Presented by: Laurie Summers, Director of Strategic InitiativesUCLA Anderson School of Management

T H E L O N G & W I N D I N G R O A D : 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 S U P P O R T I N G M O D E L

U C L A

» Fo u n d e d i n 1 9 1 9» S e co n d c a m p u s w i t h i n t h e 1 0

ca m p u s U n i ve rs i t y o f C a l i fo r n i a ( U C ) syst e m» To t a l E n r o l l m e n t : 4 3 , 2 3 9 » U n d e r g r a d u a t e : 2 9 , 0 3 3» G r a d u a t e : 1 2 , 9 3 4

» 8 0 % f ro m C a l i fo r n i a , 8 . 3 % f ro m o t h e r U S , 1 1 . 7 % o t h e r co u nt r i e s

» Fa c u l t y ( 2 , 6 5 3 ) a n d S t a ff ( 3 , 6 2 0 )

» 5 , 0 0 0 co u rs e s , 1 0 9 a ca d e m i c d e p a r t m e nt s a n d 1 2 5 + m a j o rs

Note: All numbers current as of Fall 2014

U C L A A N D E R S O N S C H O O L O F M A N A G E M E N T

» Fo u n d e d i n 1 9 3 5 ; j o i n e d A A C S B 1 9 3 9» 7 D e g re e P ro g ra m s :

• P h D• F u l l - ti m e ( F T ) M B A • F u l l y E m p l o y e d M B A ( F E M B A )• E x e c u ti v e M B A ( E M B A )• M a s t e r o f F i n a n c i a l E n g i n e e r i n g ( M F E )• G l o b a l E x e c u ti v e M B A A s i a P a c i fi c ( G E M B A

A P )• G l o b a l E x e c u ti v e M B A f o r t h e A m e r i c a s

( G E M B A A m e r i c a s )

» 2 U n d e rg ra d u ate M i n o rs :• A c c o u n ti n g & E n t r e p r e n e u r s h i p

» 2 , 0 0 7 S t u d e n t s» 1 6 5 Fa c u l t y

Note: All numbers current as of Fall 2015

D E F I N I T I O N O F A S E L F - S U P P O R T I N G P R O G R A M W I T H I N T H E U C S Y S T E M

“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

C R I T E R I A F O R S E L F - S U P P O R T I N G G R A D U AT E D E G R E E P R O G R A M S

Se l f- s upporti ng deg re e programs are requ i red to meet one or more of the fo l lowing cr i ter ia :

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 P R O F E S S I O N A L D E G R E E P R O G R A M S W I T H I N

T H E U C S Y S T E MOvera l l w i th in the UC System in are as s uch as Arch i te cture , Eng ine er ing , F ine Arts , He a l th Sc ie nces , Law, Manage ment , Mar ine Cons er vati on, Pub l ic Hea l th , etc .

With in UCLA in the areas o f Arch i te cture , Denti str y, Educati on, Eng inee r ing , Law, Manage ment , Pub l i c Hea l th

With in UCLA A nderson inc lud ing : EMBA , FEMBA , G EMBA (2 ) , MFE and now the FT MBA

59

13

6

Note: As of 2015-16 Academic Year

W H Y C O N S I D E R C O N V E R S I O N T O S E L F -S U P P O R T I N G I N T H E F I R S T P L A C E ?

» C o n c e p t h a d b e e n u n d e r s e r i o u s co n s i d e rati o n s i n c e 2 0 0 6

» U C L A A ca d e m i c S e n ate a n d t h e A A C S B re v i e ws co n d u c te d i n 2 0 0 5 b o t h h i g h l i g hte d t h e f u n d a m e nta l c h a l l e n ge to A n d e rs o n ’s f u n d i n g m o d e l u n d e r d e c l i n i n g s tate f u n d i n g

» S p e c i fi c re co m m e n d ati o n i n t h e 2 0 1 0 A A C S B M a i nte n a n c e o f A c c re d i tati o n Re p o r t

“Implementation of a Financial Self-Sufficiency model that will relieve the School of the vagaries of uncertain state support.”

- AACSB 2010 report

F I R S T S E L F - S U P P O R T I N G P R O P O S A L

» P ro p o s a l wa s t o m a ke t h e e n ti re S c h o o l o f M a n a ge m e n t s e l f - s u p p o r ti n g w h i c h i n c l u d e d d e c i s i o n - m a k i n g c o nt ro l o ve 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 ve 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 t e b u t wa s u l ti m a te l y re j e c t e 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 s ta te s u p p o r t a n d h av i n g t o 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

Submitted in Fall 2010

S E C O N D S E L F - S U P P O R T I N G P R O P O S A L

» This proposal was solely focused on the convers ion of the FT MBA funding structure from state to se l f-supporti ng

» Five existi ng sel f-supporti ng programs as wel l as the state-supported PhD and Undergraduate Minor in Accounti ng left “as is”

Submitted in Fall 2011

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 S E L F S U P P O R T I N G P R O P O S A L ?

Under th i s new model :» The FT MBA Program would be supported by student

charges that would cover the fu l l costs o f the program, inc luding campus ind i rect costs

Rather Than:» By State support combined wi th system-wide tu iti on and

fees and Profess iona l Degree Supplementa l tu iti on

Only 1 change - the funding structure for the FT MBA

W H AT W O U L D N O T C H A N G E ?

