MPS again missing financial reporting deadlines, funding at risk

Yahoo

20-05-2025

The Brief
Milwaukee Public Schools is once again at risk of losing funding.
MPS is again missing financial reporting deadlines.
Without those reports, DPI says school districts everywhere else in the state can't budget for next year.
MILWAUKEE - The money mess at Milwaukee Public Schools means the district risks losing state funds, again.
And this problem could impact you, wherever you live in Wisconsin.
We're talking about your tax dollars.
This isn't just a paperwork issue, the state needs certain reports from your school district to check its work and make sure your local leaders are using your money correctly.
The district has beefed up staff, but is once again missing deadlines.
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What we know
Milwaukee Public Schools risk losing state money, because the state says MPS is late again turning in financial reports.
Without those reports, the state says school districts everywhere else can't budget for next year.
"People can think of it like their tax refund, basically aids given out, sort of as an estimate, and we need the final numbers to make sure that everyone's getting the exact amount of money that they deserve," said Quinton Klabon from the Institute for Reforming Government. "So that not just Milwaukee Public Schools kids are getting the money that they deserve, but that kids around the state are getting the money they deserve."
FOX6 asked for interviews with MPS and DPI, neither were willing to go on camera on Monday, May 19.
But back in March, MPS Superintendent Brenda Cassellius told FOX6 this:
"Deadlines are extremely important to me, but I also understand there is a history here and so are continuing to make sure we are addressing some of the shortfalls and making sure we put in place new processes and controls, so we can make sure we are meeting those deadlines. My promise is to always be honest with the community and our public and tell transparently, if we missed it, why we missed it, and so hopefully we wont I want to try to make all deadlines, but sometimes we're still working to make sure we have proper staffing and proper processes and procedures in place in order to make all of those deadlines."
The backstory
If you're wondering how we got here, in May 2024, the state publicly revealed MPS hadn't turned in its 2023 financial reports.
Those are now done. But today, a year later, the fiscal year 2024 reports are also late.
The 2024 annual report was originally due this past September. Then in January, the state and MPS agreed it'd be expected in March.
Now in May, the state warns it's still waiting and set a due date of Friday, May 16.
MPS missed that deadline, too.
"It's like, if you have a final paper that's only maybe a week late, but you haven't turned in your draft that was due in March. That's what's really concerning, is that the stuff before the final report hasn't been turned in, and that's two months late at this point," added Quinton.
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Then, there's the fiscal year 2024 audit, originally due in December, but still not turned in now.
What's next
The state says it needs it by May 30.
The state gave Milwaukee two dates in May to have paperwork turned in.
It missed the Friday deadline, which means the state will send a notice that it's withholding aid.
It will do the same if a May 30 deadline is also missed.
So how much money could the state hold back? FOX6 will let you know as soon as they provide the info.
What they're saying
"Without timely and valid reporting, the DPI cannot affirm for Wisconsin's school districts the revenue necessary to budget for the upcoming school year."
"In lieu of an interview, please find the statement below, attributed to me if necessary. On the aid withholding, we are still working through details on what that looks like and will provide more information when it becomes available.
"We continue to put significant resources toward helping MPS meet these important financial reporting deadlines. While we've worked hard to support them, it's ultimately the district's responsibility to fix the ongoing issues and submit the required information.
"Meeting these deadlines is not just about accountability – it is also critical for making sure the final aid calculation is as accurate as possible. That information helps school districts across the state plan their budgets for the upcoming school year."
"The MPS finance team is working with urgency to meet the May 30 deadline. We are grateful for the partnership and support of the Department of Public Instruction as we work to deliver accurate and complete data. As we address past gaps in our financial reporting systems, this effort demands an all-hands-on-deck approach, which our finance team is providing."
"Milwaukee Public Schools is committed to providing DPI with accurate and complete financial data. While we have communicated to DPI that we continue to upload data to them, we will not complete everything by today's initial deadline. Our priority is getting this done right and with the urgency it requires. The data set is large and complex, and our team is working to clean up historical records to ensure accuracy. Superintendent Cassellius has made clear to her team that the priority is to deliver the final audited information with transparency and integrity. We will continue to communicate with DPI regularly on our progress."
The Source
FOX6 has done previous reporting on MPS missing reporting deadlines. New information was provided in a letter from the Wisconsin Department of Public Instruction (DPI).