2008 Woodie Awards
Minimum wage hike may mean student fee increase
Holly Meyer
Issue date: 7/11/07 Section: News
How the minimum wage increase will affect SIUE is still uncertain, but there is potential for student fee increases to offset the cost.
Even though SIUE is a state university, not all services on campus are funded by state appropriations, SIUE budget director Bill Winter said.
Certain departments on campus are not state-funded, including the Morris University Center, Campus Recreation, Student Fitness Center and University Housing. These departments rely on student fees and their profits to stay open, Winter said.
The minimum wage rate went up from $6.50 per hour to $7.50 per hour on July 1. The legislation, Senate Bill 1268, passed and signed by the governor ensures a $.25 increase annually until 2010; the minimum wage rate will be $8.25 per hour.
The increase in the minimum wage could require an increase in student fees, but it is too early to tell.
"We think we will be okay," James McDermott, Morris University Center accountant, said. "Raising prices is the last resort."
McDermott said the MUC is waiting on a new contract from U.S. Food Services that will allow products to be purchased at a cheaper rate.
"What we're trying to do is purchase products smarter and cheaper," McDermott said.
McDermott said the budget projection for the MUC from now until 2010 will only require a one percent student fee increase annually.
"That's less than the inflation rate," McDermott said.
The projection includes the annual $.25 minimum wage increase until 2010, according to McDermott.
McDermott said he expects that with the 500 more students living on campus with the opening of Evergreen residence hall that the MUC will be able to offset the additional cost.
The minimum wage increase could also have an affect for the student fees that support Campus Recreation and Student Fitness Center.
The facility is supported by student fees and profits generated from membership, Director of Campus Recreation Mick Osterander said.
There are no plans to cut back on the services or jobs offered to students as a result of the increase, according to Osterander.
"We are going to find a way to absorb it into the budget," Osterander said.
Even though SIUE is a state university, not all services on campus are funded by state appropriations, SIUE budget director Bill Winter said.
Certain departments on campus are not state-funded, including the Morris University Center, Campus Recreation, Student Fitness Center and University Housing. These departments rely on student fees and their profits to stay open, Winter said.
The minimum wage rate went up from $6.50 per hour to $7.50 per hour on July 1. The legislation, Senate Bill 1268, passed and signed by the governor ensures a $.25 increase annually until 2010; the minimum wage rate will be $8.25 per hour.
The increase in the minimum wage could require an increase in student fees, but it is too early to tell.
"We think we will be okay," James McDermott, Morris University Center accountant, said. "Raising prices is the last resort."
McDermott said the MUC is waiting on a new contract from U.S. Food Services that will allow products to be purchased at a cheaper rate.
"What we're trying to do is purchase products smarter and cheaper," McDermott said.
McDermott said the budget projection for the MUC from now until 2010 will only require a one percent student fee increase annually.
"That's less than the inflation rate," McDermott said.
The projection includes the annual $.25 minimum wage increase until 2010, according to McDermott.
McDermott said he expects that with the 500 more students living on campus with the opening of Evergreen residence hall that the MUC will be able to offset the additional cost.
The minimum wage increase could also have an affect for the student fees that support Campus Recreation and Student Fitness Center.
The facility is supported by student fees and profits generated from membership, Director of Campus Recreation Mick Osterander said.
There are no plans to cut back on the services or jobs offered to students as a result of the increase, according to Osterander.
"We are going to find a way to absorb it into the budget," Osterander said.
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