From 2020 to 2022, Michigan public schools spent $86 billion in total, including their Covid relief funds. Graphic 1 shows that, from year to year, school districts spent the most money on employee salaries, benefits and “other expenditures,” which includes “dues and fees, interest on debt, claims and judgements, miscellaneous, and “other financing and debt.” Employee compensation — including salaries and benefits — consumed half of all spending.
The main catalyst for increased statewide spending — despite a 4.3% enrollment decline since the 2018-19 school year — was the enormous amount of federal Covid aid doled out over this period.[14] Of the $86 billion spent by Michigan public schools, $2.58 billion came from revenue related to pandemic relief.
Graphic 1: Total public school spending, 2019-2022
Source: Michigan Center for Educational Performance and Information.
Note: This graph excludes expenditures for repairs and maintenance, rentals, internal use, taxes, and discounts on food service, which range from $2.8 million to $1 billion across all three years. See Appendix B for the corresponding table.
The graphic also shows an increase in spending over these three years. Michigan schools spent progressively more money in every category except on “other expenditures.” Between 2019-20 and 2021-22, spending increased overall by 11%, or $2.99 billion. While employee salaries and benefits, at $1.35 billion, represent the largest dollar value increase, spending on compensation increased by 9%, slightly less than the overall average.
Spending in other categories grew faster, such as capital outlay and supplies, which grew by 37% and 34%, respectively. Over these three school years, purchased services and repairs and maintenance expenditures also increased more than employee compensation, jumping up by about 16% in each category. This broad view suggests that Michigan schools, on average, used their Covid relief funds to hire more employees, increase compensation, purchase more supplies and services from third parties, and make building improvements.