The Indiana University- Bloomington campus will raise room and board rates by an average of 6.3 percent in the 2011-2012 school year. The IU Board of Trustees voted for the rate increase at a meeting on the IUPUI campus Thursday afternoon.
The university recently constructed its first new dormitory, the Union Street Center, in 41 years. IU Vice President Chief Financial Officer Neil Theobald says the rate increase is necessary to help renovate the older dormitories, and help pay for the new ones.
The room and board increases will range. University apartments will see little increase and meal plans will rise slightly. The dorms are separated in to three categories; standard, enhanced and premium, and will see rate increases of 9, 8 and 5 percent.
“The average is 6.3 percent across food, across apartments, across residence halls,” Theobald said.
In addition to the room and board rate increases, the Trustees will now require non-state funded university buildings, such as dormitories, the Indiana Memorial Union and the IU Auditorium, to set aside 1.25 percent of their property value every year.
“The state does not provide the funds because there really businesses that operate within the University,” Theobald said. “Given that they are generating revenue, we need to set aside funds so that if there’s a roof that needs fixing, for example right now we’re replacing the roof on the IU auditorium, the funds have been set aside to do that so we don’t have to find the money at that time.”
Theobald says the Indiana Memorial Union already does an excellent job of saving money for renovations. He says raising room and board costs will help ensure they can put aside 1.25 percent of their property value every year for renovation. And if they dont…
“That is not optional, I have to sign off on their budget at year end every year and that will be one of the requirements for me to sign off.” Theobald said.
As of 2010, Indiana University had the 5th lowest room and board rates for all Big Ten universities.