Serving the High Plains
Serving the High Plains
The Mesalands Community College board of trustees during a special meeting Thursday night approved an insolvency plan that imposes progressively deeper pay cuts for higher-earning employees and cuts some programs for the financially distressed college.
The board also approved a request of $4.7 million in state emergency funding to carry Mesalands through the end of the fiscal year in June after officials recently learned the college had only enough money to cover one more payroll period.
The insolvency plan initially proposed a 2% pay cut for staff earning between $35,000 and $50,000, but board members balked on that. They agreed to not cut pay for those lowest-paid employees and approved the plan with only that change.
The rest of the plan imposes a 5% pay cut for employees earning between $50,000 to $80,000; a 10% pay cut for staff earning $80,000 to $110,000; and a 15% cut for anyone earning over $110,000.
Board member Phillip Box proposed even deeper pay cuts for higher-paying positions, including 30% for the top end. Fellow board members voiced no support for that. Several executive staff members also said that would lead to employees leaving the college and Mesalands being unable to replace them because the pay would be too low.
“You might not have people work here,” chief financial officer Blanca Pauliukevicius said.
Chief of staff and assistant to the president Duane Brooks, who oversaw much of Thursday’s meeting, said staff and faculty were informed of the insolvency plan.
“We’re trying to avoid layoffs and furloughs,” he said.
The insolvency plan also:
— Imposes a hiring freeze;
— Eliminates low-enrollment or inefficient programs;
— Eliminates golf and cross country from spring sports programs;
— Requires executive staff to teach at least one class for free;
— Eliminates travel or reimbursement of personal vehicles;
— Consolidates contracts;
— Requires an audit of supplemental contracts;
— Imposes administrative changes;
— Requires weekly and monthly financial reports to the state.
Brooks said the board must meet with New Mexico Higher Education Department officials next week before receiving the state’s emergency funds.
Brooks laid out the dire financial condition of Mesalands without the emergency funding: “We have one more payroll period left, that that’s it. We have no more money.”
Mesalands President Gregg Busch, whom the executive staff, faculty senate and staff senate issued a no-confidence vote earlier in the week, did not attend the virtual meeting. Because he was not present, the college could not begin the insolvency plan immediately. The board scheduled another special meeting for Feb. 14 to take action on that matter.
In a letter to the board, Busch said he was out of town on paid medical leave for COVID-19 and complications from Parkinson’s disease.
Busch stated he had an insolvency plan that had a “more fiscally sound approach” that wasn’t considered. He also said he wanted “a right to respond” to the “false allegations,” but his attorney also was out of town and unable to present one.
The executive staff, faculty senate and staff senate during their no-confidence votes each gave details on Busch trying to keep the college’s deteriorating finances secret amid threats of firing them if word leaked out.
Brooks said Busch created “a hostile work environment” by yelling at, bullying and threatening workers.
He also said Busch disregarded warnings from the state and several chief financial officers about the college’s declining finances, refused to share that information to all members of the college, imposed salary increases in early 2022 without consulting with the state and “blatantly” exceeded Mesalands’ appropriations budget.
The board also this week will discuss one section of the plan involving the Mesalands Community College Foundation. Board Chairman Jim Streetman said that part wasn’t in the board’s packet, and he wanted more clarity before proposing action on it.
More information about Thursday’s meeting will be in the next edition of the Quay County Sun.