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NEWS
[ Monday, March 20, 1989 ]
 
Room and board increase by $160

Collegian Staff Writer

HERSHEY -- Students will have to draw an additional $160 from their wallets next year to reside in a typical dormitory room, due to a resolution passed by the University Board of Trustees at this weekend's meeting.

The rates for a standard double occupancy will increase $80 per year and the University's five meal plans will increase by the same amount, said William McKinnon, assistant vice president for Housing and Food Services.

The increases also include units in graduate residences, University Park Nittany Apartments, University Manor Apartments, University Park Graduate Family Apartments, Behrend Apartments, Capital Meade Heights Apartments and Capital College Family Apartments.

Steve Garban, senior vice president for finance and operations, said the increases, ranging from 5 percent to 5.6 percent, run parallel to the estimated cost of inflation. The inflationary rate exceeded the increase in room and board charges for the past two years, he added.

"The recommended rate increases will generate $2,379,432 in additional income to cover anticipated increases in expenses," McKinnon said.

Before the board met this weekend in Hershey, otherwise known as Chocolate Town, U.S.A., Graduate Student Association President Ken Martin said it would be unfair for him to call for a freeze on room and board charges.

After Saturday's meeting, Martin said the increase was slightly higher than what he would have liked to see.

"But the percentage of increase is something that I really can't complain about," he added.

According to a study compiled by McKinnon, Housing and Food Services is an auxiliary enterprise, meaning monies paid by students and guests for food and lodging are the only funds available to pay operating expenses.

"The residence hall and dining commons program is completely self-supporting," Garban said. "State funds are not used for operation of this program."

McKinnon detailed several areas of increased expenses for the 1989-90 academic year, which made the increase of room and board charges necessary:

-- Wholesale food prices are expected to increase by 5 percent for 1989-90. But the completion of a new Housing and Food Services Building and greater efficiency will result in a 1 percent increase over last year.

-- Technical service wages, including staff and clerical employees, will increase by 5 percent.

-- Base wages for student employees were increased in September 1988 from $3.65 per hour to $4.00 per hour, a 9.5 percent increase. Those base wages will increase to $4.15 per hour effective January 1990.

-- The overall utility expenses will rise by $213,501, an increase of 4.4 percent. The cost of electricity and gas are predicted to remain at the same levels as last year, but a dramatic increase in the cost of solid waste disposal will require an additional $99,275, or 23.2 percent.

"This increased cost is due to restrictive laws on spreading these materials on agricultural lands, thus requiring disposal in landfill sites," McKinnon said.

-- Other expenses include a $.30 per month, per phone charge imposed by the Federal Communications Commission, deferred maintenance costs, fringe benefit costs and other operating expenses.

The housing capacity of the University's state-wide system is 16,565 people, with units at University Park housing 13,057 of that total, according to McKinnon's study.

 

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