Michigan school districts are fighting mounting deficits hard, with 48 currently under monthly monitoring by the state's Department of Education.

The number has risen sharply in recent years, according to The Detroit News, after hitting a low of 10 districts in 2003. Officials cite rising benefit costs and cuts in state aid which have both increased obligations and reduced the ability to meet them. The size of the deficits varies, with figures lower than one percent of the budget for some localities and higher than 40 percent in others.

Wayne County school district superintendent Sue Carnell told the news source the district was overspending by $3 million annually prior to her arrival, saying that cooperation between officials and employees has since made it possible to shrink the deficit.

Muskegon Heights interim superintendent David Sipka noted that school districts spend the majority of their budgets on retirement, benefits, salaries and other expenses relating to employees. These expenses rise over time, making it difficult to avoid decreasing deficits without cutting spending on teachers and other public employees.

Changing approaches to healthcare spending by using health reimbursement agreements and other alternate methods of structuring benefits may help lower costs without harming teachers.