MPS Could Lose $81 Million in State Aid
Half of estimated loss due to state adjustment for school district's financial errors.
Milwaukee Public Schools Office of School Administration, 5225 W. Vliet St. Photo courtesy of Milwaukee Public Schools.
Milwaukee Public Schools will receive about $81 million less in state general school aid in 2024-25 according to estimated data released Monday by the Department of Public Instruction.
The decrease in state funding is the latest blow to the embattled school district that has faced financial scandal since it was revealed by DPI that financial documents were missing for months.
About half of the $81 million that MPS will not receive – $42.6 million – reflects an adjustment from DPI due to district reporting errors in the 2022-23 school year.
During the 2023-24 school year, MPS received $636.4 million in state aid. DPI estimates show the district will receive $555.3 million during the 2024-25 school year, a 12.75 percent decrease.
Last month, the Milwaukee Board of School Directors approved a proposed $1.5 billion budget.
In that budget, the district estimated it would receive $595.3 million in state aid – DPI’s estimate released today is $40 million less.
All together, the district’s budget included a $124.6 million dollar increase in combined property taxes and general aid for the 2024-25 school year.
The budget can be adjusted once final general aid calculations are released by DPI in October. The district also narrowly passed a $252 million referendum in the spring attempting to offset a $200 million deficit.
Todd Gray, MPS’ acting Chief Financial Officer, said it is important to understand all of the numbers released Monday are still estimates.
“In the meantime, MPS will use this information to evaluate strategies to make adjustments that will be reflected in the amended adopted budget,” Gray said in a statement.
Losing $81,132,210 in general aid will now force the state’s largest school district to make tough decisions.
“Our goal is to maintain services to students and to do exactly what we told taxpayers we would do when the referendum passed in the spring, which is to maintain art, music library and gym, and to invest in academic success,” school board president Marva Herndon said in a statement.
State aid is the largest form of state support for Wisconsin public schools
DPI calculates general school aids through a formula that uses property values in the district, enrollment and district spending.
The current estimates are based on the 2023-25 biennial budget and pupil count and budget data reported by school districts to the DPI.
Due to previously reported delays in financial data reporting by Milwaukee Public Schools, the DPI anticipates greater than usual volatility in these estimates.
“Figures used in this estimate may change by a greater than usual amount for the certification of general school aids,” according to a DPI press release. “The department therefore encourages caution when utilizing this estimate.”
Statewide, estimated general school aids for 2024-25 total $5.58 billion, a 4.2 percent increase from 2023-24.
Payments to districts will increase an estimated $234.3 million because of two factors: an increase of $224.9 million per the state budget as passed by the Wisconsin State Legislature; and the decrease in the required Milwaukee Public Schools funding for the Milwaukee Parental Choice Program due to statutory changes, according to DPI.
Of the state’s 421 school districts, 289 districts are currently estimated to receive more general aid, while 124 districts are estimated to receive less — with 64 districts receiving the maximum decrease of 15 percent. Eight districts will have no change.
Madison Metropolitan Area School District will see an estimated 36 percent increase in state aid.
Racine Unified School District, which had the largest decrease in general aid last year, will get an estimated 14 percent increase.
Milwaukee Schools poised to lose $81M in state aid was originally published by Wisconsin Public Radio.
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Please put a hold on the referendum dollars going to MPS until such time that they resolve all of their challenges–financially and academically. Why are we putting more money into a failed system, a poorly functioning board of directors, and one that continues to make the changes we have been seeking for over 50 years. I am a product of public schools and MPS but if I had a choice, I would send children to a charter school any day. Strong accountability practices and operating on less revenue with qualified educators.
Let’s seriously consider breaking up this system. We started the conversation years ago under Mayor Barrett with the assistance of Demond Means. I was a part of that team. We should have followed through.
Who are the best groups and individuals that are fighting to help MPS? I would like to support those groups and individuals.
Tax dollars diverted to voucher schools are destroying public schools. That is something that thrills the right wing activists intent on having school children subjected to religious indoctrination at taxpayer expense.
White Christian Nationalism is right around the corner if Trump is elected (as recent events in Tennessee foreshadow). A lot of victims here….. our constitutional republic foremost among them.
The term voucher schools can be confusing for people. Choice schools are schools that do incorporate religion and operate differently than public schools. Charter schools are public schools and operate under the same academic standards as traditional public schools. One of the reasons these two options developed was because of the failures of our current school system–primarily MPS. One of benefits of charter schools (initially focused on low-income families) is they operate with less revenue per pupil than MPS for example–and also serve special needs children without the extra revenue such as what MPS typically receives. Yes–before you say that does not happen–I know better as I worked in charter schools for decades–all with teachers providing services for special needs children who were doing well. In spite of all of the revenue MPS receives, it has still mismanaged its budget, has continued to fail our children academically, and operates at a much higher financial level with a poor outcome. We need a change. I think breaking up the system should be under consideration. We have been suffering through this for years. PS– I am a Democrat.
The ultimate injustice. Because a bureaucrat does not know what he/she is doing will cost the tax payers of Milwaukee 81 Million dollars and therefore the children of MPS the loss of many extra teachers etc is beyond evil. If it takes a special legislation then so be it. It will expose the Republicans for who and what they are if they do not allow the money due MPS to flow to MPS!! How the State formula works is not easy to understand to say the least. Even the “new” money approved by the referendum does not flow until ???
MPS will never lose that money. Someone will just say “but its for the children” and continue to give till it hurts…the taxpayers. These people in charge of MPS knew that they had faked the records…and do not seem to want to explain it. let alone say who, what, where and when they knew it.
The MPS board needs to be recalled and reconfigured to a new system of governance.