Milwaukee Public Schools submits missing financial information to state

Milwaukee Public Schools has submitted missing financial data and a corrective action plan to the Department of Public Instruction, which could mean the district won't lose millions of dollars in state funding.

MPS Board President Marva Herndon told reporters Wednesday that the district was waiting for DPI to review the documents.

“Next week we will meet with our auditors to determine the next steps in certifying the district’s annual audit,” Herndon said. “While this work is completed, the district is ensuring that these issues do not occur again.”

DPI spokesperson Chris Bucher confirmed the documents had been submitted.

“The department has received additional budget data from MPS and we are reviewing that information,” Bucher said. “MPS has also provided an initial submission of content related to a corrective action plan, and we are working with them to finalize a corrective action plan. I do not have a specific timeline for this approval at this time.

In late May, DPI released a letter showing that MPS had failed to provide “key financial data” despite numerous meetings with the state.

In his letter to the district, the DPI said that until he receives the required financial reports, some of which are more than eight months late, he may withhold this month's special education payment at MPS. As of June last year, that payment was $15.7 million.

MPS's delay in sending documents is preventing DPI officials from calculating aid estimates for other public school districts in 2024-25.

To avoid financial cuts, the state needs information from MPS by July 1 and a corrective action plan that must then be approved by DPI.

“People wonder why and how we experienced these problems,” Herndon said. “I can tell you that we are investigating and will provide updates as soon as we can. The district will expedite this project to ensure these challenges are fully addressed. Until then, we will continue to meet with all our stakeholders.

As news of the financial missteps came to light in recent weeks, there was an outcry from the community, leading to the resignation early Tuesday morning of Superintendent Keith Posley.

The MPS controller position has been vacant since Monday, although the district would not say whether former controller Alfredo Balmaseda was fired or resigned.

MPS this week hired a financial consultant, Todd Gray, who recently helped the Glendale-River Hills school district.

The former Waukesha School District superintendent will receive up to $48,000, according to the district. Hiring a financial consultant was recommended by the DPI.

A national search will take place for a new MPS superintendent

Board Vice President Jilly Gokalgandhi said the board will consider possible candidates for interim superintendent during a closed-door meeting next week. The list of possible candidates will be shared publicly at that time.

Once that person is named, a national search will be launched to find a permanent superintendent, Gokalgandhi said.

Meanwhile, MPS Regional Superintendent for the Southwest Region, Eduardo Galvan, will direct daily operations.

Next week, the board will also consider the 2024-25 budget, which was delayed while the debacle with DPI was handled.

Outcry over administrative errors has led elected officials and community members to call on lawmakers to delay implementation of a $252 million tax increase narrowly approved by voters in the referendum. 'april. Gokalgandhi said Wednesday the district still needs money.