MPS finance report problems; superintendent denies interview requests

Milwaukee Public Schools is considering budget cuts as it faces new scrutiny over months-late financial reports to the state.

A lot happened for the school district this week, but it all centers on financial woes. It led to a volatile school board meeting on Thursday night, during which some people were escorted out as members tabled a $1.5 billion budget proposal that could cut hundreds of positions. 

"The elephant is in the room," said MPS School Board Director Henry Leonard.

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That elephant: A scathing letter from the Wisconisn Department of Public Instruction that stated MPS has not submitted required financial data to the state, with some reports more than eight months past due.

"Milwaukee Public Schools has missed four critical reports since September," said Sacchin Chheda, DPI executive director.

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MPS finance report problem could impact all state school districts

Milwaukee Public Schools is months behind on submitting multiple required financial reports to the state, the Wisconsin DPI announced Wednesday.

The delays could cost MPS millions of dollars and impact how funds are allocated to other school districts across Wisconsin.

"There’s only a certain amount of money to go around, so there’s a formula that dictates how it’s calculated," said Kevin Rich, Marquette University accounting department chair. "If the state isn’t getting that number, it's having consequences for everybody."

FOX6 asked Jilly Gokalgandhi, MPS School Board vice president, how this happened.

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"The board was notified on Friday (May 24), and when the board was notified, we took immediate action," she said. "The board has stepped in. We are looking to rectify the situation, and we are moving quickly to do so."

Gokalgandhi said the "immediate action" was getting the proper financial experts on staff and working with DPI. FOX6 asked her to clarify, on the record, if and when the school board knew how this was allowed to happen. She declined.

Multiple requests to interview MPS Superintendent Keith Posley have been denied or gone unanswered. He did not speak during Thursday night's board meeting.

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May 31 reaction

Ald. Lamont Westmoreland

"I am disgusted and embarrassed by the ongoing failures within Milwaukee Public Schools (MPS). For far too long, the glaring shortcomings of MPS have mirrored the catastrophic collapse in the movie Titanic. While some societal issues may be uncontrollable within the classroom, MPS holds the power to shape the present and future of Milwaukee, and they must excel in every area they can control. There is absolutely no room for error. This is not a slight against the dedicated and amazing staff they have; it is a condemnation of the system’s structure and certain key decision-makers within the system.

"Throughout my campaign over the past two years, I've spoken with thousands of parents. The majority are desperately taking every measure to not send their children to an MPS school. Despite being an elected official, I remain powerless, with no influence or decision-making authority within MPS. I am looking to change that and am exploring options at the City and State level – to give local and/or state level government oversight over the district and a voice – which in my opinion is clearly needed.

"As I have done for the past year, I will continue to engage with other school districts nationwide that operate differently from MPS. Change is imperative. Other school districts have changed the way that they’ve been structured and operated, and so can MPS.

"I believe change at MPS is imperative to prevent a fate as disastrous as the Titanic’s."

State Sen. Rob Hutton (R-Brookfield)

"The public outcry regarding the recent obvious and significant failures of the Milwaukee Public Schools is the latest example of systemic failure. A few short weeks ago, the district asked for and received hundreds of millions of dollars from Milwaukee taxpayers. It claimed those funds were essential for continued operation, yet now we learn that there is obvious and significant mismanagement in the most basic functions of the district.  

"The Board and Superintendent should be held accountable for the misuse of taxpayer funds and must be responsive to the residents who are now paying those taxes. It is time for the board to engage an outside firm with appropriate expertise to conduct an audit of the district's finances, operations, and compliance practices. Upon its completion the full audit report should be made public.  

"Tens of thousands of parents put their trust in MPS to equip their children with a great education. The failures of Milwaukee’s schools cannot continue. I call on Governor Evers to join me in demanding a full external audit of the financial and management practices at MPS. Milwaukee families deserve better."