While there has been disinvestment into higher education, there is also a significant disparity in state investment for certain types of public institutions, specifically for less-resourced institutions such as HBCUs (Williams, 2020). There is not much literature that examines the relationship of formula funding or state appropriations on institutional outcomes at public Historically Black Colleges and Universities in Texas (Williams, 2020). Using a critical race theory and outcome equity lens will help provide a historical context of continued inadequate funding for Historically Black Colleges and Universities. The funding disparities and insufficient funding mechanisms have not met the demands of low-income and underserved students that HBCUs serve. This qualitative case study's primary purpose is to understand the current state funding strategies impact on a specific HBCU from its institutional and community leaders. In addition to understanding the institutional leader's perspective, the study will interview participants that work directly with the students that the HBCU serves. The Texas higher education system is underfunded; however, the current funding strategies are calculated on the base period and weighted credit hours do not equitably distribute available state funds and explain funding disparities. Serving larger diverse populations will require equitable levels of financial support. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://bibliotheek.ehb.be:2222/en-US/products/dissertations/individuals.shtml.]