Budget deficits agonize DOR
March 11, 2004
DES MOINES — Lower university enrollment and competition from off-campus housing resulted in a difficult year for the ISU Department of Residence, ISU officials said at a Board of Regents meeting Wednesday.
These fiscal challenges have come despite the popularity of new buildings with added amenities and more dining options for students.
Vice President for Student Affairs Thomas Hill said the Department of Residence was forced to reduce its expected operating budget by 3.8 percent early in fiscal year 2004. This was done by cutting personnel and programs, closing Linden Dining Center, reducing the hours of Clyde’s Sports Club and Hawthorn Market and Cafe, and closing Knapp Hall ahead of schedule.
Hill and Randy Alexander, director of the Department of Residence, outlined steps Iowa State has taken to respond to student needs. Currently, all building projects listed in the Department of Residence’s Master Plan are finished or under construction, with the exception of Union Drive Suite #3, the building of which has been postponed indefinitely.
Alexander said Iowa State has provided updated buildings with added amenities, such as the Union Drive Suites and newly remodeled Buchanan Hall, and demolished outdated buildings, such as Knapp Hall and Storms Hall, to meet students’ desires.
Hill said the high costs of living in the new buildings have not deterred students.
“Where they get their money from, I don’t know,” he said.
Hill also introduced proposed residence hall rate increases for 2004-05.
The lowest rate proposed for a residence hall room, including Frederiksen Court, for 2004-05 is $3,168 and the highest is $5,918, a range increase of $128 to $230.
With tuition and residence rate increases, the cost of attending Iowa State for an undergraduate would rise $616.
Hill said increases are driven by mandatory inflationary increases. He said both the Inter-Residence Hall Association and the Frederiksen Court Community Council voted to support increases.
ISU President Gregory Geoffroy said off-campus competition forces the Department of Residence to keep rates low.
“We now find ourselves in a very, very competitive housing market in Ames,” Geoffroy said. “There’s certainly a limit on how far we can raise our rates.”
Regent Robert Downer of Iowa City expressed concern about Iowa State’s 9.7 percent projected gross revenue increase for fiscal year 2005, especially in light of past cuts.
“It appears [the ISU Department of Residence is] going through something of a shake-
out in the residence system,” he said.
The increase is based on a prediction that 48 more students will sign residence hall contracts.
Regent John Forsyth of Des Moines shared Downer’s concerns.
“If the worst case scenario happens, what are our options?” he said.
Downer asked for more information on the differing rates of buildings, and Forsyth requested more context for the numbers.
The board will be asked to approve the increase in April and the Department of Residence budget this summer.
Also at Wednesday’s meeting, the board approved a study for the renovation of Friley Hall and an architectural agreement for the renovation of Carver Hall, which will house faculty from the English and mathematics departments.