A £15m fund is being set up to help Scotland's colleges adapt for the future. Colleges can also top up the fund from their own reserves to pay for reforms - like possible mergers - to improve efficiency.
Funding for colleges in the SNP Scottish government budget was cut by £74m, from £545m this year, to £471m in 2014-15.
Colleges say reductions could amount to a 20% cut.
Scottish Conservative Education Spokesperson, Liz Smith MSP said:
"This announcement is little more than a sticking plaster over the gaping wound inflicted by the SNP on Scotland's colleges. It also confirms their plans to see colleges forced into shotgun marriages.
"If the new Youth Minister is worth her salt then the first thing she will do is demand that the SNP reverse their draconian cuts to college funding. Scotland's colleges are among the best in Britain at equipping our youth with the necessary skills to succeed in the world of work and we must support them.
"Instead the SNP are imposing massive real terms cuts on our colleges at a time when they are most needed.
"With over 100,000 young people in Scotland being unemployed we need to do everything we can to equip them with the skills the jobs market is looking for, and our colleges are vital in helping to achieve this."
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