UCLA Anderson Moves Closer to Self-Supporting Funding Model
The Anderson School of Management at the University of California at Los Angeles (UCLA) moved one step closer to converting its MBA program from state-supported to self-supported, the school announced last week.
On June 7th, the Legislative Assembly of the UCLA Academic Senate approved a proposal to forgo state funding by a vote of 53 to 46. The proposal now goes to the Academic Senate for the entire University of California and to UC President Mark Yudof, who has the final say.
If the proposal wins final approval, the Anderson School will become the first mainstream UC program to rely solely on tuition and donations. It would join other business schools at top public institutions, such the University of Virginia’s Darden School of Business and University of Michigan’s Ross School of Business, which have also state cut funding ties in recent years.
“Our proposal is a response to the urgent need to find solutions to campus-wide financial challenges,” Judy Olian, dean of UCLA Anderson, said in a statement. Anderson faces dramatic cuts in state funding, and the new self-supporting funding model would give the school the authority to control tuition increases, have greater say in faculty hiring and make enhancements to its MBA program.
“We are in a different era now, and unfortunately we are in a public higher-education system that is under real stress,” Olian told Bloomberg BusinessWeek. “We have to think of innovative solutions.”
The school would take steps to make its program more streamlined and efficient as well as rely on alumni gifts in order to offset the loss of state funding. Olian told Bloomberg BW that alumni have already pledged $19 million in gifts to the school on the condition that the program become self-sufficient.
Under the Anderson proposal, state support that otherwise would flow to UCLA Anderson would instead be available to the UCLA campus for other programs that have also been hit by tough state budget cuts. Campus budget officials estimate that the net financial gain to the campus would be $8.8 million annually.
Learn more about UCLA Anderson’s self-supporting funding proposal.