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RHS proposes 3.9 percent room and board increase for 2013-14

April 4, 2013

The Residential and Hospitality Services, or RHS, is recommending a 3.9 percent increase in room and board rates for the 2013-14 academic year in the plan presented at a meeting of the Residence Halls Association, or RHA, Wednesday.

The increase is the lowest in 13 years, RHS Chief Financial Officer Bob Peterson said at the meeting.

The cost for a full year in a dorm would increase by about $330 if the plan is approved. Last year, for the 2012-13 school year, rates increased by 3.95 percent.

The plan officially will be sent to the MSU Board of Trustees next week for approval, but RHS presents the plan early every year to RHA at the direction of MSU President Lou Anna K. Simon.

Peterson said the reason for the increase is the rising operational costs RHS is encountering, mainly because of increased payments to pay off the debt RHS has incurred over the last several years because of construction. Debt service costs will go up by 32.5 percent, or $3.7 million, next year, according to the plan.

“We are sensitive to the cost of education, but at the same time we do have rising costs we need to deal with,” Peterson said. “The room and board rates we generate goes to improving (facilities) on campus.”

RHS Director Kathy Collins said although the cost of debt is forcing RHS to increase housing costs, it could have been even more costly to students.

“Construction costs were low, and we took advantage of it,” Collins said.

She also said RHS saved about $10 million on the renovations in Brody Complex Neighborhood because of the way the project was planned.

Peterson said he wanted to make it clear that the RHS proposal is not final and needs board approval to go into effect. The Board of Trustees will review the proposal next week.

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