Massachusetts' 15 community colleges play a vital role in connecting more than 100,000 residents each year with postsecondary educational opportunities and skills training. These schools have a unique opportunity to prepare students for in-demand career fields. Community college students make up the most diverse population within the state's public education system. In spite of the clear importance of community colleges, historically state funding in Massachusetts has been low by national standards and distributed without taking into account underlying campus need or system goals. This report looks back at the state's most recent attempt to improve the system for determining community college funding. It examines the environment at both the state and national level that led to the creation of a funding formula, considers the strengths and weaknesses of the formula that was devised and assesses the success of implementation efforts. It concludes that a well-developed, clearly articulated funding formula is valuable, particularly if implemented as devised, and something for today's policy makers to consider as they contemplate how to improve state support for community colleges. [This report was written by the Massachusetts Taxpayers Foundation.]