The state financial report reflects expenses for building construction in three line items: education expenses (not including component units), capital outlay (generally state buildings), and transfers to component units.

Colleges that are controlled by the State of Michigan are "component units." Examples of component units are Central Michigan University, Ferris State University and Grand Valley State University. Expenditures for construction projects as component units are classified as operating transfers rather than direct expenditures as is otherwise the case.

All community colleges are controlled by a local unit of government. Additionally, some universities are controlled by "boards of governors" which are elected by statewide ballot and are therefore not under state control. These universities are not component units. Examples include Michigan State University, Wayne State University, and The University of Michigan.