Although the gloomy economy and lagging state revenues have ended most state-funded construction on North Carolina campuses, the jackhammers are not entirely silent.

At North Carolina State University, for example, the Talley Student Center at North Carolina State is being gutted, renovated, and expanded — at a price of $120 million.

The University of North Carolina system took a $406 million hit in operating appropriations from the state, and no new university capital projects have been authorized by the General Assembly since the 2007-08 session. But Talley is in a category of buildings that can be built because they are “revenue-producing.” That is, students will pay most of the debt service through their student fees.

An additional per-student fee of $290, which will remain in effect for the next 25 years, is being phased in over four years. The fee represents nearly a 40 percent increase over 2009 student fees. (Tuition and fees already have gone up 27 percent since 2007 at N.C. State.)

The Talley Student Center is small and rundown and clearly needs renovation. Built in 1972, the center was designed for student activities and cultural resources at a time when the student population was 14,000. It is nearly 34,000 today. Talley houses an art museum, university dining venues, and other campus organizations.

But the elaborate renovation is somewhat surprising since a 2009 survey of N.C. State students revealed that 60 percent opposed raising fees to pay for renovating and expanding the center. It is true that, according to the fee-proposal recommendation from N.C. State’s student government, 57 percent of students “do see a need for increased funding in the Atrium Food Court and Talley Student Center.” But that might have meant improvements on a much more modest scale. Furthermore, the General Assembly authorizes funds for critical repairs (such as bringing buildings up to code) from a “repairs and renovations” account each year, and that could have been used for Talley.

Indeed, some students were outspoken in their opposition. Vidya Sankar and Dawn Iglesias questioned the decision before the N.C. State Board of Trustees in November 2009, asking if the university considered “quality of education a top priority.” The students suggested that N.C. State was “spending in areas that are not critical during a time when budgets are being cut.” A Facebook group, “Rally Against Talley,” is another sign of dissent.

The original plan for the renovations was even more expensive, totaling $150 million. According to N.C. State’s student newspaper, then-interim chancellor Jim Woodward backed off from asking the UNC Board of Governors for approval.

Even so, the $120 million tab is still somewhat expensive compared to centers at other campuses. UNC-Charlotte completed a student center in 2009 for $65 million — about half of what N.C. State will spend. Charlotte’s center is 196,000 square feet, putting the cost at $331 per square foot. By contrast, the Talley Center, at 284,000 square feet, will cost $422 per square foot, assuming no cost overruns.

From the university’s promotional material, it is clear that N.C. State administrators want a fancy student center on a scale with what it considers peer universities. The new-and-improved Talley Center will boast improvements such as a “marché-style” food court with vendors offering food from across the world, more lounges for relaxation, a bookstore and coffee shop, retail space, expanded and improved areas for student organizations, an amphitheater for outdoor movies and events, and more green space around the exterior of the building.

Talley may prove to be a sound investment. It undoubtedly will become a centerpiece of N.C. State’s campus life and recruiting efforts. It may attract new students and should serve the existing ones better. However, especially in the current economic climate, students will pay a stiff price for such luxury.

Will Jakes is an intern with the John W. Pope Center for Higher Education Policy (popecenter.org).