THE LONG & WINDING ROAD:
T R A N S I T I O N I N G F R O M A S TAT E T O S E L F
SUPPORTING MODEL
Presented by:
Laurie Summers, Director of Strategic Initiatives
UCLA Anderson School of Management
UCLA
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Founded in 1919
Second campus within the 10
c a m p u s U n i v e r s i t y o f C a l i fo r n i a
(UC) system
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To t a l E n r o l l m e n t : 4 3 , 2 3 9
Undergraduate: 29,033
Graduate: 12,934
8 0 % f r o m C a l i fo r n i a , 8 . 3 % f r o m
other US, 11.7% other
countries
Fa c u l t y ( 2 , 6 5 3 ) a n d S t a f f
(3,620)
5,000 courses, 109 academic
departments and 125+ majors
Note:
All numbers current as of Fall 2014
UCLA ANDERSON SCHOOL OF MANAGEMENT
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Founded in 1935; joined AACSB 1939
7 Degree Programs:
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2 Undergraduate Minors:
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PhD
Full-time (FT) MBA
Fully Employed MBA (FEMBA)
Executive MBA (EMBA)
Master of Financial Engineering (MFE)
Global Executive MBA Asia Pacific (GEMBA
AP)
Global Executive MBA for the Americas
(GEMBA Americas)
Accounting & Entrepreneurship
2,007 Students
1 6 5 Fa c u l t y
Note:
All numbers current as of Fall 2015
DEFINITION OF A SELF-SUPPORTING
PROGRAM WITHIN THE UC SYSTEM
“Self-supporting programs (SSP) allow the University to serve additional
students above and beyond the resources provided by the state while fulfilling
demonstrated higher education and workforce needs…
These programs will receive no state-support; however, they have the potential
to generate resources that would enhance the quality, access, and affordability
of core academic programs and departments.”
- Policy on Self-Supporting Graduate Degree Programs, September 2011
CRITERIA FOR SELF-SUPPORTING
G R A D U AT E D E G R E E P R O G R A M S
S e l f - s u p p o r t i n g d e g re e p ro g ra m s a re re q u i re d t o m e e t o n e o r
m o re o f t h e fo l l o w i n g c r i te r i a :
Primarily serve a non-traditional population, such as full-time employees, mid-career
professionals, international students and/or students supported by their employers;
Be offered through an alternative mode of delivery, such as online instruction or a
hybrid model;
Be alternatively scheduled, such as during evenings, weekends, and summers;
Be offered in an alternative location (e.g. off-campus centers)
N U M B E R O F S E L F - S U P P O R T I N G G R A D U AT E
PROFESSIONAL DEGREE PROGRAMS WITHIN
THE UC SYSTEM
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O v e ra l l w i t h i n t h e U C Sy s te m i n a re a s s u c h a s A rc h i te c t u re ,
E n g i n e e r i n g , F i n e A r t s , H e a l t h S c i e n c e s , L a w, M a n a g e m e n t ,
M a r i n e C o n s e r v a t i o n , P u b l i c H e a l t h , e tc .
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W i t h i n U C L A i n t h e a re a s o f A rc h i te c t u re , D e n t i s t r y,
Ed u c a t i o n , E n g i n e e r i n g , L a w, M a n a g e m e n t , P u b l i c H e a l t h
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W i t h i n U C L A A n d e rs o n i n c l u d i n g : E M B A , F E M B A , G E M B A ( 2 ) ,
MFE and now the FT MBA
Note:
As of 2015-16 Academic Year
WHY CONSIDER CONVERSION TO SELF SUPPORTING IN THE FIRST PLACE?
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Concept had been under
s e r i o u s c o n s i d e ra t i o n s i n c e
2006
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UCLA Academic Senate and
the AACSB reviews
conducted in 2005 both
highlighted the fundamental
c h a l l e n g e t o A n d e r s o n ’s
funding model under
declining state funding
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Specific recommendation in
the 2010 AACSB Maintenance
of Accreditation Report
“Implementation of a Financial SelfSufficiency model that will relieve the School
of the vagaries of uncertain state support.”
