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Student fees are rising and budgets are being reduced somewhat at the Haas
School of Business this spring as a result of state
government efforts to address the enormous $35 billion
budget shortfall facing California. But Dean Tom Campbell
says the school has been coping fairly well to date
because Haas is not as dependent on state funds as other
parts of the University of California.
“All of us are concerned about the budget, but
I think we are doing all right,” said Campbell.
“While we would have preferred to expand budgets
rather than make any cuts, we have not had to noticeably
reduce services so far.” About 31% of the Haas
School’s $41 million annual budget is supported
by state funds. The remainder is generated by the school’s
self-supporting academic programs, fund-raising, and
income from the endowment.
The largest impact of the budget situation at Haas
will likely be rising student fees. Students in some
programs are already paying an increase in fees this
spring of about 10%. The UC Board of Regents has put
off setting additional increases in student fees for
the fall until mid summer, after the California State
Legislature and the Governor have arrived upon a final
budget. Fees for the state-supported Full-time Berkeley
MBA Program are projected to rise by as much as $3,500
for California residents and $4,000 for non-residents.
Despite the jump in fees, the Haas School will not
benefit much if at all from the increases—most
of which will be absorbed by the university system and
Berkeley campus. “For Haas and its students, the
unhappy news of a 2003-04 fee increase is compounded
by the further disappointment that the school’s
budget will not increase significantly, and will, in
fact, be reduced overall,” said Andy Shogan, associate
dean for instruction.
Fees at the Haas School vary widely because some of
its programs are self-supporting—that is, they
receive no state funds, such as the Evening & Weekend
MBA Program—while others are state supported,
such as the Full-time MBA Program and the Undergraduate
program. The student fees for a state-supported degree
program do not cover the program’s full costs.
The difference is covered by funds raised externally
by the dean. Many of the services that are considered
essential in any top ranked MBA program—such as
the Haas School’s comprehensive career services—are
supported by externally raised funds. Haas works hard
to find financing for these services, while competitor
schools cover them directly from their market rate tuition.
One of Dean Campbell’s key objectives is to increase
annual giving from alumni, friends, and corporations
to match the giving levels achieved by private business
schools. “As state support of our school continues
to diminish, we will have an even greater need to call
upon our loyal alumni, donors, and friends,” he
said. “With their financial assistance, we can
ensure that the Haas School takes its place among the
handful of dominant business schools in the world.”
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