Firing Fallout at New Mexico Highlands

Scrutiny is mounting at New Mexico Highlands University as the state auditor and higher education secretary demand answers in the aftermath of a wave of firings and claims of the board’s unethical behavior.

Since May 1, at least nine administrators and other employees have been placed on leave or terminated by the university with no explanation, though a lawsuit and a recent public statement shed some light on the situation. Amid the board’s silence, recently fired President Neil Woolf alleged in a whistleblower lawsuit that he was pushed out by the Board of Regents because he resisted the chair’s efforts to improperly divert state funds. (Woolf was put on leave in early May and then dismissed after he sued.)

Woolf accused Frank Sanchez, the chair, of directing him to steer $600,000 in state funds for a track facility at NMHU’s Las Vegas campus to a contractor, Jim Franken, who he alleged was a friend of Sanchez. Woolf’s lawsuit alleged that appeasing Sanchez and Franken could potentially result in additional appropriations for the university, since they have close ties to state senator Pete Campos who sits on the finance committee.

Campos—the former president of Luna Community College—is Sanchez’s bother-in-law and has longstanding ties to Franken, according to a review of public records. His company, Franken Construction, worked on a project at LCC in 2014 when Campos was president. Franken Construction has also donated to Campos and listed him as a reference in a bid for a recycling project at the University of New Mexico. NMHU also hired Franken Construction in 2008 to renovate a residence hall, but Sanchez was not on the board then.

But as calls for transparency have increased, the board still refuses to explain the recent exodus of employees, many of whom have accused them of malfeasance.

Demands for Transparency

A news release sent to Inside Higher Ed and signed by eight former NMHU employees alleged that the board has carried out a “sweeping, multi-department purge” since early May.

The signatories—which did not include Woolf—also flagged the former president’s concerns about Sanchez allegedly trying to steer money to Franken. They wrote that Woolf’s claim necessitates an investigation to “review how recent state appropriations were handled.”

But beyond the allegation of financial impropriety, the signatories allege that other board actions threaten to destabilize the university. They pointed to concerns about eliminating the government relations team, canceling a computer science graduate program with 60 enrolled students shortly before classes began, changes to housing policies that they alleged prioritize students at nearby Luna Community College, which has historically contracted with NMHU for residential facilities. They also alleged that board actions threaten to undermine recent enrollment growth, which increased 4 percent last fall to 2,741 students.

Signatories were Jessi Breitenstein, Dann Brown, Paul Grindstaff, David Lepre, Chad Mano, Johnny Montoya, Zach Settembre, and Vanessa Tenorio. Those signatories held a range of positions at the university such as provost (Brown), vice president for government relations (Lepre), and men’s head basketball coach (Settembre). Several were high-ranking administrators and many had been in their jobs for only a short time.

The group accused the board of being inconsistent with severance pay, alleging the majority “received nothing” and of stiffing employees on relocation expenses. They wrote that “navigating a sudden career transition is inherently difficult” particularly for those “managing vulnerable personal circumstances” such as the birth of a child, or dealing with “sudden housing displacement.”

New Mexico Highlands officials did not respond to a request for comment about the recent staff changes or the allegations against Sanchez. Inside Higher Ed also left messages for Campos, Franken, and three regents, none of whom responded to those inquiries before publication.

State Pressure

As allegations fly at New Mexico Highlands, the state has decided to step in.

New Mexico State Auditor Joseph Maestas told the board last week that he was conducting a special audit “to ensure full accountability, objectivity, and transparency.” Maestas listed concerns in multiple areas including procurement and contracting, expenditures of public funds, internal controls and financial management, and employment and personnel practices.

He added that “these concerns raise the potential for fraud, waste, or abuse of public funds.”

New Mexico Higher Education Secretary Stephanie Rodriguez followed up with her own letter last week. Addressed to Interim President Kimberly Blea, the letter noted that New Mexico’s Higher Education Department previously raised concerns about “NMHU’s financial condition, contractual obligations, and capital project concerns.” In the letter, Rodriguez informed Blea that NMHU must submit a corrective action plan for fiscal years 2026 and 2027.

“The Department expects full cooperation and transparency as NMHU continues under enhanced fiscal oversight,” she wrote. “Given the higher education institution’s recent history of declining solvency, indicators of potential fraud, and significant weaknesses in internal controls, it is essential that current leadership remain fully engaged in addressing these issues.”

A spokesperson for New Mexico Governor Michelle Lujan Grisham, a Democrat, told Inside Higher Ed by email that she “is confident in the work of Secretary Rodriguez and State Auditor Maestas with respect to this situation at New Mexico Highlands University.”