The University of Pennsylvania will between $35,000 and $40,000 build a new production studio for its campus radio station, WXPN, according to a report in the Daily Pennsylvanian.

The move came as a surprise because of the station's recent financial problems.

WXPN's governing board approved the expenditure, saying the new studio would give the station a modern facility. Governing Board Chairman James Davis cited money saved on future repair equipment as justification for the gram. "Hopefully, these savings amount to the amount spent," he said.

Financial problems still cloud the station's future, however. According Governing Board Member David. "We knew that the station could pay for the studio out of its general funds, and it will be given as a gift." He added that "The university is aware they are not likely to be paid back."