MPS June state financial aid withheld; ousted comptroller speaks out
MILWAUKEE - Milwaukee Public Schools’ June financial aid has officially been temporarily withheld by the state.
The Wisconsin Department of Public Instruction notified MPS on Thursday, June 6, that it is withholding the district’s June Special Education Aid Payment of $16,623,612 amid their ongoing financial fiasco.
This comes after DPI said in a letter at the end of May that MPS was more than eight months late on sending multiple required financial documents to the state.
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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.
DPI letter to MPS
"Our focus remains on solving this challenge and supporting all of Milwaukee's children," DPI said in a statement.
DPI is working with MPS to develop a corrective action plan (CAP) to submit the required data and can give the school district its general aid payment later in the month. The state agency said when they have a CAP in place, they will be able to release the payment to MPS.
Thursday's letter to MPS was addressed to superintendent Keith Posley, who announced his resignation earlier this week.
Posley's resignation includes a $160,000 severance payment. The district will pay him through the end of June.
Ousted MPS comptroller talks ongoing fiasco
Alfredo Balmaseda is MPS’ former comptroller. He said he was fired Tuesday afternoon, June 4, after the district's public financial fiasco, and before Posely's resignation.
"To a district this big, $16 million is like a hair on a cat," Balmaseda said.
MPS comptroller position opens, board answers few questions
The Milwaukee Public School board held its first press conference since the resignation of superintendent Keith Posley on Wednesday, June 5, but very few questions were answered.
Balmaseda said all the administrative staff who deal with financing knew of the issues. He said his ousting was unfair.
"Without any further investigation or any questions asked, I was told that I had been removed from my position," Balmaseda said. "This was a rushed decision that’s probably going to hurt the district more than it should have."
Former MPS comptroller Alfredo Balmaseda
Balmaseda said among MPS’ issues, there were only two auditors who were waiting to certify their numbers for DPI. He also said they were using a complex system that was not compliant with generally accepted accounting principles.
"It takes a long time to go through all the accounting that was done in the whole year and in the closing period, so that’s what delayed us so much," he said.
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He also said adequate training also continues to be an issue with MPS, and he's not sure what the future holds for the district if these issues go unchanged.
Milwaukee Board of School Directors responds
"Today, the Department of Public Instruction (DPI) notified Milwaukee Public Schools (MPS) that the district’s June special education aid payment will be temporarily delayed. MPS and DPI have been in close communication to resolve this issue and the district was aware that this payment would likely be delayed.
Currently, our top priority continues to be ensuring that all key required financial data is submitted to DPI as quickly as possible. The district is finalizing a Corrective Action Plan (CAP) that will specify how MPS plans to complete and submit all past-due financial reports to DPI.
MPS is optimistic that the CAP will allow the district’s general aid payment to be received on time, and that its special education aid payment will also be released at that time.
Our students, families, staff, and community count on MPS to prepare our youth for success in higher education, post-education opportunities, work, and citizenship. This is our mission and our guide as we navigate this complex situation. The District is working closely with our auditors and the Department of Public Instruction to complete all documents and reports necessary as required by law."