Penn State students living on campus will likely see a $135 per semester increase in average room and board rates in 2018-19.
The Penn State Board of Trustees Committee on Finance and Capital Planning on Thursday morning approved recommending the 2.5 percent increase for a vote by the full board on Friday.
With the increase, the rate for a standard double room and most common meal plan would be $5,530 per semester. The percentage increase is the lowest in eight years, John Papazoglou, associate vice president for Auxiliary and Business Services, said.
Overall expenses for Housing and Food Services and Residence Life are expected to increase by $14.3 million next year. Factors including increases in food and overhead expenses, as well as a multi-year capital assessment, were included in determining the rate.
The university’s Housing and Food Services is entering the sixth year of a 15-year capital plan for new construction and renovation for student residences. That includes renovations and new residence halls at East and Pollock complexes on the University Park campus. In all, 23 buildings, or 50 percent of the campus’ residential capacity, are involved and the Board of Trustees previously approved a capital assessment to be applied to room rates over a 10-year period.
Housing makes up $95 of the $135 standard room and board increase, and of that, $62 is the capital assessment. Papazoglou said Penn State’s room and board rates have been and are projected to remain slightly lower than the average among Big Ten schools
As new and renovated buildings come online, the debt service for Housing and Food Services also increases, and will increase by $4.3 million to $42.6 million in 2018-19.
The new Martin Hall in East Halls, adding 415 bed spaces, will open in the fall, as will the renovated Stuart, McKean and Pennypacker Halls. The new Earle and Robinson halls opened in the fall of 2017. The next phase will include major renovations to Brumbaugh, Pinchot and Tener halls. The committee on Thursday recommended approving final plans and authorizing expenditure of $84.5 million for the three renovations.
Housing and Food Services is a self-supporting unit and the funding for the next phase will come from reserves and borrowing.
At four campuses — Mont Alto, Hazleton, Greater Allegheny or Beaver — there will be no housing rate increases, an initiative to establish a market-driven model, similar to tuition rates. A $1,000 per semester discount also will be offered at the Hazleton campus, and $1,000 per semester subsidies will be offered for some students at the four campuses in cooperation with the Pittsburgh Promise. The subsidies will be offered to students with scholarships from the Pittsburgh Promise.
University Park Undergraduate Association President Katie Jordan expressed concern that because some Commonwealth Campuses have not been able to fill their residential capacities, it will in the future put more pressure on rates for University Park students.
