Texas community colleges warned that performance-based funding is creating “growing pains” after the state altered formula weights for outcomes, citing an appropriation cap and higher-than-expected student success results. Leaders described how Texas’ outcomes-based funding model has increased funding obligations faster than projected. The story describes how HB 8, passed in 2023, ties community college funding to student outcomes such as completion of in-demand credentials and transfers to four-year colleges. Since implementation, reported outcomes have outperformed budget assumptions, including increases in graduating credentials and enrollment growth. After the Texas Higher Education Coordinating Board approved changes to how certain outcomes are weighted, some colleges could see shortfalls in fiscal 2027 payments. The article frames the issue as a mismatch between performance success and budget growth, with the coordinating board managing a $1.2 billion appropriation cap until the next legislative session. For institutional leaders, the message is that performance funding still requires stable formula mechanics. When outcome measures improve but caps constrain payments, colleges can face planning risks even as they demonstrate mission effectiveness.