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BUFFETT'S BULLET #95
April 3, 2006

What is Happening at UNM?

During the last three years Gov. Richardson has appointed three of the most astute old-time politicos in New Mexico to the University of New Mexico's Board of Regents. They are Jamie Koch, Mel Eaves, and Ray Sanchez. These are old-time Democrats, not a carpet bagger among them. They have gone to the University of New Mexico and have made their fortunes in this state. They have lived here, along with their families, since school. Not one is a "trust funder." All are New Mexicans who have worked many years for the Democratic Party.

Jamie Koch from Santa Fe played varsity football in 57-59 for UNM and was a member of the Kappa Sig fraternity and graduated in 1959. Jamie is now part owner of the Jack Daniels Insurance Company, the largest insurance company in Santa Fe. He has been the general manager for over twenty years. This agency sells more insurance than any other company to state government, plus for any businesses doing work for state agencies in New Mexico, e.g. road contractors, building contractors. For years they have sold insurance to the Maloof Enterprises. The Jack Daniels Insurance Company is a part of the Jack Daniels Insurance Company of Hobbs, which is older and formerly owned by the father of our current Lt. Governor, Diane Denish. Jack Daniels was the Democratic opponent when Pete Domenici was first elected to the US Senate in 1972. Jamie has also been Democratic state chairman and has served two terms in the state legislature.

Ray Sanchez, a native from Belen, was a member of the Sigma Chi fraternity at UNM, graduated from UNM in 1964, and then from UNM Law School in 1967. Then Raymond was elected a delegate to the New Mexico State Constitutional Convention in 1969. After that he was elected to the New Mexico House of Representatives in 1970. Ray Sanchez, a trial lawyer, served 30 years in the House and was elected Speaker and served 16 years in the highest office in the House of Representatives, longer as Speaker than anyone else in the history of New Mexico. During that time he strongly supported the unions and the trial lawyers.

Ray Sanchez is a very political person. He is still receiving awards and prestigious appointments. I have a pamphlet of his from '88 that listed two and one-half pages of awards, experiences, accomplishments, and local and national offices. He had a total of 40 in all. There is even a very large community center on North 4th Street in Albuquerque called the Raymond G. Sanchez Community Center.

Which brings me to this: Why was Ray not in the forefront in the firing of Louis Caldera, the recently fired UNM president? It's not like him to let anyone else take center stage. Most people do not even know that Ray is on the UNM Board of Regents. No pictures or quotes have been in the newspaper.

In the last year that Ray served in the legislature he sponsored a constitutional amendment to consolidate the city of Albuquerque and Bernalillo County. We have voted on this a couple of times. It is a politicat mess! The voters just keep voting it down, but the Democratic wheels want consolidation set up so that it gives their party control of the entire county for a very long time.

Raymond Sanchez is now lobbyist for the Horsemen of New Mexico (race horses) and others. He was elected by Democrats to be their National Committeeman for New Mexico.

Mel Eaves attended UNM Law School and graduated. Recently, he was President of the Eaves, Bardacke, Baugle, Kierst, and Kiernan taw firm, one of the largest and most successful trial law firms in New Mexico.

Louis Caldera, former President of UNM, a Hispanic from California, had graduated from West Point and Harvard. Caldera served as Secretary of Army under President Clinton (was never asked to give jobs to interns), was Vice-Chancellor of the California State University system. He was appointed two and half years ago to be President of UNM for a term of four years. He got fired!

According to three different New Mexico newspapers, here is what Caldera was given by the UNM regents to resign as President. This job as President only had one and half years left on the contract.

