When he starts work at the University of New Mexico July 14, Louis Caldera will get a hefty pay raise.

As UNM's next president, Caldera will receive a salary package worth $370,600 a year. That includes a $270,000 base salary, a housing allowance and a retirement fund contribution.

Caldera, a vice chancellor for the California State University System, was in Albuquerque on Tuesday to sign the nine-page contract at a UNM Board of Regents special public meeting.

Many regents said it's about time the university became competitive with other schools in the salaries it pays employees - starting with the president.

"It's competitive, but it's also very reasonable," Regent John "Mel" Eaves said about Caldera's contract.

For Caldera, his move to lead New Mexico's largest university means a 40 percent pay raise - $148,072 more a year. In the California job, he makes $222,528 a year, including a $9,000 car allowance.

Regent Maria Griego-Raby said Caldera was worth the money.

"We want to retain and attract the brightest," she said. "So, we have to compensate them accordingly."

The main reason for the big increase to the UNM president's salary is because the last two presidents did not receive a pay raise, regents said.

"We've been kinda frozen in time with that salary," Griego-Raby said.

On Tuesday, more than 60 people attended the 30-minute special meeting in Scholes Hall on campus.

Sitting on a black leather chair, Caldera, with his wife, Eva, by his side, signed the contract, using his left hand and a black pen.

He received a bag full of Lobo gear, including black T-shirts and red caps, from the UNM Athletics Department.

Caldera, dressed in a navy blue suit, said he's excited about moving to the Land of Enchantment.

"We've already fallen in love with the university and New Mexico," said Caldera, wearing a state flag lapel pin.

He said he's ready to work hard and prove himself to the university community.

"It's just the beginning," Caldera said. "Until you do the job well, you can't pat yourself on the back."

Some community members said they're glad the regents picked Caldera.

Chuck Monta§o, chairman of the New Mexico Hispanic Round Table, took time off from work at Los Alamos National Laboratory and drove to Albuquerque for the meeting. He said he wanted to welcome Caldera to New Mexico.

The round table, an activist group, backed Caldera and has been pushing for a Hispanic UNM president for at least a decade.

Caldera will be the first Hispanic to serve as permanent president of the 25,000-student campus. He takes over from F. Chris Garcia, who accepted a temporary, one-year appointment after William Gordon left last year.

"It's a historic event," Monta§o said. "I wouldn't miss it for anything."

Some faculty members were also at the meeting.

UNM Faculty Senate President Beverly Burris said she and other senate members are planning to meet with Caldera soon.

"He's very open to working with the faculty, and that's a great start," Burris said.

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CALDERA'S CONTRACT

Louis Caldera will be the University of New Mexico's 18th president. He signed his nine-page contract Tuesday. His first day of work is July 14. The contract is for four years, from August to July 31, 2007.

Total annual salary package: $370,600

Annual base salary: $270,000.

Annual contribution to Caldera's retirement fund: $30,000.

Annual performance incentive: $25,000.

Annual housing allowance: $36,000.

Annual car allowance: $9,600.

Other contract provisions:

The university will pay Caldera's moving expenses, including any closing costs and realtors' fees associated with selling his house in California and buying a house in Albuquerque.

UNM will pay for membership fees and dues in two social clubs chosen by Caldera.

"Special one-month leave" - Caldera will get a month off after every two-years of service in addition to regular vacation time.

The university will pay for all of Caldera's "official entertainment and travel."

UNM will maintain a $500,000 life-insurance policy on Caldera.

The university will pay his child care expenses while Caldera is on official duty - he has three daughters ages 2 to 7