universities like NMSU, "comprehensive colleges" like WNMU and community colleges.

The current model moves toward outcomes-based, performance-driven funding but doesn't go all the way in differentiating among the types of schools, presidents across the state said.

"I think most presidents think it does a weak job," University of New Mexico President Robert Frank said.

It's also complicated, presidents said. Carruthers labeled the model "kind of bizarre" and "confusing to anybody in the world."

A team of NMSU administrators developed the model, including Carruthers, Provost Dan Howard, Regents Professor Jim Peach, government liaison Ricardo Rel and chief financial officer Angela Throneberry.

The proposal

What the NMSU group proposes and the Council of University Presidents has endorsed, is relatively simple: Universities will receive the funds they were allocated in the previous year, plus additional dollars based on their missions.

Research universities -- NMSU, UNM and New Mexico Tech -- would receive their previous allocations, plus $5 per completed student credit hour, 1 percent of total research dollars and between $500 to $2,5000 for degrees awarded, from bachelor's degrees to Ph.D. degrees to STEMH degrees.

NMSU, for example, received $113 million this year in allocations, the so-called "base" funding it would receive next year. The university would also receive:

• $1.5 million, 1 percent of its research funds

• $2 million for completed student credit hours

• $1.3 million for bachelor's degrees awarded

• $861,000 for master's

• $250,000 for Ph.D.'s

• $1.1 million for science, technology, engineering, math and health degrees

• $657,500 for low-income students' who earn degrees

Those funds amount to more than $7.6 million, an increase of 6.8 percent over this year, Carruthers said.

"That 6.8 percent in funding would be like Christmas all year long," he said.

Comprehensive universities -- ENMU, WNMU, Northern New Mexico College and New Mexico Highlands -- would receive dollars for dual credit, degrees awarded and when students complete 30 or 60 credits.

Community colleges would receive money based on dual credit, student credit hours, certificates, associate degrees and when students complete 30 credits.

The model doesn't include allocations for construction and renovation projects. It would merely be for "Instruction and General" funds, which go to salaries, supplies and expenses related to instruction, academic and institutional support, student services, operations and maintenance.

The proposed model would not need to be made into law and would merely serve as a guideline for legislators, Carruthers said.

The "base" budgets will also still be adjusted for salary and energy cost increases, likely every other year, Carruthers said.

The debate

The Higher Education Department is considering "several changes" to the funding formula, including requiring colleges and universities to put a percentage of their budgets into a pool, HED Deputy Cabinet Secretary Glenn Walters said.

The presidents say the talked-about "at-risk" percentage has been 5 percent, though Walters said it has not been determined.

If 5 percent, $7.5 million of NMSU's budget would be at risk, Carruthers said.

"It's inherent in the title of it," he said.

HED is discussing its proposal with college and university presidents today and has not released it.

"You just can't go in and put together a budget not knowing if it will be $26 million or $24.7 million," ENMU President Steven Gamble said.

A performance-driven model is already putting funds at-risk, Shepard said.

Despite the "at-risk" differences, the two proposals are largely the same, he said.

"In both senses it is outcome-, performance-based," he said. "There's some difference in details, but it's a lot in common."

Proposed model

The proposed funding formulas include the schools' previous year budgets as a guideline, plus:

Research institutions (NMSU, UNM, NM Tech)

+ 1 percent of total research funds

+ $5 per student credit hour completed

+ $500 per bachelor's of arts awarded

+ $1,000 per master's of arts awarded

+ $2,500 per Ph.D. awarded

+ $1,000 per science, technology, engineering, math and health degree awarded

+ $500 per at-risk degree awarded

Comprehensive institutions (WNMU, ENMU, etc.)

+$5 per student credit hour completed

+ $250 per associate degree

+ $500 per B.A.

+ $1,000 per M.A.

+ $1,000 per at-risk degree

+ $1,000 per STEMH degree

+ $100 per student who finishes 30 credit hours

+ $250 per student who finishes 60 credit hours

Community colleges

+ $5 per student credit hour completed

+ $5 per dual credit hour completed

+ $200 per certificate that requires more than a year of study

+ $250 per associate degree

+ $500 per at-risk associate degree

+ $500 per STEMH associate degree

+ $5100 per STEMH certificate that requires less than one year of study

+ $100 per student who finishes 30 credit hours
