MPS behind on financial data, state agency says

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MPS' finance fiasco

Milwaukee Public Schools may be at risk of losing millions of dollars in state aid after the state said the school district is months behind in turning in financial paperwork.

Milwaukee Public Schools may be at risk of losing millions of dollars in state aid after the state said the school district is months behind in turning in financial paperwork.

Every school district in the state may be affected as a result.

The Wisconsin Department of Public Instruction shared a letter with FOX6 News on Wednesday, May 29, addressed to MPS superintendent Keith Posley, saying the school district is more than eight months late on sending multiple required financial documents to the state.

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"Not only are many required reports incredibly late, MPS has demonstrated a pattern of submitting incomplete data, as well as requesting data changes without having the required documentation for the request," the letter from DPI said.

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Per the letter, one of the missing reports from MPS includes its FY23 Annual Report, which was due on Sept. 22, 2023.

Statement from Milwaukee Board of School Directors

The Milwaukee Board of School Directors said they are working to "resolve the situation as quickly as possible" and remain "committed to its obligations to our students, their families, and the people of Milwaukee."

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The state said every school district in Wisconsin may be delayed in receiving state aid as a result, and MPS may have millions withheld. DPI noted that failure to submit the missing data directly impacts its ability to begin work on the June 2024 financial general aid report. The agency said it needs all school districts to submit their data.

Reaction

Wisconsin Department of Public Instruction Executive Director Sachin Chheda 

"The Wisconsin Department of Public Instruction is invested in building a strong partnership with Milwaukee Public Schools to improve outcomes for all learners. 

"Unfortunately, after months of inadequate progress on filing statutorily required fiscal reports, the DPI was forced to inform MPS on Friday that further aid payments are at risk, immediately including both a special education aid payment and a general aid payment in June. The department is requiring a Corrective Active Plan for MPS to move forward, including a clear timeline on when required audits, budget, and other fiscal information can be provided.

"We have been in very regular communication with the MPS superintendent, and the MPS Board of School Directors is also now deeply engaged in a dialogue with the DPI. We believe they are committed to getting the district’s financial reporting back on course.

"Simultaneously, we are working together with MPS, and with other stakeholders, to improve outcomes for Milwaukee’s children, and that will be our priority going forward."