The financial crisis inside Milwaukee Public Schools could tear millions in state aid away from nearly every other school district in the state.
The ripple effect stems from the recently approved $252 million MPS referendum, and ultimately, taxpayers across Wisconsin will have to pay more.
That's according to an analysis by the Legislative Fiscal Bureau.
Andrea Albers with Lighthouse, TMJ4's specialty reporting unit, took the report to area superintendents who say a loss in state aid will be difficult to swallow for several reasons.
Dr. Jeridon Clark is the superintendent of the Cedarburg School District. His district stands to lose more than $200,000 in state funding based on Milwaukee's recently approved referendum.
"When our district and our taxpayers are impacted by things that aren't of any of our doing — it is disappointing," he said.
The impact on Cedarburg schools is included in the hypothetical analysis by Wisconsin's Legislative Fiscal Bureau.
It examined the potential impact of Milwaukee Public Schools spending an additional $140 million dollars in the first year of its referendum.
That spending would increase MPS's state aid by nearly $50 million because the state provides aid based on factors like student enrollment, property values, and spending.
"Our district has higher property values and so because of that, we don't get as much state aid as other districts," added Dr. Clark.
In addition to Cedarburg, the report shows more than 350 districts would also receive less aid.
- Kenosha -$858,350
- Racine -$1,986,050
- Waukesha -$2,084,964
- New Berlin -$990,777
- West Bend -$1,065,287
"I haven't seen anything like this where one district's actions are going to have this big of an impact across the state," said Dr. Joe Koch.
Dr. Koch is the superintendent in Mukwonago. His district is estimated to lose more than three-quarters of a million dollars.
"That number is a concerning number to us,'" said Dr. Koch in reaction to seeing a reduction of $760,151 for Mukwonago schools in the Legislative Fiscal Bureau's analysis.
"What do we levy from a taxpayer standpoint?" he wondered aloud. "What reductions would we need to make in our system in order to find the balance between this aid reduction? And then what is our budget?"
Local property taxes and state aid are both restricted by revenue limits. The intent of the school funding formula is equity, something Dr. Koch applauds — but he calls the impact to his district based on the passage of MPS's referendum unprecedented.
"In 23 years of education, I've not seen a similar situation," he remarked.
The actual impact of increased spending by MPS through a referendum would not be felt until the 2025-26 school year. Many things can happen beforehand, including action by state lawmakers to increase the pot of available state aid.
"It is unfortunate, it is concerning, and it is disappointing," continued Dr. Koch. "We do hope that Milwaukee gets things figured out, but that also the state takes a look at this and doesn't hold this against all school districts."
Click here to see how your school district could potentially be impacted by the MPS referendum:
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