Dive Brief:

• A new funding formula for state colleges and universities in Colorado means several schools have to turn to a reserve fund to reach a 10% proposed increase in state funding.
• The formula rewards schools that have more graduates, degrees, and underserved students, the Greeley Tribune reported. The state’s proposed budget would increase overall spending on state schools by 10%.
• The $15 million reserve fund was added as it became clear that state higher education institutions wouldn’t receive 10% increases under the new formula.

Dive Insight:

Critics say the new formula is not indicative of performance, and that it needs to be altered. The schools that were falling short under the formula included the University of Northern Colorado, which would tap $2 million of the reserve fund to receive $41.1 million in total state funding, or about 20% of its $200 million overall budget. Also on the falling-short list are Adams State, Colorado State University, the University of Colorado Boulder, and many community colleges. Metropolitan State University will receive the largest funding increase under the new formula — 15%.