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UCLA faculty votes on privatizing business school to break free of state funding ebbs
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LOS ANGELES (AP) — A proposal that would privatize the University of California Los Angeles' business school but allow it to remain affiliated with the state university is moving ahead.

A faculty council called the Legislative Assembly will vote on the proposal on June 7. The proposal was rejected by a graduate student council, UCLA's newspaper, The Daily Bruin reported this weekend.

Under the proposal, the Anderson School of Management would no longer receive state funding, instead relying on tuition, donations and fundraising, like private schools. However, it would keep its affiliation with UCLA.

Suzanne Shu, an Anderson School professor, told the Bruin that financial independence would allow Anderson to better compete with private business schools.

Other publicly run business schools, such as the University of Michigan, have successfully spun off as financially independent institutions. This would be a first for a UC school.

"Quality will be able to improve if we have more control over how the funds are used," she said.

Tuition is not anticipated to increase as any shortfall created by the loss of state funding would be made up by fundraising. In 2010, when the proposal surfaced, Anderson relied on state funding for only about 6 percent of its budget.

The idea has been under review since October 2010 by UCLA's Academic Senate. After the Graduate Council rejected the idea in a 7-3 vote, a group of Anderson faculty successfully appealed to allow a vote by the 120-member Legislative Assembly.

If the assembly approves the idea, it will be presented to the University of California Academic Senate and the Office of the President for further review.

The Anderson School is a leading business institution that grants an array of graduate degrees and conducts research into various fields, including real estate, economics, entrepreneurship and finance.