New Mexico AG files motion to halt $1.9M buyout for WNMU president

SILVER CITY, N.M. — New Mexico Attorney General Raúl Torrez filed a motion to halt a $1.9 million buyout for the departing president of Western New Mexico University.

Joseph Shepard stepped down as president of WNMU after a state audit found he spent $316,000 of university money on lavish international trips, high-end furniture and other items over the course of several years. During the investigation, the state auditor’s office blamed university management and the WNMU Board of Regents for not upholding their responsibilities and enforcing travel rules. 

After this, the board approved a $1,909,788 buyout last month for Shepard.

AG Torrez argues the payment isn’t supported by Shepard’s contract and “is unconscionable as a violation of public policy and the public interest.”

“This payment is an egregious misuse of public funds and a betrayal of the Board’s responsibility to act in the best interest of the university and its students,” Torrez said in a statement Monday. “Dr. Shepard voluntarily resigned, and the Board had ample opportunity to negotiate a reasonable or no-cost separation agreement. Instead, they chose to pledge nearly $2 million in taxpayer money without justification or consideration of the public good.” 

The New Mexico Department of Justice is requesting the court temporarily block the $1.9 million payment before a hearing can happen. The NMDOJ is requesting the hearing be held before Jan. 15 – the deadline for the payment – or issue an ex-parte order until the hearing can be scheduled. They are also requesting the court prohibit the board from disbursing the payment until a special audit – requested by WNMU, the regents and Shepard – is complete and a report is available.

Shepard’s buyout is just one part of the board-approved separation agreement. The agreement also calls for Shepard to get $200,000 guaranteed for five years as a newly-tenured faculty member once he returns from an eight-month sabbatical. The sabbatical would begin the day he officially resigns. Then, when he returns, he will work remotely.

The agreement drew ire from Gov. Michelle Lujan Grisham, who sent a letter demanding the entire board step down. Before siding with the WNMU Faculty Senate in a unanimous vote of no confidence in the board, faculty senate president Phillip Schoenberg said he heard from the board president that the regents would comply with the governor’s order.

The faculty senate also called on the regents to rescind Shepard’s separation agreement.

New Mexico Higher Education Secretary Stephanie Rodriguez described the buyout as “gross negligence and mismanagement of taxpayer funds.” Her department is also investigating this.

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