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Summer 2003 CalBusiness  
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Haas School Feels Some Effects of California Budget Deficit

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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Distance Learning Classroom

Haas Opens Distance Learning Classroom

In the spring, the Berkeley-Columbia Executive MBA program and the Center for Executive Development held the first classes in the Haas School’s new distance-learning classroom. This newclassroom allows the school to leverage its faculty and expertise, extend its educational outreach, and strengthen corporate relationships.

The creation of the classroom was made possible through a $900,000 gift from SBC Foundation for state-of-the-art distance learning technology and a $715,000 gift from Dong Koo Kim for the physical space. The classroom has four installed video cameras and is equipped to webcast live and to transmit classes via IP and ISDN video conference technology.

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