ALUMNI QUARTERLY
SUMMER 1997

Dollars and Scents
McGill's new self-funded programs are generating debate on campus. Is the university an accessible public institution or an executive training institute?

by Patrick McDonagh

Fully funded, privately funded, self-funded. Like the proverbial rose, would a program by any other name smell as sweet? Perhaps, but roses and academia rarely meet outside plant science courses and staid receptions. So what is in a name? McGill's self-funded degree programs have been re-named many times since their recent inception. The words "private programs" had McGill's public relations office on the defensive with inquiries. But whatever the label, the defining factor is that, unlike McGill's other degree programs, these programs receive no government subsidies as do most McGill degree programs. Consequently, the fees are high, from $12,000 and up, compared to regular in-province tuition of $1,680.

Self-funded programs have sprouted like spring flowers at McGill over the past two years. That is a very sweet smell indeed, according to some. Vice-president (Academic) Bill Chan believes the self-funding route provides programs that McGill wouldn't have otherwise--without competing with traditional programs.

"These programs target non-traditional student populations: government officials and business people, for instance," Chan says. "Public funding shouldn't subsidize activities of the university benefiting the government or the private sector." Hence, Canadian and Quebec taxpayers won't be paying for executive MBAs, or international students in business or dentistry any more.

But some find the programs have an unpleasant odor, not a sweet smell. "There is no difference between a self-funded program and a private program," according to Anna Kruzynski, the graduate student association vice-president of university affairs. "McGill just doesn't want the words 'private programs' to show up on the pages of The Gazette." Indeed, an article on McGill's US$40,000 International Master's Program for Practising Managers had phones ringing off the hook in McGill's public relations office. The article neglected to mention that the regular McGill MBA for Quebec students is still heavily subsidized and available at just 15 percent of the actual cost.
McGILL'S SELF-FUNDED PROGRAMS
  • Masters in Economic Policy Management: $44,000 for 2 years
  • International Master's Program for Practising Managers: US$40,000 for 16 months
  • International students, MBA: $16,000 per year
  • International students, BCom: $12,000 per year
  • Master's in Management- Manufacturing: $25,000 for 16 months
  • International Students, dentistry: $32,000 per year

Whatever the name, self-funded programs are taking root vigorously, and not only at McGill. Ten universities across Canada--including the Université du Québec à Montréal and Concordia University in Montreal--run executive MBA programs that support themselves financially. Is this an example of natural selection in the academy, and a competitive economy contributing to the flowering of a new academic species? Or is McGill creating a two-tiered system of public and self-funded programs that will compete with each other for funding and professors?

So far, the faculties of management, dentistry and engineering are the only ones to offer self-funded programs - largely because employers and governments are willing to pay the price to acquire knowledge and technical skill. However, some at McGill are worried that self-funded programs are the slippery slope to a private univeristy.

On May 7, 1997, the McGill Senate, the academic decision-making body, adopted guidelines after an intense and polarized debate. The guidelines say self-funded programs must maintain high standards like other McGill programs. As well, academic staff teaching in the self-funded programs must contribute to scholarship and research and be evaluated for tenure in the same way as all McGill academics. The guidelines go on to say that students in self-funded programs must meet the admission standards established by Senate, and self-funded programs must "address the issue of accessibility" for academically outstanding students.

The other major issue is profits. In the 1996-97 academic year, self-funded programs generated $1.5 million in tuition revenue, and they are expected to bring in $2.6 million in 1997-98. McGill has decided the minimum charge for a self-funded program will be no less than the full cost for a publicly funded program, which varies from faculty to faculty, but generally is $13,000. But faculties can charge more than that - whatever the market will bear - and make a profit. University finance officials say they can't assess what profits have been made to date because the costs associated with self-funded programs are not entirely clear. But one thing is certain: if there are to be any profits in the future, they will be shared with all faculties.

Beginning this fall, 70 percent of the revenue stays with the sponsoring faculty, while the remaining 30 percent goes to the university's central budget. Then, 25 percent of the university's share is distributed among all the other faculties according to their proportion of the university's budget.

For example, consider the new Master's in Management-Manufacturing program. Under the new rules, of the $25,000 tuition for 16 months, some $17,500 will go to the sponsoring faculties, Management and Engineering, and $7,500 will go to the university. The university then keeps 75 percent and divvies up the remaining 25 percent, or $1,875, among other faculties.

Profits are not the issue for some. Graduate student Kruzynski argues that the rules came in too late. "The guidelines don't address the real issues. The university has never had an open debate on whether we even want self-funded programs."

Social Work professor Eric Shragge is also uneasy. "The policy is very vague. Will the self-funded programs remain small and marginal, or are they the future? How would social work programs fare if they had to be self-funded?"

Most of the programs are in management. "It's difficult to say that these programs are less accessible to students because a number of the programs wouldn't even exist except for full-cost funding," argues Wallace Crowston, Dean of Management. Jan Jorgensen, who designed the master's degree in Economic Policy Management (EPM) program, expands: "We felt it wouldn't be appropriate for the government to subsidize a program meant for overseas students." And, as Chan notes, Columbia University in New York City has a similar program with a comparable tuition. "There's no reason we shouldn't offer programs of the same quality at the same cost," he says.

The perks aren't only financial. According to Vince Thompson, co-director of the Masters in Management-Manufacturing program beginning this September, "This program created 11 new courses, most of them available to other students. Plus, the program will contribute $20,000 to the library and $30,000 to a graduate student research lab."

But McGill is unsure what the programs will mean in the long run. In the Senate discussion, English professor Leanore Lieblein successfully proposed an amendment to reaffirm McGill as a "publicly funded institution that recognizes that in selected instances, self-funded programs may allow the university to move toward greater financial autonomy....".

However, even with this provision, Political Science professor Sam Noumoff is concerned. "Will the worthiness of a program be defined by its ability to make money?" he wonders. "I fear we're being piece-mealed into privatization. By the time anyone wakes up, it will have reached critical mass and be irreversible."

In response to concern about creeping privatization, Chan is quick to assert that the university is no danger of becoming a private institution. "In Quebec, student tuitions account for 15 to 18 percent of the university operating budget--that's the lowest of any publicly funded system in North America," he points out. "Don't even talk about privatization!" Chan argues that there are several new government-subsidized programs at McGill--an environmental engineering option in the civil engineering master's program, a PhD in social work offered with the Université de Montréal, and a master's program in dental science. McGill will be learning to manage the hybrid of programs, government funded and self-funded, in the coming years.