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State threatens to withhold funding to MPS; alleges incomplete financial reports

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MILWAUKEE — The state is threatening to suspend funding to Milwaukee Public Schools.

A letter sent to MPS Superintendent Dr. Keith Posley on Friday by the Wisconsin Department of Public Instruction (DPI), said MPS has failed to provide key financial reports dating back 8 months.

DPI alleges in the letter that MPS has overdue financial reports from as far as last September.

The letter went on to say the issue impacts every school district in the state because DPI needs the data to estimate the amount of state funding each district will get for the next school year.

The letter also said MPS would likely see a "significant reduction" in state general aid payments in 2024-2025 because of errors in reported costs for the 2022-2023 school year.

In a joint statement Wednesday, the school board members said "We take this matter seriously and we are confident that we will be able to course correct promptly."

The school board's next meeting is set for Thursday night.

The board is scheduled to discuss superintendent Keith Posley's performance and employment, as well as his proposed budget that calls for cutting nearly 300 staff positions.

TMJ4 will be there for that vote and the public comment.

Read the full statement of the Milwaukee Board of School Directors below:

"On Friday, the Milwaukee Board of School Directors (Board) received a letter (attached) from the Wisconsin Department of Public Instruction (DPI). We are aware of the matter and are working closely with DPI and multiple stakeholders to resolve the situation as quickly as possible. We are committed to ensuring all requested information is submitted in a timely manner. The Board remains committed to its obligations to our students, their families, and the people of Milwaukee. We take this matter seriously and we are confident that we will be able to course correct promptly."


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