The University of Michigan Board of Regents approved a proposed increase of 3 percent in room and board rates for residence halls and a 1 percent increase for University Housing apartment rentals for the 2011-12 school year.

The basic cost per student for a double room with a standard meal plan will be $9,468, an increase of about $276 for the entire academic year.

According to a university statement, 1 percent of the increase for residence halls will partially offset projected costs to operate and maintain the halls, services and programs necessary for living and dining on campus. The other 2 percent will fund major renovations of campus housing facilities.

"The capital investment requires a very careful balance to have adequate revenues for those and affordable room and board rates," said Phil Hanlon, university provost.

Rates in the Northwood Community Apartments will increase by an average of 1 percent, an increase of $10 to $12 per month, depending on the unit. The monthly rate for a unit will range from $511 per person for a shared two-bedroom apartment to $1,241 total for an air-conditioned, three-bedroom townhouse.

The rate increase will help offset a forecasted $2.6 million increase in employee costs, food supplies and expanded dining services. University Housing is reducing operating expenses by $1.7 million for the fiscal year 2012. Among the cuts are a reduction of staff positions through attrition, limits in overtime expenses and reducing purchases of equipment, supplies, computers and office furnishings.

University Housing has made $9.6 million in cost reductions since the fiscal year 2006.

The regents approved a 3 percent room and board increase last year as well. Room and board cost $9,192 during the 2010-11 school year.

Kyle Feldscher covers K-12 education for AnnArbor.com. He can be reached at kylefeldscher@annarbor.com or you can follow him on Twitter.