How Residence Halls Are Funded
I have spent so much time lately on the "Ask The President" site I have neglected this blog. For those of you awaiting signs of life from the President, here is the most frequently asked question of late:
Q: How are residence halls funded? Can that money be put elsewhere?
A: Our residence hall operations are a fully self supporting University auxiliary. This means that no funding from tuition, fees or state appropriations go into the operations or new construction of student living space. When we embark on a new residence hall construction project, such as our wonderful state of the art Century Park Residential Community that opened this Fall, we finance the project solely through the rental payments of occupants of the facility. Through our Southern Mississippi Educational Building Corporation we issue bonds to finance the project, which are paid off over a 20 to 30 year period through the rent that students pay to occupy the facilities. The student rentals, which are still a bargain and below commercial market rates, pay the bonded indebtedness, as well as all operational costs including utilities, personnel and maintenance. It is important in these austere financial times for all to understand that new residence hall projects, which are vital to our enrollment growth, are not funded in any way from tuition or state appropriations.