“Every February, we send our proposed housing and dining rates to the MSU Board of Regents for approval,” Michael Mills, director of dining and residence life, said. “Once the rates are approved and finalized, we will then update our revenue projections based upon occupancy trends and finalize our housing budget during the summer months. Rates sometimes vary from year to year depending on current year expenditures and proposed upgrades to housing and/or dining.”

Housing is funded from rental revenues and does not receive any money from tuition or student fees.

“We must operate our housing system based upon the revenue that has been brought in current year rents and with current year expenses. Sometimes things change such as our utility rates that require us to have higher expenditures than the previous year,” Mills said.

This year Wi-Fi is a big factor of the proposed increased rates.

“I can gladly say that this year’s increase in room rates will be mainly to help cover the cost of a major upgrade that the Office of Housing and Residence will be undertaking,” Mills said. “We have been listening to student talk for several semesters now about the need to offer WiFi service in the residence halls.”

According to Mills, to convert the current system to wireless, a complete overhaul of the ResNet system will be required. The annual internet cost will double according to preliminary studies and discussions with vendors.

“Just about everyone indicated that Wi-Fi service is a must and therefore we will be going out to bid shortly after the February Board of Regents meeting (assuming rates are approved) to solicit proposals for wireless internet service,” Mills said. “However, housing will be looking to cover some of the upfront cost from housing reserves in year one to try and defer some of the upfront expense which will in turn reduce the annual cost. Therefore, there is a slight increase in room rates to cover the projected additional annual wireless costs.”

Staff members in the Office of Housing has met with student groups such as the Residence Hall Association and conducted focus groups to determine how big of an impact Wi-Fi service would have on the residence life environment.

The cafeteria will not be upgraded with the proposed increased rates.

“The cafeteria will not be undergoing any major renovations due to this year’s proposed increase in meal plan rates,” Mills said. “However, in partnership with Aramark (the Food Service provider), we will be beginning an in-depth study of the dining program next fall in preparation for our next food service contract to take place in the coming years. This will be an exploratory study to look at student opinions and recommendations for a future food service contract.”

Some of the increased rates are a 5.07 percent increase in the cost of a semi-private room in Killingsworth and Pierce, 3.84 percent increase in rates a semi-private room in McCullough Trigg, 2.26 percent increase in rates for the 14-meal plan and a 4.85 percent increase in the 25-meal block.

The apartment’s rates are not increasing.

“There are additional services that will be provided in university housing next year that we currently do not offer,” Mills said. “Because we are trying to keep that cost minimal by using some money from housing reserves to lower than annual cost, we did not feel it was necessary to increase everyone’s rates. We only wanted to increase rates to the amount needed in order to cover the additional costs for these services.”

Views vary about the increased rates.

Sierra Harper, a freshman in art, said she probably wouldn’t live in the dorms due to the high cost. However, she said, getting wireless access in the dorms “is a good idea.”

If the rates are approved, they will go into effect during the 2013-2014 year.

“Overall, the students will benefit from the services provided next year with the proposed rates,” Mills said. “We are happy to report that with the proposed housing rate increases we will be able to provide a service Wi-Fi that our students tell us is critical and something that we have repeatedly heard the students would like to see implemented.”