University of Michigan regents considering student housing rate increase
Rates for University of Michigan residence hall room and board next academic year could increase 3 percent under a proposal to be considered by U-M's Board of Regents at a meeting this week.
The proposal calls for an average increase of 3 percent for residence hall room and board, and an average increase of 1 percent for Northwood Community Apartments university housing for the 2010-2011 academic year.
• See the proposal
According to U-M materials, the increase would raise the average costs of a double undergraduate hall room and board by $268 - from $8,924 this past year to $9,192 next academic school year.
Rates could be going up at the University of Michigan's dormitories like the Markley Residence Hall.
File photo
It would increase the costs for a university apartment for undergraduates for a one-bedroom with one occupant from $8,510 to $8,595 next academic school year.
The proposal for the residence hall increase includes 1 percent to support operations and 2 percent for Alice Lloyd Hall facility renovations. The increase in university housing rates is for general costs of operation.
The proposed increases are needed in part to cover increasing costs for University Housing, including increasing costs of utilities, insurance, food, labor and benefits, said Peter Logan, spokesman for University Housing.
Since 2003, University Housing has also been making capital improvements to renovate aging residence halls, he said.
The department has had to balance how it cut costs, dealt with increases in operations and pursued capital improvements, Logan said.
“We’re very sensitive to the regional economy and how that impacts students and parents,” Logan said. "We've been very thoughtful about that."
In the past several years, University Housing has found areas to cut back on, such as reducing the use of overtime and contract work, delaying purchases and increasing the efficiency in dining operations like reducing food cots and reducing the number of dining halls open during the weekends to offset the increases, he said. Students have been responsive to the improvements, including those at the renovated Mosher-Jordan and Stockwell Halls, he said.
In the proposal for the regents, E. Royster Harper, vice president for student affairs, includes comparisons of room and board rate changes approved this year at other Big Ten universities, including Michigan State University. MSU's Board of Trustees approved an increase of 5.1 percent for residence hall rates, but voted to keep tuition flat.
In April, Eastern Michigan University's Board of Regents approved a freeze on tuition and room and board costs for the 2010-2011 academic year.
Tina Reed is a digital journalist for AnnArbor.com. You can reach her at tinareed@annarbor.com, call her at 734-623-2535 or find her on Twitter @TreedinAA.
Comments
ChunkyPastaSauce
Wed, May 19, 2010 : 4:08 a.m.
Sorry I accidentally clicked submit before intending to Anyway continuing @stunhsif: I know 6 billion is a lot of money and is at the level of a large corporation but thinking of uofm as a 'company' is not correct for a number of obvious reasons... Anyway as for the taxes.. they don't pay taxes because we give them money... it would make no sense to fund them and then to tax them on the money we just gave them. Furthermore they generate insane amounts of new highly skilled, highly paid graduates - most of whom will be paying taxes. In fact some of them will go and start their own highly successful companies that will also be paying taxes. On top of that the research done at u of m, a lot of which is requested by the gov btw, benefits society directly. In other words we get the money back....
ChunkyPastaSauce
Wed, May 19, 2010 : 3:37 a.m.
In all fairness.. UofM has a increase number of enrollments -> fewer available dorms -> tuition increase to balance demand/build more dorms. UofM has had a billion+ endowment decrease -> less money than planned -> increases in student costs to help balance. U.S. inflation is up 2.7% from last year -> have to adjust for inflation -> accounts for the majority of the 3% rise. For those calling for a payroll decrease...good luck on that. World class researchers/professors tend not to have problems finding jobs elsewhere. @stunhsif: UofMs current endowment is about 6 billion.. which is down a billion+. If you think that's a lot Ive been told that they receive more than this in donations a gifts.
stunhsif
Wed, May 19, 2010 : 12:57 a.m.
Help me out here please? U of M is sitting on how much money in endowments? I think around a BILLION plus, maybe 4 times that much? And they pay no taxes and suck the lifeblood out of us taxpayers. Time to start taxing the U of M like any other company. This really cranks me hard time!!!!
masticate
Tue, May 18, 2010 : 8:47 p.m.
As an incoming Michigan freshman, I must admit I get a little jealous when I hear the commercials for Eastern's freeze on tuition and room/board costs.
dading dont delete me bro
Tue, May 18, 2010 : 5:45 p.m.
@adam, let's go huskies! glad to see u of m is competing with emu increases.
djacks24
Tue, May 18, 2010 : 4:44 p.m.
Just making the education bubble a little bigger. Why should the almighty UofM follow lowly EMUs lead?
uawisok
Tue, May 18, 2010 : 4:11 p.m.
41100.00 per month for dorm room and board...wow...Thx maybe I'll rent out my small 2 bedroom downtown home!!
InsideTheHall
Tue, May 18, 2010 : 3:46 p.m.
When will the fat cats at the U take a pay cut???????? http://data.michigandaily.com/tmdsal?dept=&fte_op=%3E%3D&fte%5Bvalue%5D=150%2C000&fte%5Bmin%5D=&fte%5Bmax%5D=&title=&campus=All&Year%5B%5D=2009&fname=&lname=
just a homeowner
Tue, May 18, 2010 : 3:36 p.m.
I gotta say, the dorms and the food had better be wonderful and perfect at the cost of $1100/month.
Ignatz
Tue, May 18, 2010 : 1:47 p.m.
There are a few distinctions between dorm living and living in the off campus economy. 1) Eat in a dorm - all you can eat and waste for the same price. Eat in the private sector - pay for all of it by what you take. 2) Dorms are usually in much better shape that the rental market housing. Have you seen some of these places? Deferred maintenance seems to be their bible. Dorms get their repairs done relatively toot sweet. 3) In dorms there are folks who keep the place clean. In your "own" place, bring your mom.
say it plain
Tue, May 18, 2010 : 1:10 p.m.
@DCam's analogies are kinda over the top lol, but it does seem ridiculous to raise rents in this economy...looks lots like a blatant attempt to help 'deal' with the losses from the endowment via the stockmarket of late by getting more from the masses who can't complain. It sure doesn't look very pretty, maybe not quite Carthage, but surely the poor captive audience has a right to complain about it.
Dcam
Tue, May 18, 2010 : 1:02 p.m.
Are you kidding me? That's absolutely outrageous. Mary Sue Coleman isn't a academic president, she's a money-grubbing robber baron - using other people's assets and money. Academics are far down on her list of priorities, she's empire building but it can't continue. She obsesses about destroying private industry, claiming private property, and banning private initiatives, and she is using the UM to do it. The UM under Mary Sue has become like Roman salt on Carthage, laying waste to all the countryside.
bruceae
Tue, May 18, 2010 : 12:37 p.m.
Maybe the U of M regents could hire staff from Eastern since they seem to be able to keep costs down and the people they have working here now can't get the job done?
a2grateful
Tue, May 18, 2010 : 12:33 p.m.
On behalf of all private rental property owners in the city: Thank you, U of M!