The UCLA Academic Senate on Thursday approved a proposal to convert the Anderson School of Management M.B.A. program to a self-supporting institution.

The 53-46 vote is a major step towards freeing the Anderson M.B.A. program from continued cuts in state funding. The Anderson School would give up $8.8 million a year in state funding, but would be free to pursue funding from private foundations and other sources in addition to existing student tuition and fees.

“Our proposal is a response to the urgent need to find solutions to campus-wide financial challenges,” said Judy Olian, dean of Anderson.

The proposal next goes to the University of California system-wide Academic Senate and then to UC President Mark Yudof, who has the final say.