Milwaukee schools face a $46M budget deficit

The Milwaukee Public Schools board of directors will consider several mid-school-year cuts Tuesday after auditors found the district spent $46 million more than it budgeted in 2024-25. 

After completing three financial audits in 13 months — two of which had been significantly overdue—the district now has a clearer picture of its current financial position, Superintendent Brenda Cassellius said in a statement Friday evening. 

“The audits have identified an estimated $46 million gap between revenues and expenditures,” Cassellius continued. “MPS is working to reduce that imbalance by June 30 to lessen the need for future cuts.”

To do this, the district will: 

• Review unspent funds set aside in the budget 
• Freeze non-essential new positions and contracted services 
• Increase participation in federal nutrition programs 
• Conduct a study on transportation costs  
• Review existing district contracts 
• Seek additional reimbursements for high-cost special education services 
• And fully leverage state and federal grant opportunities to accelerate initiatives  

“These decisions are not easy,” Cassellius wrote. “They reflect our unwavering commitment to putting students first, protecting classrooms, and ensuring the long term wellbeing of Milwaukee Public Schools.”  

MPS has to continue to look at spending in the next fiscal year, plus the cost of negotiated wage increases. 

Cassellius said one way MPS plans to address the shortfall is by reducing staffing at the central office. 

This week, an updated capital improvement budget will be presented to the school board. 

But Cassellius said students will remain at the center of the proposal. 

The plan will limit class sizes at elementary schools to 28 students, with smaller classes in K3-K5 and a middle school cap of 32. 

“Our budget is a reflection of our values, and for us that begins with students and classrooms,” Cassellius wrote. “Even as we confront significant financial challenges, we are making deliberate choices to protect teaching and learning, invest in our staff, and ensure resources are directed where they are needed most.”

Colleston Morgan Jr., who leads City Forward Collective, a nonprofit and advocacy group in Milwaukee, says even if the school board agrees to Cassellius’s planned cuts, the long-term financial outlook for MPS is concerning.

“The district projects a cumulative deficit of $420 million by the end of the 2030-31 school year if it continues on its current trajectory,” Morgan said.

Editor’s note: This story will be updated