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Increase in room and board rates approved

April 16, 2010

Room and board for students living in double rooms in residence halls will increase by about $375 after the MSU Board of Trustees voted Friday to approve a 5.1 percent rate increase for 2010-11.

The increase puts the annual rate for double room and board at $7,770, up $376 from the 2009-10 rate of $7,394. Single room rates will not be affected by the increase, although all meal plan rates will go up following the board’s approval.

MSU officials said the increase is necessary because operating expenses are expected to increase slightly in 2010-11, as well as the need to abate more than $100 million in debt accumulated from multiple renovation projects.

Among those projects are the forthcoming $16 million renovation of the Case Hall cafeteria and a nearly $50 million renovation to Brody Hall, which is expected to partially open this fall, a year and a half after being closed.

MSU’s debt service costs are expected to increase from $4 million to $6.8 million in 2010-11 because of bond refinancing.

“We’ve been working really diligently to manage our budgets and also move forward with our renovation projects,” said Vennie Gore, associate vice president of MSU’s Residential and Hospitality Services.

“We feel pretty good that we’ll continue giving students a good value.”

Some students said they are displeased with the board’s approval of a rate increase. Angela Marinich, an applied engineering sciences freshman living in Landon Hall in the fall, said students should not have to pay for the renovation projects during times of economic strife. Marinich currently lives in Case Hall.

“I think that it’s kind of unnecessary to be renovating all the time,” Marinich said.

“I’d rather the caf just be OK and have it cost less.”

Administrators said the increase will maintain the quality of campus life and services. MSU President Lou Anna K. Simon said the university did not want to increase tuition or use state appropriations to fund projects that only pertain to a certain number of students.

“The housing system has to be self-supporting,” Simon said.

“We really believe that, with the meal plans and the renovations that we’re doing, we’re providing a higher quality product for our students.”

Friday’s decision also carried implications for students living in university apartments. Monthly rent at University Village will increase from $663 to $683, an increase of $20 per room. All apartment units at University Village contain four bedrooms.

Additionally, monthly rent for single bedroom apartments at the Cherry Lane, Faculty Brick and Spartan Village complexes will decrease from $700 to $650. Two-bedroom apartment rates will remain at $774 per month.

Gore said the decrease can be attributed to the approved demolition of the Cherry Lane and Faculty Brick complexes. That approval also occurred during Friday’s meeting, with the $5 million demolition expected to begin in summer 2011.

Administrators also factored in the need to be competitive in the East Lansing apartment housing market when making the proposal, he said.

“We didn’t want to raise the rates for those students knowing that in a year from now, those buildings are going to come down,” Gore said.

“When you begin looking at the apartment community, it’s a very competitive community. And we have to be competitive.”

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