Even after this resignation, he can return to UNM after July 2007 as a "tenured" faculty member of the UNM law school as a full professor as long as he teaches two courses per semester. Before that, Caldera will get $440,000 for 18 months plus any increase percentage that the rest of the faculty gets on July 1, 2006. Also, $90,000 in deferred compensation, $2606 in storage fees for his furniture, plus $30,000 for moving up to twice after he vacates his UNM residence by July 1st. $1,360 for his phone and e-mail expenses, $14,400 for automobile allowance for 18 months. UNM will pay $139,474 for his military retirement credit for him. UNM will pay $29,345 in retirement contributions through 2008. Life insurance for $500,000 will be paid for one year. And his medical insurance will be paid for a year, along with his country club fees through August 31, 2006. The state will also pay his reasonable attorney fees that he incurred. This agreement was only 15 pages long and required that both sides of the agreement not say anything bad about the other parties to the agreement. So as my Swedish grandfather would say, "For Caldera, silence is golden."

When Caldera comes back in 2007 and spends one year at the law school, he will be eligible for the University's retirement plan. It just keeps getting better.

Very little has been said by Caldera before he quit. It was reported he said that he wanted to raise the admission and grading standards of UNM. What's wrong with that? But what else did he do to get the axe?

Could Caldera have believed in the West Point oath when he joined the US Army? Duty. Honor. Country. Maybe he is one that still follows it in his own personal life.

Was Caldera objecting to Gov. Richardson putting political people in important positions at the University? e.g., Harris, Biemer, and Sparks and probably saw that a lot more of Gov. Richardson's political appointees were coming down the road from Santa Fe, just the same as what is now happening in state government.

Was Caldera objecting to Gov. Richardson naming the new hospital at UNM after himself and wife Barbara instead of UNM finding someone to donate $5 million or more to the school for that honor as it is done at other schools?

Governor Richardson has been signing three year contracts for unions for 9,900 state workers, according to the Albuquerque Journal article (dated 2-02-06). Was Caldera objecting to Richardson and the unions wanting the same for UNM hourly workers, knowing it would destroy the school's budget and make managing it impossible?

Was Caldera objecting to a new way for construction contracts to be written for UNM now when it said the hiring for the contractors' employees for the new hospital had to go through the union hiring halls? It made the contractors furious and some refused to bid on the contract. Caldera would know that the hospital would cost more and we would be getting less of the taxpayer's money.

Was Caldera objecting to the regents getting in on the actual hiring instead of just setting policy and leaving the hiring to the administration like they do at most schools?

Was Caldera objecting to the old culture of New Mexico kickbacks returning to the University of New Mexico? All this after the regents and the Albuquerque newspapers were saying that we need a President that understands our culture.

If you look at the headlines of our newspapers, the culture could be:

Kickbacks, Payoffs, Drugs, and DWI

Right now the UNM system has about the same total number of employees as state government but these employees are not spread over the whole state. Just think what possibilities there are here for helping the political followers of one party. It appears that this would cause the UNM system to become as messed up as the Albuquerque Public School system.

Do you know that before the 70's, Albuquerque had a pretty good school system that was not on the front page of the newspaper every week, run by non-political business people of the city. Not by the teacher's unions and the Democrats in the Albuquerque Chamber of Commerce. Now we just have people that want to make a name for themselves, so they do what the unions want, including buying a $12 million new office building and $500,000 toilets. The business people elected before were S.Y. Jackson, Nicolai, Stromberg, Darrow, etc; people who wanted a good school system to educate our future citizens and help our teachers, not a political system to support a political party that we have now.

Sincerely,

George D. Buffett


P.S. I think that Ray Sanchez is taking political control of the University with the Governor's OK.

As Manny Aragon did with Highlands University in Las Vegas, Ray will not use the job to go visit India, but will use the position to control all governments in Bernalillo County. Remember, Raymond Sanchez is the Democratic National Committeeman. He needs something to control. He doesn't have the legislature any more to control and influence state government. He needs a political base! With 20,000 employees at UNM and their families, that will give him the political base he needs.

If after a few hours of considering all that I've outlined - you may want to copy this for your friends. New Mexico voters deserve to know what's going on at their largest university. I doubt if the media will ever talk about this political development and the sly grab for power.

Paid for by George D. Buffett Committee

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