Dorm renovations will be slowed due to shortfall

An unexpected decrease in the number of students who chose to live in University dormitories this year will likely force delays in dormitory renovations. And University officials would not say if the Residential Living Department would absorb all of the lost rent revenues or if the cost would be passed on to students in increased rents. Deputy Vice Provost George Koval said yesterday Residential Living has "roughly 400" vacancies this year -- twice the usual number -- and now expects a revenue shortfall of about $700,000. Since Residential Living's budget is separate from all other University departments, this shortfall will have no effect on the expected $1 million deficit in the overall University budget. Residential Living will not have a budget deficit this fiscal year, Koval said. "We will meet our budget," Koval said. "We're going to continue to operate as planned." But because Residential Living's spending is limited by its revenue intake, the shortfall has forced the department to make some cuts in order to avoid a deficit, he said. "There is no such thing as profit in the residences," Koval said. "If you fall short of revenue, you cut back on some of the expenditure." On Monday, Koval stressed those cuts would not affect dormitory services, such as security and maintenance, adding, "students should not expect to see any changes [in services] this year." However, Koval would not say if students might have to pay for the shortfall in the form of unusually high dorm rental increases next year. He said the rent increases, which still must be approved by the University Trustees, will be announced in about three weeks. According to Koval, Residential Living will take four steps to recoup the lost revenue: slowing down planned and deferred maintenance, drawing on the department's emergency reserve funds, renting rooms this summer to conventions and other groups, and redirecting funds saved by lower utility costs. Renovations on the remaining unrenovated sections of the Quadrangle -- including Butcher, Speakman and Class of 1928 residences -- will have to be delayed indefinitely due to a pricetag of "about $20 million," Koval said. Koval said that since nearly $6 million of the department's $27 million budget this year must be spent to repay debt for earlier Quad renovations and the construction of the high rises, no plans have been made for the additional Quad renovations or the construction of new dorms. The deptuty vice provost added that Residential Living will not be able to "do certain things that will enhance the living conditions of students," including some painting, rug replacement and kitchen repairs in dorms. In addition to cuts in maintenance, Residential Living might also use reserve funds to balance the budget. "We don't have millions of dollars stashed away, but we do have sufficient funds to pick up whatever shortfall there is [in combination with other measures]," he said. Koval would not specify the level of funds currently available on reserve. Koval said renting dorms to conferences and other groups -- an annual practice -- would be another means of increasing the department's revenue. Those "summer earnings" constitute added income since they are not figured into the original budget, he said. Finally, Koval said he hopes the mild weather so far this winter continues, since warmer weather means lower heating costs. "It may be that we will have some savings by reducing other expenses like utilities," he said, adding that Residential Living must spend $6 million a year for utilities. The permanent closing of the Law School dorm and the temporary one-year closing of English House should increase the occupancy rate next year, according to Koval. "We have planned next year's budget on current vacancies," he said. "We'll have the same number [of students] without the vacancies, because there will be fewer rooms."

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