Solvency plan by MCC cuts pay, programs

The Mesalands Community College board of trustees, acting without its embattled president, approved a solvency plan that imposes progressively deeper pay cuts for higher-earning employees and cuts some programs for the financially distressed college.

The board during its special meeting Thursday also approved a request of $4.7 million in state emergency funding to carry Mesalands through the end of the fiscal year in June. Officials there recently learned the college had only enough money to cover one more payroll period.

The action followed a one-hour closed executive session.

The college’s financial woes weren’t publicly known until the executive staff last week issued a news release about it and announced a no-confidence vote against Mesalands President Gregg Busch, who was absent from Thursday’s meeting. The faculty senate and staff senate also took no-confidence votes last week against Busch and the board of trustees and criticized them both. (See other story in this edition.)

The solvency plan initially proposed a 2% pay cut for staff earning between $35,000 and $50,000, but board members balked. They agreed to not cut pay for the lowest-paid employees and approved the plan with only that change.

Removing the 2% pay cut for the lowest-paid staff would be “insignificant when we’re talking millions here,” board member Tom Sidwell said.

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 advocated for deeper cuts to higher-paying positions, including 30% for the top end. His colleagues voiced no support for that.

Several executive staff members also said that would lead to employees leaving and Mesalands being unable to replace them because the pay scale 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 solvency plan.

“We’re trying to avoid layoffs and furloughs,” he said.

Brooks added that employees didn’t like the plan, but the consensus was “I’d rather do this than not have a job at all.”

The solvency plan also:

— Imposes a hiring freeze;

— Eliminates low-enrollment or inefficient programs;

— Eliminates golf and cross country from spring sports;

— 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 this week before receiving the emergency funds.

Brooks laid out the poor financial condition of Mesalands without emergency funding: “We have one more payroll period left, that that’s it. We have no more money.”

Busch in a letter to the board stated he was on paid medical leave. Because Busch was not present, the college could not implement its solvency plan immediately. The board scheduled another special meeting scheduled for Feb. 14 to take action on that matter.

The board this week also 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 action on it.

On Saturday, the college in a news release issued “a declaration of resolved commitment” to Mesalands students.

It stated that “staff, faculty, and executive staff have resolved themselves to ensure the success of its students and stand behind their no confidence votes,” it read. “Regardless of who is in leadership, the success of the student and College operation to serve the student, is always the primary responsibility of its governing body and leadership.”

The news release listed the actions taken so far in an effort to stabilize Mesalands’ finances.

Mesalands remains one of Tucumcari’s biggest employers.