Does per pupil spending include teachers pay?

I hear a lot from the right about how much the US spends per pupil and how that hasn't improved our education system; according to the Heritage Foundation, around $9,000 in 2004-2005.

I immediately asked myself, "What exactly are we paying for? Does that include public services like free lunches? How much of that goes toward teachers pay?"

I then found this post from the New York Times. According to research from the Organization for Economic Cooperation and Development, our teachers work more hours than any other public education institution including countries like Germany, Denmark and Japan.

The kicker is this... apparently they're not being rewarded for it. 

I would like to know where the money is going - particularly if it's not being spent on teachers, who may see their economic inequality as a reason to lack incentive.