The problem of higher education cost has attracted extensive attention from the government and academia. On the basis of fully considering reality restrain condition of shortage of funds and talents, we put forward an optimization model for university running efficiency under limited fund, where we taking quadratic cost function as the objective function and taking Cobb-Douglas production function as the constraint condition for the financial support of colleges and universities. By using Lagrange multiplier function, we have obtained the optimal solution of this optimization model, and bring forth a proposal to improve the efficiency of colleges and universities.