Michigan gave schools $224M for infrastructure, but they need billions

Michigan lawmakers commissioned a study in 2023 that found the state’s public schools need about $22.8 billion in infrastructure money
Michigan Department of Education recently awarded $224 million in grants, and there will be another $100 million in infrastructure grants that are part of the state’s 2027 fiscal year budget
Many districts that missed out on grant money will ask voters to approve bonds during the November election

In July, Michigan awarded 31 school districts a total of $224 million to fix aging boilers, air conditioning, electrical systems and a building’s leaky roof.

For one district, the money represents “a major game changer” that allows it to address needed infrastructure repairs without asking voters to raise their taxes with a bond on the November ballot, an increasingly difficult route for schools.

However, the $224 million is just 16.5% of what districts across the state had requested, and that $1.8 billion ask, the Michigan Department of Education said in its news release, falls short of the estimated $23 billion in repairs that Michigan public schools need.

The gap between need and available funding has a lot to do with how Michigan schools typically get infrastructure money. Michigan is one of eight states where the primary funding source for school infrastructure is bonds, according to the Education Commission of the States, a national organization funded by states that tracks legislation and policy changes.

Across the country, states are the largest funder of a K-12 district’s overall operations, said Chris Duncombe, a senior analyst with the organization. But “looking at capital school construction projects, that’s a different story,” he said.

“Eighty percent of funds come from the local level, with states doing 17% and the federal government 3%. So the states play an important role, but a much smaller role than what they do on overall operational support for schools. A caveat being that there’s wide state-to-state variation.”

In Michigan, the state’s portion has been almost nothing, according to the 21st Century School Fund, a nonprofit that focuses on modernizing public schools. From the 2014 through 2023 fiscal years, the organization found that Michigan districts paid 98% of their infrastructure costs, with the remaining 2% coming from the federal government.

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In the Midwest, Michigan is joined by Indiana and Wisconsin as states that provided no funding over that time. By contrast, Iowa provided 29% of school infrastructure money, which is higher than the national average, and Ohio provided schools with 16% of funding, the group found.

There are signs this is changing in Michigan.

In 2022, lawmakers funded a statewide school facility study. The subsequent report, released in 2025, assessed conditions in 2,534 school buildings and found that Michigan public school districts needed to spend an estimated $22.8 billion by 2033 to bring their buildings up to “a common standard of health, safety, and wellness.”

A man stands in a room at a school that's missing ceilling tiles and has water stains on ceiling. — The Eastpointe Early Learning Center needs a full roof replacement due to ongoing leaks, says Ron Smith, district operations coordinator. For now, staff patch it as needed. (Brayan Gutierrez for Bridge Michigan)

In July, the state awarded the $224 million to districts. There will be an additional $100 million in grant money in the 2027 fiscal year budget, MDE spokesperson Bob Wheaton told Bridge Michigan.

“The Michigan Department of Education has advocated for and will continue to advocate with our partners in the Legislature for more infrastructure funding so that students and educators have the school facilities they need for students to learn,” he wrote in an email.

‘This is like winning the lottery’

Owendale-Gagetown Area Schools in Huron County was among the lucky districts to receive state grant money. The district got about $6.6 million, with $1.1 million for roof repairs, $1 million for electrical work and about $1.5 million dedicated for plumbing and HVAC.

Not only will the funds allow for short-term fixes, the district hopes the repairs will also result in long-term cost savings. Plumbing issues have increased the district’s water bills. The old boilers in the HVAC system have increased the gas bill at a time when energy prices are also increasing.

“It’s huge. It’s just a huge relief,” Superintendent Nick Huston said of the grant. “This is a major game changer for our district. … This is like winning the lottery.”

About $193 million of the $224 million that MDE awarded will be used on roofs or heating, ventilation and air conditioning systems, according to data provided by the state. Electrical repairs came to $11.1 million.

Eastpointe Community Schools near Detroit asked the state for about $11 million for repairs to roofs, HVAC systems and electrical work. All the stuff that isn’t exciting but is incredibly important, said Jon Dean, the assistant superintendent of business and operations.

The district thought it had a good chance given its high rate of low income students and the fact that the high school is nearly 100 years old, Dean said, adding that school officials were “surprised and disappointed” when it missed out.

“It’s just not fair,” he said of the grant process and overall infrastructure funding. “It’s just not equitable and it’s not right.”

construction equipment stacked on the walls of a school hallway. — A hallway at Eastpointe High School staged for construction as the district installs new boilers this year, replacing units that dated back to 1997. (Brayan Gutierrez for Bridge Michigan)

‘We’re talking about it all the time’

Eastpointe schools has sought infrastructure money from individual private donors and from large organizations, Dean said. School officials have talked with lawmakers in Lansing and Washington, D.C., and will once again go back to voters in November and ask for another bond.

One fix, Dean suggested, is for the state to stop using the School Aid fund for higher education costs, which would free up additional money for K-12 schools.

The education budget that Gov. Gretchen Whitmer signed in July is for $22.9 billion and includes a record $1.7 billion of School Aid money to be spent on higher education instead of exclusively on K-12 efforts. School districts will receive $10,300 per pupil, which is a 2.5% increase from the $10,050 they received last school year.

Duncombe, the analyst with the Education Commission of the States, said some states have set up ongoing revenue sources specifically for school infrastructure costs. Massachusetts puts 1% of its sales tax revenue into a School Modernization and Reconstruction Trust Fund, he said, and Wyoming uses tax revenue from oil, gas and coal extraction operations.

“When things are going well and state revenues are going well, that’s where you see the large infusions of state investments to support capital needs,” Duncombe said. “When that drops off, that’s usually the first thing that gets cut because they don’t want layoffs in schools. There’s certain operational needs that you can’t postpone.”

Despite missing out on $11 million in state money, Dean said Eastpointe is “fortunate” because voters there have previously approved a bond and a sinking fund, which is a pay-as-you-go fund that can also be used for school security and technology purposes.

“We’re talking about it all the time,” he said of the difficulty with infrastructure funding. “We have to provide support for our kids and do what’s best for them.”

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