Despite receiving more than $1 billion in taxpayer dollars, Milwaukee Public Schools has busted its budget…again.
Milwaukee Public Schools (MPS) has once again demonstrated why throwing more money at a failing system rarely fixes it. A new audit revealed Monday that the district overspent its 2024-25 budget by a staggering $46 million, plunging its main operations fund deep into the red and forcing administrators to scramble for mid-year cuts just to avoid total fiscal collapse.
Auditors uncovered the issue following a series of financial reviews prompted by a 2024 reporting scandal that had already raised concerns about the district’s accounting practices and delayed state-required submissions.
In addition, MPS passed a $252 million referendum just two years ago and received more than $770 million in federal ESSER grants during the COVID-19 pandemic.
District officials, including Superintendent Brenda Cassellius, attribute part of the challenge to inflation and state funding that has not kept pace with rising operational costs. They note that additional revenue from voter-approved referenda and prior federal COVID relief has helped mitigate worse outcomes, though enrollment declines have continued to pressure per-pupil spending.
It’s been many, many years.”
MPS Superintendent Brenda Cassellius on how long the district has been overspending
Troublingly, though, Cassellius seems unsure of when the overspending began.
“It’s been many, many years,” she estimated in response to a question from FOX 6 after a Milwaukee School Board meeting Tuesday night.
During that meeting, MPS officials presented initial steps to stabilize the district’s finances, including a soft hiring freeze, limits on class sizes to manage personnel costs, and other mid-year adjustments aimed at curbing further shortfalls. The district has set a goal of reducing the imbalance by June 30, with a more comprehensive plan expected in March.
A five-year budget forecast shared during the meeting projects repayment of the $46 million deficit through roughly $23 million installments in the current and next school years, assuming no major disruptions. However, without structural changes, the cumulative deficit could reach $420 million by the 2030-31 school year.
