More than two years ago, the Coordinating Board directed its University Formula Advisory Committee to renew efforts to conduct a cost study to validate the relative weights contained in the matrix. This report provides a summary of the results of the study. The methodology was developed and presented to the Texas Higher Education Coordinating Board at its April 2004 quarterly meeting, where it was unanimously adopted. The methodology was then presented to the Governor's Office, the Legislative Budget Board, and various legislative committees in June 2004. Since then, the Coordinating Board staff has collected and analyzed data to provide an "all funds" analysis of Texas public university costs. All costs have been tied to data in each institution's Annual Financial Report. Naturally, this analysis revalues the relative weights, which in turn reallocates the Instruction and Operations formula funding among the universities. Appended are: (1) FY 2002 and FY 2003 Sum of All Costs at Public Universities and Sum of All Semester Credit Hours (SCHs) at Public Universities; (2) Percentage Change Between the Current Matrix and the Phase-In Matrix; (3) Calculated Weights and Calculation of Relative Weights; (4) FY 2002 and 2003 No Phase-In Distribution of Formula Funding; and (5) FY 2002 and 2003 Phase-In Distribution of Formula Funding, One-Half the Difference with Losses Limited to 3 percent.