Boston University will be financing upcoming projects that require large budgets but will not raise tuition past its normal increase rate, according to a university spokesman.
For the 2006-07 academic year, BU’s tuition rates held a relatively low 5.29 percent increase, despite total tuition costs totaling more than most four-year private institutions. The national average increase rate for four-year private universities’ tuition is 5.9 percent, according to an October 2006 College Board report.
The university has invested $837.3 million in property and equipment in the last five years, including $115.8 million in the 2006 fiscal year, according to the BU Annual Report. Released last month, the report details the university’s funding distribution.
The costs also include the Fitness and Recreation Center, which totaled $235 million over five years, according to the report.
Along with completing the approval and planning phases of Student Village 2 dormitories, BU purchased more real estate for endeavors, such as the School of Hospitality Administration building at 928 Commonwealth Ave., according to the annual report.
Tuition has not risen above the current increase rate in the past five years, said BU spokesman Colin Riley.
BU’s tuition — approximately $33,330 — is higher than the average tuition rates for private four-year colleges and universities, which rose $1,238 in the past year to $22, 218.
Though the national average represents a 5.9 percent increase, it is actually 2 percent after adjusting for inflation, according to the report. The average fee for all costs — tuition, fee, room and board — is $30,367.
The university was not as careful in managing costs in the late 1970s and early 1980s, Riley said. As a result, tuition increase rose above 10 percent during that time.
“We had a couple of years where we almost had 20 percent increases,” he said.
The university is also going through its first full year of operations for other on-campus property, including the Life Science and Engineering Building, aimed at biology, chemistry, biomedical engineering and bioinformatics facilities, according to the annual report.
The university aims to keep tuition rates to a minimum, said President Robert Brown in a March 23, 2006 letter to students and parents.
“As has been true for other organizations across all sectors of the economy, rising energy and healthcare costs have created additional challenges for Boston University,” he said in the letter. “However, we continue in our efforts to decrease expenses in other areas without sacrificing the imagery of our academic programs.”
The current tuition increase at the university “compares favorably with the increases being enacted by our peer institutions,” Brown said in the letter.
The university will borrow money to pay for on-campus construction of Student Village 2, scheduled to open in fall 2009, Riley said. The university expects to receive the revenue when students move into the housing units and pay the room and board fees, he said.
The cost for living in Student Village 2 has not yet been determined, said Housing Director Marc Robillard in an email. The new residence will house 960 students in apartment-style and dormitory-style units.
Tuition covers half the university’s operating budget. The other half is comprised of other expenses, including housing, research and commercial interests, Riley said.
“The university works very hard to develop an operating budget and plan all its projects and anticipate what the cost will be,” he said. “We put money aside for capital projects, and we hope those projects are self-sustaining.”