Entrepreneurs Hall

June 26, 2013

FAQs Regarding Self-Supporting MBA

Q1. UC President Mark Yudof announced that he has approved UCLA Anderson’s proposal to convert its full-time, state-supported MBA program to self-supporting status. What exactly does that mean? back to top

A: With approval of the conversion of the full-time MBA program to self-supporting status, UCLA Anderson’s full-time MBA will no longer receive any state funds to support this program. Before, the school received some state support and retained a portion of tuition and fees for the program. The school now retains all tuition for the full-time MBA program rather than receiving a combination of state funds and a portion of the student tuition and fees. The MBA program is one of six Masters programs at UCLA Anderson, five of which were established as self-supporting. The full-time MBA is now the sixth of six fully self-supporting Masters programs at UCLA Anderson.

Q2. Why did UCLA Anderson want to convert its program to self-supporting status? back to top

A: There are three primary advantages to the full-time MBA as a self-supporting program: (1) The current system for approval of full-time MBA tuition and fees can result in delayed and potentially unpredictable tuition and fee levels. Under the self-supporting tuition approval model, the timing and outcome of the approval process is more predictable, thus enabling students to plan for the tuition and fees they will need to pay. (2) The school now will also be able to allocate and compensate for faculty teaching and innovation in the full-time MBA program similar to the way it has in existing self-supporting programs – providing for greater flexibility in assigning faculty to the full-time MBA. (3) Given the clarity of the financial model, we believe that alumni and friends will be motivated to enhance their support of the school under this new financial model because of our singular dependence on self-generated funding and philanthropy.

Q3. Will tuition and fees now go up in the full-time MBA program more than in the past? back to top

A: Tuition and fees will not go up relative to the level proposed under state support. In the past, tuition has gone up significantly under the state support model. In fact, we are hoping to moderate tuition increases relative to past trends under state support.

Q4. Will the full-time MBA program conversion to state support have an impact on students? back to top

A: Full-time MBA tuition under self-support will not be any higher than what is proposed under state support and may, in fact, rise more slowly under the new model than has been the case under state funding. The new status will provide a more predictable fee-setting process, and more flexibility in allocating faculty to the full-time MBA program. The school’s provision of financial aid to full-time MBA students will be at least as high as it is now.

Q5. What are the advantages to UCLA? back to top

A: The University has been facing unprecedented challenges due to diminishing state support. This new financial model enables the university to redirect state support from UCLA Anderson to other critical priorities at the University, including undergraduate instruction. UCLA will also receive overhead payments from UCLA Anderson for centrally delivered services to Anderson.

Q6. How much will that amount to for UCLA? back to top

A: Approximately 6% of UCLA Anderson’s budget has been state supported, net of student tuition, philanthropy and other self-supporting programs. Conversion of the full-time MBA to self-supporting status provides about $7 million a year to the university from redirection of state funds no longer allocated to UCLA Anderson, and from the overhead fees that UCLA Anderson will pay to UCLA for central services. These funds can be used to support campus-wide undergraduate programs that have been adversely affected by major reductions in state support.

Q7. Is UCLA Anderson now a private institution because of this change? back to top

A: No. UCLA Anderson remains part of the University of California system exactly as before. This is a mere change to the financial status of one of UCLA Anderson’s programs. Nothing will change about UCLA Anderson’s affiliation to UCLA, or its deep connections with the rest of UCLA’s faculty, governing policies and bodies.

Q8. What effect(s) will this new status have on the full-time MBA program? back to top

A: None, other than the previously mentioned benefits for the timing of tuition approvals and greater flexibility in assigning faculty to the program. The conversion to self-supporting status will not affect full-time MBA admissions, curriculum, financial aid for students, or any of the academic requirements now in place.

Q9. Will UCLA Anderson receive any state support? back to top

A: UCLA Anderson will receive only a very small amount of state support for its undergraduate minor program in accounting and for a small portion of the cost required to support the PhD program.

Q10. How will UCLA Anderson make up the funds that were previously provided by the state? back to top

A: The school will now retain the tuition and fees that it previously did not receive. We also anticipate building new streams of revenue and benefiting from increased support from our alumni and friends.

Q11. What objections/concerns were raised about conversion of the full-time MBA to self-supporting status? back to top

A: There was a concern that UCLA Anderson would distance itself from the core of UCLA. Self-supporting status denotes a change in the funding model only, and no change in UCLA Anderson’s deep connections to the UCLA family. UCLA Anderson is also governed by UCLA and the Academic Senate, as before. Additionally, some were concerned that this conversion signals the beginning of the dissolution of the state’s commitment to public higher education in general, and to the support of the UC system in particular. Unfortunately, there has been a steady decline in state support for higher education, a trend that began some 20 years ago. UCLA Anderson’s full-time MBA conversion is a creative response to this state funding decline that provides clear advantages to the university, while fully preserving UCLA Anderson’s inextricable connections to all parts of UCLA.

Q12. When will the self-supporting status go into effect? back to top

A: The full-time MBA program will transition to self-supporting status beginning in the 13/14 academic year.

Q13. Are there other public b-schools that have self-supporting full-time MBA programs, or is UCLA Anderson’s full-time MBA the first? back to top

A: UCLA Anderson’s full-time MBA joins a handful of other MBA programs at public universities that are self supporting, including the MBA programs at the University of Virginia’s Darden School of Business and at the University of Michigan’s Ross School of Business.

The full-time MBA program joins five other nontraditional master’s degree programs at UCLA Anderson that were established as “self-supporting”, including the school’s part-time and executive MBA programs.

Contact Information

UCLA Anderson Office of Media Relations, (310) 206-7707, Media.relations@anderson.ucla.edu

Media Relations