The Anderson School of Management at the University of California at Los Angeles is preparing to forgo public funding in the face of California’s budget crisis and grave doubts about the state’s ability to pay for higher education, according to a report in the Financial Times on Monday, September 6.
The FT reported that the business school plans to look to private donors to fill the funding gap. Anderson’s decision to opt out of public funding awaits approval by Mark Yudof, president of the UC system.
California faces a budget deficit of some $20 billion for 2010-11. The University of California system itself is staring at a funding shortfall of $800 million, with UCLA’s coffers accounting for $200 million of that amount. That shortfall, which represents 20% of UCLA’s core revenues, reflects a $117 million cut in state funds as well as $84 million in unfunded costs such as utility cost increases, benefits, retirement contributions and faculty merits–costs that the campus will have to pay–according to an June 10 article in UCLAToday. Because of this, the article said, the university’s operating units would have to make $33 million in budget cuts and pay $40 million for unfunded cost increases.