Milwaukee Public Schools is planning budget cuts after an audit found the district overspent its budget last school year by $46 million.
The main drivers of that spending were transportation and food costs — areas that directly touch students’ lives. Leaders also pointed to inflation and stagnant funding from the state as sources of the deficit.
After the audit's findings, MPS Superintendent Dr. Brenda Cassellius said she'll need to start making cuts and planning for next year’s budget early.
She is beginning a mid-school year hiring freeze of all non-essential positions, which she defines as non-classroom and non-student-facing jobs. Cassellius is promising to consider cuts to LTEs, or limited term employee jobs, too. LTEs fill roles while staff are on leave or while recruitment is taking place to fill positions.
“As a district we cannot and will not shy away from the tough decisions this reality represents. We will review contracts, we will review LTEs, and make cuts in our central service staffing, including in my administration," Cassellius said at a school board meeting on Feb. 10.
"We will act this year and next so we directly and meaningfully address this gap while continuing to keep our students and classrooms a priority," she added. "But we all must feel this pain together.”
City leaders criticize Milwaukee Public Schools overspending
Some city leaders are pushing back on the district’s spending, and they’re in a unique position to do that, because the district's operating budget includes city funds. The city treasurer oversees the district budget along with many others.
Alderman Peter Burgelis announced last week that Milwaukee's Common Council approved his measure to create an “early warning system” for city departments or entities that overspend their budgets.
The resolution requires advanced notice to the city when any deficit or surplus is projected to exceed $100,000 or 5% of an entity’s budget. For context, MPS overspent its $1.54 billion budget by 2.9%
It's been an expensive couple of years for MPS.
The district spent at least $43 million removing lead-based paint in 100 campuses after a child tested positive for lead contamination at their school.
Although that nearly matches the district’s overspending, the lead paint project spanned two school years and was paid for from a different fund, according to Mike Turza, the interim chief operating officer at MPS. He has been at the helm of the lead remediation project.
"We have a construction fund. It's not part of our general operating fund. It's a separate fund that is used for construction, deferred maintenance," he said. "That was the fund that we tapped to do the lead remediation.
"There was about close to $100 million in that fund. And so we've used almost 45% of it," Turza said in December.
Should Milwaukee Public Schools sue lead paint companies for toxic paint used in schools?
Last week, the MPS board met behind closed doors to discuss possible litigation against lead paint companies. While early budget proposals include plans to close the budget shortfall over the next two years, a settlement could help the district's overall financial picture.
In 2019, San Francisco and nine other county, city and town governments reached a $305 million settlement with lead paint manufacturers, which they used to reimburse government agencies that remediated the toxic paint.
Milwaukee’s school board hasn’t announced any action on a lawsuit. But Burgelis, of the Common Council, also took aim at that possibility.
He says it’s “troubling that MPS leadership is discussing speculative lead paint litigation while demonstrating an inability to live within its own budget.”
Milwaukee teachers and school staff alarmed over district finances
Meanwhile, educators and school staff are once again concerned by the district’s financial position, especially after Milwaukee voters agreed to raise taxes in 2024 to raise $252 million for the school district.
Cassellius has previously signaled that the district may not be able to give full cost-of-living increases to school staff next year. More recent budget presentations appear to include 2.63% cost-of-living increases, subject to bargaining with the unions representing staff.
Will Fitzgerald is a special education teacher at Douglas Middle School. He addressed the board last week.
"You say this budget is a reflection of your values. So where does total non-transparency about financial mismanagement factor into your values?" he asked.
"Trying to correct for this now by attempting to slip an austerity budget under the radar of some of the most hardworking teachers and staff that I’ve ever met in my life should have no place in the Milwaukee Public Schools or anywhere else,” he said.
Cassellius plans to finalize her budget proposal by May 4.
There will be a public hearing on May 12 and the board of directors must approve the budget on May 28.
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