The geographic reach of the university was increased with the opening of academic learning and outreach centers in Fredericksburg, Marble Falls, Amarillo, and Abilene, Texas.

[4] During his tenure at the University of New Mexico, enrollment and research funding grew for the first time in decades and the newly reorganized UNM foundation initiated a $675 M comprehensive campaign, the largest in the institution’s history, and gift activity increased by 55%.

He also developed a strategic budget model and cost containment program that accommodated a $64 M reduction in state funding (20%), accomplished without layoffs or mandatory furloughs.

The investigation involved Associate Professor Lisa D. Chavez, who had been moonlighting as a phone sex worker on various bondage and sadomasochism websites with current and former graduate students.

According to the Chronicle of Higher Education,[5] Schmidly authorized the use of an outside attorney, who was tasked with investigating Chavez's complaints against faculty members she accused of discrimination and slander.

At UNM, accusations of cronyism arose within the first 18 months, when he hired long-time friend, John Stropp, a senior executive at the Texas A&M Foundation, with a compensation package of $325,000.

[9] In response, Schmidly led a year-long study of shared governance at UNM and filed a monitoring report with the Higher Learning Commission (HLC) that received high praise.

In January 2011 KOAT television reported on a lawsuit challenging UNM's awarding of a construction contract for renovation of the PIT basketball arena to out of state contractor Flintco.

Relenting to pressure from supporters on campus and in the community, including multiple UNM faculty members, on October 26, Schmidly's office issued a new, modified permit which will allow the protesters to return to Yale Park during strictly defined periods.