Presented by: Laurie - PowerPoint Presentation

Slide1

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

The long & winding road:

transitioning from A state to self supporting MODELSlide2

UCLAFounded in 1919Second

campus within the 10 campus University of California (UC) system

Total Enrollment:

43,239 Undergraduate: 29,033Graduate: 12,93480% from California, 8.3% from other US, 11.7% other countriesFaculty (2,653) and Staff (3,620)5,000 courses, 109 academic departments and 125+ majors

Note: All numbers current as of Fall 2014 Slide3

UCLA Anderson School of ManagementFounded in 1935; joined AACSB 1939

7 Degree Programs:

PhDFull-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)

2 Undergraduate

Minors:

Accounting & Entrepreneurship2,007 Students165 Faculty

Note: All numbers current as of Fall 2015

Slide4

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 2011Slide5

Criteria for Self-supporting Graduate Degree Programs

Self-supporting degree programs are required to meet one or more of the following criteria:

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)Slide6

Number of Self-supporting Graduate Professional Degree Programs Within the UC System

Overall within the UC System in areas such as Architecture, Engineering , Fine Arts, Health Sciences, Law, Management, Marine Conservation, Public Health, etc.

Within UCLA in the areas of Architecture, Dentistry, Education, Engineering, Law, Management, Public Health

Within UCLA Anderson including: EMBA, FEMBA, GEMBA (2), MFE and now the FT MBA

59

13

6

Note: As of 2015-16

Academic

YearSlide7

Why Consider Conversion to Self-Supporting in the First Place?

Concept had been under serious consideration since 2006

UCLA Academic Senate

and the AACSB reviews conducted in 2005 both highlighted the fundamental challenge to Anderson’s funding model under declining state fundingSpecific recommendation in the 2010 AACSB Maintenance of Accreditation Report

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

.”

- AACSB 2010 reportSlide8

First Self-supporting ProposalProposal was to make the

entire School of Management

self-supporting which included decision-making control over faculty salaries

Proposal was approved by the School’s faculty and was reviewed/discussed by the UCLA Academic Senate but was ultimately rejectedConcerns included the symbolism

of the School completely severing state support and having too much unregulated power/authority

Submitted in Fall

2010Slide9

second Self-supporting ProposalThis proposal was solely focused

on the

conversion of the

FT MBA funding structure from state to self-supporting Five existing self-supporting programs as well as the state-supported PhD and Undergraduate Minor in Accounting left “as is”

Submitted in Fall

2011Slide10

What Would Change with the second self supporting proposal?Under

this new

model:

The FT MBA Program would be supported by student charges that would cover the full costs of the program, including campus indirect costs Rather Than:By State support combined with system-wide tuition and fees and Professional Degree Supplemental tuition

Only 1 change - the funding structure for the FT

MBASlide11

What Would Not Change?Admissions criteria or processes

C

urriculum

, graduation requirements or program governanceSize of the MBA programFaculty commitment to and engagement in state-supported programsThe School’s public missionGovernance or administration of the School and UCLA Program review procedures by the Academic Senate or other bodiesSlide12

Benefits of the Move to Self-Supporting

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

The program is “protected” from the negative effects of across the board UC tuition limits on increasesIncrease in fundraising since the self-supporting model is more transparent to donorsFT MBA joins our suite of other self-supporting programs

enabling faculty to be deployed across the six Masters programsSlide13

Benefits of the Move to Self-Supporting

Provides:

Increased predictability and speed in setting student fees (ratification by UCOP not Regents)

Flexibility to invest in the program to improve teaching and learningIncreased financial aid due to increase in fundraising and ability to

increase student chargesSlide14

Proposal Development & Approval Process

No set template or process for this initiative; guidelines were “under development”

November 2011

Proposal

submitted to UCLA Academic

Senate

June 7, 2012

Letter of approval sent by Senate Chair to Executive Vice Chancellor

June - July 2012

Proposal 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 requestedSlide15

Proposal Development & Approval Process

October 2012

The President begins his own consultation process

August 31, 2012

CCGA rejects the

Proposal

September 2012

Proposal 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, 2013

President Yudof grants approval to the proposalSlide16

Self-Supporting Program (SSP) Implementation

MOU discussed:

Fees

Financial aidRemaining state-supported programsFaculty hiring and salary

State and University financial exigencyUCLA Anderson financial exigencyOverhead costsRecovery of pension funds

Reserves

June 2014: Three-year MOU signed;

Conversion

effective July 1, 2014Slide17

Implementation: Campus Overhead Charges

Anderson

as:

% of total campus faculty, staff and students for:AdministrationCampus LibraryChancellor’s OfficeStudent Affairs

Graduate Division

Research:

Anderson as a % of total research awards

Operation &

Maintenance

of

Plant:

Anderson building space as

%

of total campus Assignable Square FeetSlide18

One Year+ In: Where We are TodayThe “Not So Good 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

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 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 marketSlide19

One Year+ In: Where We are TodayThe “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 timeSlide20

One Year+ In: Where We are TodayThe

“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

.Slide21

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)Slide22

Would We Do it All Over Again?Not without a pre-approved set of guidelines

Hard to be a “pioneer”

No one seems to appreciate the funding we gave back to the campus

We are not:Given credit for the strength of our existing self-supporting programsConsulted as “experts” 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 outlookSlide23

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 programSlide24

Thank you for your time today!