State officials approve action plan for MPS but require more progress
Milwaukee Public Schools is on its way to regaining suspended state aid, as state officials have approved a plan for the district to complete overdue financial reports and address serious flaws in the district's accounting practices.
The district's corrective action plan was also approved by the Milwaukee School Board Thursday night.
The state Department of Public Instruction withheld a $16.6 million payment from the district this month because MPS has yet to complete a financial audit that was due at the end of last year. The department had planned to withhold another payment June 17 if the district did not have an approved plan.
With the approved plan, state officials will make that June 17 payment, according to a letter sent to MPS on Thursday. The release of the $16.6 million payment and future payments, however, depends on the district "making adequate and sufficient progress towards implementation" of the plan.
Separately, due to errors in the district's financial reporting, MPS stands to be docked about $35 million to $50 million in state aid for the next school year, according to preliminary estimates that could change. That aid reduction cannot be recouped.
State Superintendent Jill Underly said in a statement Thursday that she was confident the school board would approve the plan as a "first step" in strengthening its schools.
“I remain committed to always doing what is best for the kids of Milwaukee and all of Wisconsin. I know leadership in Milwaukee and people across the state share this commitment; Milwaukee school leadership needs to live up to this expectation as well," Underly said in a statement.
Three top officials have departed MPS since the accounting problems came to light: Superintendent Keith Posley, Chief Financial Officer Martha Kreitzman and Comptroller Alfredo Balmaseda. A new coalition is seeking to recall four school board members.
Additionally, Gov. Tony Evers is hiring auditors to take a close look at MPS operations and academic practices.
The district's corrective action plan approved Thursday included some revisions by DPI after MPS submitted a draft plan Tuesday. That draft plan illustrated how staff vacancies and turnover in the district's finance office, combined with a lack of training on key software, caused confusion and errors. It also identified solutions, including replacing the district's CFO, hiring a dozen finance staff and reinstating a chief auditing executive.
Matthew Chason, senior director of the district's Office of Accountability and Efficiency, told board members Thursday that he felt the changes to the draft by DPI were "well advised."
Among the revisions DPI made to the plan: MPS will be required to create a second action plan to meet future "financial filing and data integrity requirements." That plan would outline how the district will make sure it submits future reports on time and with accuracy. A draft of the plan is due July 8.
Contact Rory Linnane at [email protected]. Follow her on X (Twitter) at @RoryLinnane.
This article originally appeared on Milwaukee Journal Sentinel: State officials approve action plan for MPS but require more progress