» Admiss ions cr i ter ia or processes» Curr icu lum, graduati on requirements or program governance» Size of the MBA program» Faculty commitment to and engagement in state-supported

programs» The School ’s publ ic miss ion» Governance or administrati on of the School and UCLA » Program review procedures by the Academic Senate or other

bodies

B E N E F I T S O F T H E M O V E T O S E L F - S U P P O R T I N G

» Re t u r n s ~ $ 7 M i n s t ate f u n d i n g t o t h e U C L A C a m p u s ( s ta te f u n d s a n d c a m p u s o v e r h e a d c o s t s ) w h i c h i t c a n d i re c t to o t h e r u n d e r-f u n d e d a r e a s o f c a m p u s

» T h e p ro g ra m i s “ p r o te c te d ” f r o m t h e n e gati v e e ff e c t s o f a c ro s s t h e b o a rd U C t u i ti o n l i m i t s o n i n c re a s e s

» I n c r e a s e i n f u n d ra i s i n g s i n c e t h e s e l f - s u p p o r ti n g m o d e l i s m o re t ra n s p a r e n t to d o n o rs

» F T M B A j o i n s o u r s u i te o f o t h e r s e l f - s u p p o r ti n g p ro g ra m s e n a b l i n g fa c u l t y t o b e d e p l o ye d a c r o s s t h e s i x M a s te rs p ro g ra m s

B E N E F I T S O F T H E M O V E T O S E L F - S U P P O R T I N G

» P ro v i d e s : I n c r e a s e d p r e d i c ta b i l i t y a n d s p e e d i n s e tti n g s t u d e n t fe e s

( rati fi c ati o n b y U C O P n o t Re ge n t s )

F l ex i b i l i t y to i nv e s t i n t h e p ro g ra m to i m p ro v e te a c h i n g a n d l e a r n i n g

I n c r e a s e d fi 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 i n c r e a s e s t u d e n t c h a rg e s

P R O P O S A L D E V E L O P M E N T & A P P R O VA L P R O C E S S

» N o s e t t e m p l a t e o r p r o c e s s f o r t h i s i n i ti a ti v e ; g u i d e l i n e s w e r e “ u n d e r d e v e l o p m e n t ”

November 2011Proposal submitted to UCLA Academic Senate

June 7, 2012Letter of approval sent by Senate

Chair to Executive Vice Chancellor

June - July 2012Proposal under review by UCOP and its Coordinating Council for

Graduate Affairs (CCGA)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 Further information requested

P R O P O S A L D E V E L O P M E N T & A P P R O VA L P R O C E S S

October 2012The President begins his own consultation process

August 31, 2012 CCGA rejects the Proposal

September 2012Proposal is forwarded to the President for a final recommendation

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, 2013President Yudof grants approval to the proposal

S E L F - S U P P O R T I N G P R O G R A M ( S S P ) I M P L E M E N TAT I O N

MOU discussed:» Fees» Financial a id» Remaining state-

supported programs» Faculty hir ing and

salary

» State and University fi nancial exigency

» UCLA Anderson fi nancial exigency

» Overhead costs» Recovery of pension funds» Reserves

June 2014: Three-year MOU signed; Conversion effective July 1, 2014

I M P L E M E N TAT I O N : C A M P U S O V E R H E A D C H A R G E S

Anderson as :% of tota l campus faculty, staff and students for :

» Administrati on» Campus L ibrary» Chancel lor ’s Offi ce» Student Aff airs» Graduate Div is ion

Research:» Anderson as a % of tota l

research awardsOperati on & Maintenance of P lant:» A n d e r s o n b u i l d i n g s p a c e a s % o f

t o t a l c a m p u s A s s i g n a b l e S q u a r e F e 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

The “Not So Good News”

Still a work in progressThe 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 confusionMany 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 fee cap 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

The “Not So Good News”

Delay in approvals UCOP approval of all self-supporting fees was just as delayed as the original Regents’ approval

Increased Overhead Campus overhead charges are much higher than originally projected

Short-term deficits 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

The “Good News”

Fundraising Fundraising to date has broken all records­ 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 Overloads Faculty can now receive overloads for teaching in the FT MBA Program

Financial Transparency Programs are now able to be fully costed which allows us to develop justifiable cost scenarios based on consumption, FTEs etc.

M O R E G O O D N E W S

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)

W O U L D W E D O I T A L L O V E R A G A I N ?

» Not without a pre-approved set of gu idel ines

» Hard to be a “p ioneer ”

» No one seems to apprec iate the funding we gave back to the campus

» We are not :» G i v e n c r e d i t f o r t h e s t r e n g t h o f o u r e x i s ti n g s e l f - s u p p o r ti n g p r o g r a m s» C o n s u l t e d a s “e x p e r t s ”

» T h i s i s t r u e e v e n a s m a n y d e p a r t m e n t s ( w h o h a v e n e v e r h a d a s e l f -s u p p o r ti n g p r o g r a m ) j u m p o n t h e b a n d w a g o n o f p r o p o s i n g s e l f - s u p p o r ti n g p r o g r a m s a s a m e a n s o f i m p r o v i n g t h e i r fi n a n c i a l o u t l o o k

H O W E V E R … . .

Given that the fl uctuati ons in state funding are l ikely to conti nue, overall we believe we made the right decision to maintain the excellence and competi ti veness of our fl agship program

Thank you for your ti me today!