- AACSB 2010 report
FIRST SELF-SUPPORTING PROPOSAL
Submitted in Fall 2010
» P ro p o s a l wa s to m a ke t h e e n t i re
S c h o o l o f M a n a ge m e nt s e l f supporting which included decision m a k i n g c o n t ro l ove r fa c u l t y s a l a r i e s
» P ro p o s a l wa s a p p ro v e d b y t h e
S c h o o l ’s fa c u l t y a n d wa s
re v i e w e d / d i s c u s s e d b y t h e U C L A
A c a d e m i c S e n a te b u t wa s u l t i m ate l y
re j e c te d
» C o n c e r n s i n c l u d e d t h e sy m b o l i s m o f
t h e S c h o o l c o m p l e te l y s e ve r i n g sta te
s u p p o r t a n d h av i n g to o m u c h
u n re g u l a te d p o w e r /a u t h o r i t y
SECOND SELF-SUPPORTING PROPOSAL
Submitted in Fall 2011
» Th is p ro p o sa l wa s s o l e l y fo c u s e d
o n t h e co nve rs io n o f t h e F T M BA
f u n d ing st ru c t u re f ro m state to
se lf - su p p o rt ing
» F ive ex i st i n g s e l f - s up portin g
p ro g ram s a s we ll a s t h e state su p p o rte d Ph D a n d U n d e rg ra du ate
M in or in A c count ing lef t “as is ”
W H AT W O U L D C H A N G E W I T H T H E S E C O N D
SELF SUPPORTING PROPOSAL?
Only 1 change - the funding structure for the FT MBA
Un d e r t h is n ew mo d e l:
» T h e F T M BA Pro g ra m wo u ld b e su p p o rte d by st u d e nt
c h a rge s t h at wo u ld cove r t h e f u ll co st s o f t h e p ro g ra m,
in c lu d in g ca mp u s in d ire c t co st s
R at h er Th a n :
» By S tate su p p o rt co mb in e d w it h syste m - wid e t u it io n a n d
fe e s a n d Pro fe ssio n a l D e g re e S u p p le me nta l t u it io n
W H AT W O U L D N O T C H A N G E ?
A d missio n s c rite ria o r p ro c e sse s
C u rric u lu m , g ra d u at ion re q u ire me nt s o r p ro g ra m gove rn a n ce
S ize o f t h e M BA p ro g ra m
Fa c u lt y co mmit me nt to a n d e n ga ge me nt in state - su p p o rte d
p ro g ra ms
» T h e S c h o o l’s p u b lic missio n
» G ove rn a n c e o r a d min ist rat io n o f t h e S c h o o l a n d U C L A
» P ro g ra m review p ro c e d ure s by t h e A ca d e mic S e n ate o r o t h e r
b o d ie s
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BENEFITS OF THE MOVE
TO SELF-SUPPORTING
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Returns ~$7M in state funding to the UCLA Campus (state funds
and campus overhead costs) which it can direct to other under funded areas of campus
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The program is “protected” from the negative effects of across the
board UC tuition limits on increases
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Increase in fundraising since the self -supporting model is more
t ra n s p a r e n t t o d o n o r s
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FT MBA joins our suite of other self -supporting programs enabling
faculty to be deployed acro ss the six Masters programs
BENEFITS OF THE MOVE
TO SELF-SUPPORTING
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Provides:
 Increased predictability and speed in setting student fees
(ratification by UCOP not Regents)
 Flexibility to invest in the program to improve teaching and
learning
 I n c r e a s e d f i n a n c i a l a i d d u e t o i n c r e a s e i n f u n d ra i s i n g a n d a b i l i t y
to increase student charges
PROPOSAL DEVELOPMENT
& A P P R O VA L P R O C E S S
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N o s e t t e m p l a t e o r p r o c e s s fo r t h i s i n i t i a t i ve ; g u i d e l i n e s w e r e
“under development ”
November 2011
Proposal submitted to
UCLA Academic Senate
June 7, 2012
Letter of approval sent by Senate
Chair to Executive Vice Chancellor
Proposal reviewed by the UCLA Academic Senate
and its committees, sometimes twice
Written reports from each committee had to be
responded to and the Dean, the Chairman and
Faculty members attended some meetings as well
June - July 2012
Proposal under review by UCOP
and its Coordinating Council for
Graduate Affairs (CCGA)
Further information requested
PROPOSAL DEVELOPMENT
& A P P R O VA L P R O C E S S
August 31, 2012
CCGA rejects the
Proposal
September 2012
