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Room and board to raise 4 percent
Room and board rates will increase by four percent next year for SCSU residence halls, according to Michael Hayman, director of residential life.
Hayman was quick to point out that, unlike the proposed 13 percent increase in tuition for next year, the room and board increase is simply a matter of keeping up with inflation, new employee contracts and a new food service contract.
"We are independently funded, so we don't receive any tax money or any money from the school," Hayman said. "So that $2 billion deficit for the state doesn't effect us."
Residential Life is unique among SCSU departments in that it pays for itself, with revenue coming primarily from room and board fees, as well as miscellaneous things, such as vending machines, rentals, and fundraisers. This makes Residential Life somewhat immune to the university and statewide budget shortfall.
Hayman said that with statewide employee contract negotiations resulting in a four percent increase for employees, the residence halls at SCSU had to adjust accordingly. Additionally, a new contract with Aramark food services also put pressure on Residential Life to raise their rates.
"Food service makes up approximately one-third to 40 percent of the room and board price," Hayman said. "Our contract with Aramark was just renegotiated with a four percent increase, so that was reflected in our new budget."
Hayman roundly rejected the idea that the four percent increase had anything to do with the University's recent purchase of Stateview apartments.
"I have heard that rumor, [of room and board rates going up to pay for Stateview] and it's just not true," Hayman said last week. "We started formulating this budget in November when we weren't even sure if we would get Stateview or not. The residence hall rates are based solely on the residence hall budget."
To purchase Stateview apartments, as well as renovate Lawrence Hall, Residential Life requested $5 million from MnSCU. MnSCU sold bonds on SCSU's behalf to generate those funds. The school is hoping that the revenue generated by Stateview will be enough to support the capital bonding program.
"Our hope is that Stateview will be totally self-supporting, and we think that might even be possible without raising the rent in those buildings," Hayman said.
While the four percent increase is a small, incremental change, it comes on the heels of a proposed 13 percent increase in student tuition. While Residential Life firmly maintains the two are unrelated, students might not make that distinction.
"We have a tuition increase for next year, and now there is an increase for room and board," said Student Government President Shahjehan Ganny. "There is some concern that these (increases) might effect the decisions of incoming freshmen as to whether or not they want to come here."
Hayman is also concerned, but he does not think the four percent increase will deter students from coming to SCSU.
"Even with a four percent increase in room and board rates, our rates are lower than any other state school, so I think kids will still find our rates attractive," Hayman said.
Jake Zisla can be reached at: [email protected]
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