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State withholding $16 million state aid payment to MPS; Mayor Cavalier Johnson to discuss next steps Friday

The letter follows a warning from DPI threatening to suspend funding to Milwaukee Public Schools due to MPS failing to provide key financial reports dating back 8 months.
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MILWAUKEE — Milwaukee Mayor Cavalier Johnson will hold a news conference on Friday to discuss future steps to improve education in Milwaukee and to address the immediate challenges at Milwaukee Public Schools.

“We have reached an extremely important juncture in our systems of education in Milwaukee. Plans must be advanced to address leadership and financial issues at MPS, and we must work together to make sure all Milwaukee children have the best opportunity to learn,” Mayor Cavalier Johnson said in an emailed statement Thursday evening. “I will use my position to work with elected and appointed education leaders to reach our mutual goals.”

Wisconsin's Department of Public Instruction withholding state aid payment

This comes after news of the state withholding $16 million from the Milwaukee Public School District.

On Thursday, Wisconsin's Department of Public Instruction sent a letter to MPS Superintendent, Dr. Keith Posley, informing him that DPI is withholding the district’s June 2024 Special Education Aid Payment in the amount of $16,623,612.

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The letter follows a warning from DPI threatening to suspend funding to Milwaukee Public Schools due to MPS failing to provide key financial reports dating back 8 months.

Thursday's letter from Deputy State Superintendent John W. Johnson said DPI will continue to work with MPS "to develop a plan for submitting the district's financial data so these payments may be released soon."

The Milwaukee Board of School Directors responds

The Milwaukee Board of School Directors responded to DPI's letter Thursday afternoon, in an emailed statement, saying MPS and DPI have been in "close communication to resolve this issue and the district was aware that this payment would likely be delayed."

MBSD emphasized that their top priority continues to be ensuring that all key required financial data is submitted to DPI as quickly as possible.

They added the district is "finalizing a Corrective Action Plan (CAP) that will specify how MPS plans to complete and submit all past due financial reports to DPI," and that MPS is "optimistic that the CAP will allow the district’s general aid payment to be received on time, and that its special education aid payment will also be released at that time."

The statement ended with MBSD emphasizing that they are working closely with their auditors and DPI to complete all documents and reports necessary as required by law. 


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