The development and use of the faculty staffing forumla for Colorado, prepared by the Association of Public College and University Presidents (APCUP), is examined, and a recent major attempt to update or modify the formula is described, along with the outcome. Based on the work of representatives from many campuses, a large scale computer simulation was developed, using as input numbers of full-time-equivalent faculty and students for each two-digit code of the Higher Education General Information Survey and for four student levels. The student-faculty ratios were initially determined for each discipline/level combination, and by overlaying the student mix for each campus on the matrix of ratios, projections were made of the total faculty needed by each campus. The first iteration of the process resulted in substantial reallocation of faculty both within and between campuses. Subsequent iterations caused the individual ratios to be adjusted based upon experience, campus data, and analyses of individual campus priorities. The 4 x 36 matrix clearly differentiates by level of instruction and by discipline at the same time equity in the distribution of resources is promoted by requiring all campuses to request resources at the same productivity level for instruction at a given level and discipline. Role differentiation is promoted by overlaying each campuses' student mix, by discipline and level, on the matrix of ratios. It is suggested that the formula achieved the goal of moderating the decline of faculty resources but failed to reduce the general debates over equity, role differentiation, and appropriate funding levels. A new approach that reduces line item accountability and that is compatible with increased budget flexibility has been approved. (SW)