Since the adoption of Proposal A in 1994, the State of Michigan provides most of the money to the school districts (between 85-90%). This State money is used for OPERATING EXPENSES, what most people think of as “school” expenses, such as teacher and employee salaries and benefits, books, all classroom supplies and supplies for all school-related activities. OPERATING EXPENSES also include such things as utilities, maintenance of buildings and the transportation of children. Preschool, food service and child care may fall under this category also. OPERATING EXPENSES are affected by budget shortfalls and any delays in passing the State’s budget.
Expenses that a district can raise money for are CAPITAL EXPENSES such as construction for new buildings, sports fields and any non-instructional tangible item (technological devices). Districts raise these funds with millages, sinking funds or fundraisers through organizations such as the Foundation or the PTSA.