Proposal is forwarded
to the President for a
final recommendation
October 2012
The President begins
his own consultation
process
Rejected on the basis that it does
“…not conform to the intent of the
self-supporting policy nor the
specific criteria for self-supporting
status”
Self supporting policy is under
review but will not be finalized
until 2014
June 23, 2013
President Yudof grants
approval to the
proposal
SELF-SUPPORTING PROGRAM (SSP)
I M P L E M E N TAT I O N
June 2014: Three-year MOU signed;
Conversion effective July 1, 2014
MOU discussed:
» Fees
» Financial aid
» Remaining state supported programs
» Faculty hiring and
salary
» State and University
financial exigency
» UCLA Anderson financial
exigency
» Overhead costs
» Recovery of pension
funds
» Reser ves
I M P L E M E N TAT I O N :
CAMPUS OVERHEAD CHARGES
An d e rs o n as :
% o f to ta l ca mp u s fa c u lt y,
staff an d st u d ent s fo r:
» A d min ist rat io n
» C a mp u s Lib ra r y
» Ch a n c ellor ’s O ff ic e
» S t u d ent A ffa irs
» Gra d u ate D ivisio n
Res earc h :
» A n d e rso n a s a % o f to ta l
researc h award s
O p e rat i o n & M ai nte nan ce
o f P lant :
» A n d e rs o n b u i l d i n g s p a c e a s
% o f to ta l c a m p u s
A s s i g n a b l e S q u a re Fe e t
O N E Y E A R + I N : W H E R E W E A R E T O D AY
T h e “ N o t S o Go o d News ”
Still a work in progress
The Campus and the School are continuing to work out this new
financial relationship
Phased in all at once
There was supposed to be a three-year “phase-in” of overhead
charges but the campus decided to do it all at once in Year One
Campus confusion
Arbitrary fee cap
Many on campus do not understand how little has changed in how
we function/interface with campus, they think we now run
completely independent of UCLA and that we are “rich”
Arbitrary 5% cap on all student charges imposed by the President; so
we have not been able to achieve the tuition flexibility that we had
hoped for now, does not allow us to take into account our
understanding of the student market
O N E Y E A R + I N : W H E R E W E A R E T O D AY
T h e “ N o t S o Go o d News ”
Delay in approvals
Increased Overhead
Short-term deficits
UCOP approval of all self-supporting fees was just as delayed as
the original Regents’ approval
Campus overhead charges are much higher than originally projected
We are not making money - did not expect this during
implementation but expect to over time
O N E Y E A R + I N : W H E R E W E A R E T O D AY
T h e “Go o d News ”
Fundraising
Fundraising to date has broken all records
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Faculty Overloads
Financial Transparency
Received an initial infusion of funds from donors once SSP approved
$100M Gift from Marion Anderson for faculty and student support and
a new building
Current ‘Into the Next Campaign’ we have surpassed our initial
campaign goal of $175M and raised it to $300M (Campaign sunsets in
2019)
Faculty can now receive overloads for teaching in the FT MBA Program
Programs are now able to be fully costed which allows us to develop
justifiable cost scenarios based on consumption, FTEs etc.
MORE GOOD NEWS
FT MBA Applications
Applications to the FT MBA program have hit record highs in the
past three years:
• 3,124 (2013)
• 4,129 (2014)
• 3,529 (2015)
WOULD WE DO IT ALL OVER AGAIN?
» N o t wit h o u t a p re - a p p rove d set o f g u id e lin e s
» H a rd to b e a “ p io n e e r ”
» N o o n e seems to a p p re c iate t h e f u n d ing we gave b a c k to
t h e ca mp u s
» We a re n o t :
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Given credit for the strength of our existing self -supporting programs
C o n s u l t e d a s “ex p e r t s ”
» This is true even as many departments (who have never had a self supporting program) jump on the bandwagon of proposing self -supporting
programs as a means of improving their financial outlook
HOWEVER…..
Given that the fluctuations in state funding are
likely to continue, overall we believe we made
the right decision to maintain the excellence
and competitiveness of our flagship program
Thank you for your time today!