2-09-2025 11:11am

New Mexico Legislators and AG Tackle University Fiscal Accountability

Chris Edwards Editor

AlamogordoTownNews.org

A proposed state constitutional amendment is on the agenda as the New Mexico Legislature is working on bringing more accountability to the New Mexico university and community college systems. A joint resolution between house and senate leadership speaks to the issues. As an example of issues in November, Western New Mexico University’s former president stepped down amid improper spending allegations and improprieties. With the president's departure the board of regents approved a nearly $2 million buyout. Much of the proposed legislation is hoped to clean up these problems and create more university oversight and accountability as per a press release from New Mexico's attorney general.

Attorney General Raúl Torrez, joined by cosponsors – Senate Finance Chair George Muñoz and Speaker of the House Javier Martínez and introduced a transformative higher education reform package, including a proposed constitutional amendment and enabling legislation, to increase transparency and accountability, and reinforce the essential fiduciary responsibilities of university administrators and Boards of Regents.

This proposal seeks to confirm the fiduciary duties of Boards of Regents in Article 12, Section 13 of the New Mexico Constitution ensuring they uphold the highest standards of governance, including undivided loyalty, due care, prudent administration, and compliance with institutional policies and state law. Additionally, it clarifies grounds for removal allowing either the Attorney General or a majority of the members of a Board of Regents to seek removal in district court.

“New Mexicans take great pride in our universities, and we must ensure that public dollars meant to educate students are not wasted or misused,” said Attorney General Torrez. “This legislation is about reinforcing trust in our institutions—ensuring that financial decisions are made responsibly, contracts are fair, and those in leadership are held to the highest standards of accountability.”

“New Mexico’s students, faculty, and all who work at our colleges and universities are counting on us to make sure our public higher education dollars are well spent,” said Speaker Martínez. “This legislation will strengthen oversight so that those at the helm of multimillion-dollar educational institutions know their responsibilities and will be held accountable if they violate them.”

“Universities are the backbone of our communities, and we have a duty to ensure they are managed with integrity and transparency,” said Senator Muñoz. “This legislation will help safeguard taxpayer dollars and ensure that our higher education institutions remain accountable to the students and families they serve.”

In addition to the constitutional amendment, the enabling legislation introduces critical legal and financial safeguards:

A Statutory Cause of Action for Breach of Fiduciary Duty –Strengthens and clarifies legal accountability for Boards of Regents community college boards, and senior administrators, expressly granting the Attorney General standing to bring civil suits for breach of fiduciary duties, and authorizing courts to fashion legal and equitable remedies sufficient to address alleged financial mismanagement.

Stronger Contract Oversight –Requires Board of Finance review for administrator contracts exceeding five years or a total compensation value exceeding ten times the lowest-paid regular full-time employee’s salary. Additionally, contracts containing liability releases or indemnity provisions must receive prior approval from the Attorney General.

Annual Reporting Requirements –Mandates that institutions report administrator contracts to the Attorney General and Secretary of the Higher Education Department annually, ensuring continued oversight and transparency.

This legislative package responds to growing concerns over mismanagement, excessive compensation, and lack of oversight, highlighted by the recent reports and resulting litigation instigated by the New Mexico Department of Justice related to Board decisions involving former Western New Mexico University president Dr. Joseph Shepard. By codifying fiduciary duties and strengthens enforceable legal remedies, this initiative safeguards public trust and reinforces the student-first missions of the state’s colleges and universities.

Constitutional Amendment

Legislation