MPS delays budget vote due to financial problems and missed audits

Lina PortmanMay 31, 2024

0 3 minutes read

After state officials publicly raised serious concerns about Milwaukee Public Schools' lack of financial reporting, school board members voted Thursday to postpone a vote on the district's proposed budget for the next school year, which would result in the elimination of nearly 300 positions.

Board members are required under state law to approve a budget by the end of June.

The move comes as MPS faces a suspension of state funding because district officials have failed to submit required audited financial reports to the state Department of Public Instruction, some of which were expected ago is more than eight months old. DPI officials warned the district in a letter Friday that it could withhold state funds for MPS if the reports are not filed promptly.

Board members expressed frustration Thursday at not having more information. Board member Darryl Jackson said he was “in the dark” before the DPI letter.

“I really appreciate DPI keeping us informed of where we are and where we are right now,” Jackson said. “There’s no way we should be in this position and the board doesn’t know it.”

Board members present at the meeting all voted in favor of a motion from board member Marcela Garcia to defer action on the budget. Board members Jilly Gokalgandhi and Megan O'Halloran were absent.

MPS is also in trouble with federal officials, who this month suspended funding for the district's Head Start programs after the district failed to correct problems following incidents of abuse.

MPS plans to call on external financial assistance

Matt Chason, director of the district's Office of Accountability and Efficiency, said Thursday that MPS plans to heed DPI's advice and hire an outside financial professional to help the district complete the missing reports.

Chason said the seriousness of the DPI letter “cannot be overstated.”

“This has shaken public confidence in the oversight of the district’s financial operations,” Chason said. “This is unacceptable. This must be restored so that we have public confidence in the management of public funds.”

Board member Missy Zombor, who echoed Jackson's frustration with the lack of information available to the board, thanked Chason for taking “swift and decisive action” in appealing to an external professional.

“I think the work you're doing is going to help us get some answers,” Zombor said.

In a joint statement Wednesday, board members pledged to ensure MPS submits late reports “in a timely manner.”

While DPI has threatened to withhold special education and general aid funding to MPS if the district does not promptly submit its missing reports, DPI officials have said MPS will be able to get that funding back once the reports are completed.

MPS and DPI officials meet daily. Additionally, a spokesperson for Gov. Tony Evers said Thursday that the governor has been in contact with DPI and MPS officials, urging them to “work together to quickly reach a resolution and avoid further financial consequences.”

Board plans public hearing Monday on district's financial situation

Since Thursday's board meeting did not allow time for public comment, board President Marva Herndon scheduled a public hearing for Monday where members of the public can share their comments on the situation financial district.

The meeting will be held at 5:30 p.m. at the district's central office, 5225 W. Vliet St. Members of the public can register to speak at the meeting in person or online.

It is still unclear why MPS has not submitted financial reports

District administrators did not respond to the Journal Sentinel's questions about why the reports were delayed.

According to DPI, MPS failed to provide an annual financial report with audits for the 2022-23 school year, as well as certified budget data for the 2023-24 school year. The documents were expected in September and December last year.

For the 2021-22 school year, MPS paid Baker Tilly to audit the district's financial statements. MPS has extended its contract with Baker Tilly through June 2024, although the firm has not yet presented the school board with an audit for the 2022-23 school year.

Rob Henken, president of the Wisconsin Policy Forum, said one reason an audit would be significantly late would be if there were serious disagreements between auditors and MPS officials.

Lina Portman

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