MPS Is Again Behind on Financial Reports, Could Lose State Funding
School district missed first deadline to submit 2024 financial data to state DPI.
Charles Edward Miller (CC-BY-SA)
Milwaukee Public Schools could again lose state aid for not submitting financial data on time.
It has been one year since the state Department of Public Instruction notified the district it could lose millions in state funding after it missed reporting deadlines. The ensuing scandal over financial mismanagement led to the state withholding more than $16 million in aid to the district and the resignation of Superintendent Keith Posley.
Now, DPI says MPS has not met deadlines related to submitting 2024 financial data.
Those deadlines were set by a 29-page corrective action plan developed after last year’s scandal.
In a May 5 letter to the district, Deputy Superintendent Tom McCarthy said there are “explicit consequences” for failure to meet deadlines related to the 2024 fiscal year audits.
The first deadline was May 16. MPS did not meet it.
The second deadline is May 30.
McCarthy said if either deadline is not met, DPI will issue a notice to withhold aid.
“We appreciate the time and energy you and your team have put into the work to get the financial systems in better shape at MPS,” McCarthy wrote. “We are optimistic that the hard deadlines detailed above are attainable and realistic for MPS.”
As of Monday morning, DPI had not taken action on the missed May 16 deadline. Spokesperson Chris Bucher said there would be more information on next steps released later this week.
MPS declined to make anyone available for comment Monday.
In a statement, the district said Milwaukee Public Schools is committed to providing DPI with “accurate and complete financial data.”
The statement went on to say:
“Our priority is getting this done right and with the urgency it requires. The data set is large and complex, and our team is working to clean up historical records to ensure accuracy. Superintendent (Brenda) Cassellius has made clear to her team that the priority is to deliver the final audited information with transparency and integrity. We will continue to communicate with DPI regularly on our progress.”
Last year, DPI withheld a $16.6 million payment to the district over the financial reporting issues.
The situation led Gov. Tony Evers to call for two outside audits of the district.
The operational audit, released in February, found MPS was not adequately supporting student success.
The damning 41-page report outlined a number of internal and external factors at the district that have caused multiple failures, including an “absence of clear vision” and “leadership routinely disempowered to lead.”
An instructional audit is expected in the next few weeks.
Milwaukee Public Schools again at risk of losing state funding for failing to file financial reports was originally published by Wisconsin Public Radio.
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