Moray College has been left £500,000 out of pocket because of a lopsided funding system which has funnelled the cash into other campuses.
The Elgin-based institution is run by the University of the Highlands and Islands (UHI), which offers lessons at 13 different colleges and research centres from Argyll to Shetland.
Local MSP Richard Lochhead yesterday revealed that the Moray base, which has around 6,000 students, is being deprived of 10% of the money it is owed.
It has emerged that an “unequal” funding formula has split hundreds of thousands of pounds earmarked for the college among other facilities.
During questions at Holyrood, Mr Lochhead pressed Scottish further education chiefs on what was being done to remedy the shortfall.
The SNP politician said: “Moray College has provided evidence that, after UHI has divided the funds among the various colleges, Moray is under funded by about 10%.
“That equates to about £500,000 in its budget.
“It is clear that the college has been under funded recently, and I hope that the formula can be fixed so that does not continue.
“For Moray College to develop new degrees and continue to do its good work, it must have an equitable share of the funding.”
Mr Lochhead added that he understood government experts were now offering UHI bosses “technical support” to review the allocation formula.
Minister for further education, higher education and science, Shirley-Anne Somerville, said talks between Moray College and its parent group were ongoing.
She added: “The distribution of funding for UHI colleges is a matter for UHI.
“I understand that UHI remains in active discussion with Moray College on its funding for future years, and is waiting for further material from the college to move the process forward.
“I am sure that UHI will want an equitable settlement for the colleges across its region.”
Between UHI investment and government grant funding, Moray College received £8.5million between 2014/15 and £8.4million in 2015/16.
Last night, a spokeswoman for UHI said: “We continually work with our academic partners, including Moray College, to ensure an equitable settlement across our region within the envelope of funding available.”
Moray College was not available for comment.
The base was established as Elgin Technical College in 1971 and, after changing its name, it joined UHI in 1997.
