The aggregate fund balances for Michigan K12 school districts have likely never been higher than levels reached following the 2020-21 school year. COVID relief that doubled federal funding for Michigan schools from 2019-20 to 2020-21 particularly spiked aggregate levels. The implication is that most districts could not identify investment options as rapidly as the relief flowed.
Federal funding has not been the only factor in rising cash and asset levels for Michigan schools. As the state continues its push for per pupil equity, smaller districts has seen disproportionate growth in their financial health.
The chart below demonstrates this and shows the average percentage of district general fund revenue over expense for the 2020-21 school year. The chart further breaks down the view by district size. For example, class D districts have enrollment between 5,000 and 10,000 students. Class B are the largest and Class K the smallest in the state.
