Dive Brief:
- A 4,200-square-foot penthouse set to house incoming NYU President Andrew Hamilton and serve as a university event space is getting a major renovation that could cost more than $2 million, drawing negative attention to the university.
- The New York Times reports that renovation permits with the city cite the project's price as $1.1 million, but contractors and architects say it could be double that, with any interior decorating expenses not included.
- An NYU spokesman told the New York Times that the renovation is not specifically for Hamilton but a project that will set the university up in the long-term as a space to house future presidents and host fundraising events, as well as visiting VIPs.
Dive Insight:
While NYU is private and will not spend taxpayer dollars to make its renovations, the criticism comes along with the rising level of average student debt at a university that is known for providing relatively little financial aid to help cover its very high tuition.
Public colleges and universities in Illinois have had their own financial scandals this year, as legislators and taxpayers found out about lavish perks for the president of the College of DuPage as well as a $760,000 severance package. The state recently approved two new bills limiting the amount trustees can offer in severance packages and restricting their autonomy in other ways.
The problem with legislative restraints — becoming more common for public colleges and universities across the country — is that they may make these schools less competitive. Especially when those like NYU are free to spend money as they wish and ride out public criticism.