Lawmaker grills university president on 'lavish spending'

Dec. 13—A budget presentation Wednesday at the Roundhouse turned into an interrogation of Western New Mexico University President Joseph Shepard following a report of "lavish spending" by the school on the taxpayers' dime.

Sen. Siah Correa Hemphill, a Silver City Democrat whose district includes the university, turned up the heat on Shepard when he appeared before lawmakers on the Legislative Finance Committee in his capacity as chair of the Council of University Presidents.

"There have been a lot of reports of lavish spending, and that is alarming — $100,000 on trips [in the last five years] to Zambia, Spain, Greece and other countries and $27,000 on furniture, just to name a few," she said.

"Our job is to ensure there's no misuse of taxpayer money on behalf of students and their families, especially when they're experiencing a 3% increase in tuition, and on behalf of taxpayers who are paying for that tuition increase" through the government-funded Opportunity Scholarship, she said.

Correa Hemphill, a Western New Mexico alum whose husband works in its marketing and communications office, said she had "a few questions" triggered by a recent report by Searchlight New Mexico, which reported the university spent nearly $100,000 on international travel and at least $27,740 on high-end furniture at Santa Fe's Seret and Sons to furnish Shepard's campus residence.

On several trips to recruit international students, "Shepard has been accompanied by other university executives, as well as members of the WNMU board of regents and his wife, former CIA operations officer-turned-author and congressional candidate Valerie Plame. All have traveled on the university's dime," Searchlight New Mexico reported.

Western New Mexico has an enrollment of about 3,500 students.

After the report was published, the state Higher Education Department sent Shepard a letter asking for a "full justification of expenditures."

Specific areas of concern outlined in the letter include:

* "Potentially unjustified international travel to Zambia, Spain, and Greece for student recruiting purposes."

* The potential use of public funds to pay for Plame's travel-related expenses, "as well as an expense account which she regularly files for reimbursement from."

* "Potential use of university employees for cleaning and cooking duties at the President's residence."

* The purchase of "luxury" furniture for the president's home. "The basis for this allegation is that the purchases are overly lavish and expensive items, not indicative of what a prudent person using taxpayer funds would normally purchase."

In a brief interview after appearing before lawmakers, Shepard said the spending is under review internally and externally.

"We have our auditors going through it, we have the state auditor going through it, and that's appropriate," he said. "It's all about accountability, so we will do our due diligence. Our board will do [its] due diligence."

He also said the public reaction to the university's spending has been mixed.

"Some obviously want to know more. Some obviously are very supportive of the university and all the great things we're doing," he said.

Asked whether he would do things differently in hindsight, Shepard said he followed all of the university's policies and procedures.

"What I have done in the past I don't have any issues with because they're all within the guidelines of the university," he said.

Shepard said he didn't have second thoughts about the furniture purchases, either.

"No, because those purchases provided the quality and the warmth to the president's residence," he said. "It's not my furniture. It's not my home. It's the university's residence."

Correa Hemphill said in an interview she was "very concerned about the possibility of misuse of taxpayer money" after the report was published.

"I believe that as the appropriating body, we need to be really, really accountable to the taxpayers," she said. "We have not historically had this level of funding and we want to make sure that when we're appropriating money to our public institutions, it's being utilized in a way that has a focus on those who need it most: the people of New Mexico."

Based on the report, Correa Hemphill said, "it does seem like there may be some inappropriate use of taxpayer money." She noted the Higher Education Department is looking into the expenditures and said she's been contacted by the State Auditor's Office.

"We will look into it more ... so we'll find out," she said.

During the legislative meeting, Correa Hemphill fired off a series of questions and asked Shepard to keep his answers "short and concise" out of respect for her colleagues, who have been meeting in Santa Fe since Monday.

Correa Hemphill's questions included what the policy is for issuing non-government employees a taxpayer-funded procurement card, known as a "P card."

Shepard said the policy allows "some exceptions" for private citizens to obtain such a card.

"So for example, at our university, one of those exceptions would be the first lady of the university, which is my wife," he said.

Correa Hemphill also asked Shepard what type of airline seats were purchased for him, his wife, faculty and regents on the international trips mentioned in the report.

"It would be business class," Shepard replied.

"Have first-class tickets ever been purchased for you, your faculty, your spouse or your regents?" Correa Hemphill asked.

"For international, yes. For domestic, no," he said. "There was a time when, for example, I would purchase an economy class and I might upgrade it. I believe there might have been one or two incidents where, because the card on file was the university card, in my upgrade, it'd go to that, but then I'd reimburse the university."

Correa Hemphill questioned whether Shepard violated state policy.

"You didn't use your personal credit card [to purchase the] first-class tickets and then request reimbursement for the base fare. You used taxpayer funds and then you sought proof of that reimbursement," she said. "I'm not sure that that's in compliance with the state Use Act and the procurement code and policies and procedures, but maybe we could check on that.

"Just for the record," she added, "when using taxpayer funds, airfare should be the lowest fare available, according to the New Mexico travel policies and procedure."

Correa Hemphill also questioned Shepard on the type of hotels rented during the international trips and whether incidentals, mini bar expenses or room service were charged to the university.

Shepard said the type of hotels varied "based on the safety and location or the recommendation of the host institution."

"They range," he said. "I recall in Zambia staying in a hotel — I'm trying to recall if it had a cement floor — but suffice it to say, it was a very, very basic hotel."

Asked how many international trips he had taken over the last five years, Shepard said he didn't recall the total number.

"Most recently went to Serbia and Belgrade. Prior to that, of course, Mexico, a number of trips there. You mentioned the Spain, Greece trip. The Zambia trip. Gone there once," he said, adding he could provide a full list afterward.

As reported by Searchlight New Mexico, Shepard the university has not conducted a formal cost-benefit analysis of the trips.

Shepard, who has served as university president 12 years, had his contract extended last year through 2027.

The contract calls for Shepard to receive a base salary of $365,000, which increases by the same average rate as faculty salaries over the prior year, plus a $50,000-a-year retention bonus. It also calls for university to provide Shepard a residence, which is insured and maintained, including utilities, at Western's expense, as well as a $2,000-a-month vehicle allowance.

Shepard also is entitled "to all normal and customary fringe benefits" available to university staff, such as sick leave, retirement and medical and dental insurance.

"The University shall pay 100% of the premium for the customary family health insurance," the contract states. "Further, the University shall pay 100% of the employee portion of the standard retirement contribution and 100% of the University portion."

Shepard earns 16 hours a month, or 192 hours a year, in annual leave under the contract.

Follow Daniel J. Chacón on Twitter @danieljchacon.