Talking Stick - September/October 2008 - (Page 44)

Think Globally, React Locally The interconnectedness of our global economy has implications for many aspects of higher education, including college and university housing. While some influences are more obvious (energy, transportation, and the cost of materials), others are more subtle (trends involving health care and minimum wage); but all of them have the potential to influence policy and funding decisions. Campus housing administrators must pay close attention to these indicators and find the right balance for sustaining operations and remaining competitive with local markets. process, and leveraging the balance sheet for operations that cannot look to the institution to subsidize costs.” Housing practitioners must consider how local and regional events or crises can influence the pricing and availability of services that would otherwise be within predicted margins. For example, an unexpected local weather event such as a drought may increase water and sewer rates, and unexpected increases in energy costs can quickly negate the income generated by a cost-of-living increase in room rates. Deb Boykin, assistant vice president for student affairs and director of residence life at The College of William & Mary in Williamsburg, Virginia, explains one solution to rising utility costs that helped her institution better forecast expenses: “Several years ago William & Mary hired its first energy manager, and this person has provided invaluable assistance in projecting accurate utility costs. Knowing how much of the budget will be required for electrical, water, sewer, and gas charges allows me to do a better job setting room rates along with making informed decisions as I allocate funds to the other accounts over which I have more control. But more than helping to make accurate budget projections the energy manager is always exploring and identifying ways we can cut our energy costs – replacing wasteful utility lines, ensuring ‘green’ construction, educating students about energy conservation, providing leadership to the purchase of energy consuming equipment and appliances, and modeling responsible citizenship.” Basic Economic Influences Some of the basic national and global economic trends and their impact on campus housing are relatively easy to predict. For example, transportation costs have an economic impact on housing when they influence a student’s decision to enroll at an institution close to home or make the affordability and convenience of living on campus more appealing. Also, a sustained increase in enrollment will predictably require financing for more property or new housing; or, depending on debt capacity and other financial metrics, privatized student housing can become a viable option for accommodating more students. According to Lee White, higher education investment banker and executive vice president of George K. Baum and Company in Denver, Colorado, the bottom line for students is affordability: “Since 1994, privatized student housing accounts for over 120,000 beds at 200 campuses nationwide. The primary appeal of such non-recourse financed and privately owned student housing continues to be affordability, expediting the procurement and construction Talking Stick

Table of Contents Feed for the Digital Edition of Talking Stick - September/October 2008

Talking Stick - September/October 2008 Contents Online Now Vision Just In Your ACUHO-I Transitions Res Life Facilities Business Calendar Safe Harbor Think Globally, React Locally Conversations First Takes Reporting Out New Members Snapshot

Talking Stick - September/October 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.