State releases $8M to MPS previously withheld for financial mismanagement

The Wisconsin Department of Public Instruction released $8 million in previously withheld state funding to Milwaukee Public Schools on Friday. 

It’s the last installment of withheld funds from the state, and marks a milestone for the school district in its ongoing work to correct financial and operational issues previously uncovered. 

MPS also submitted its external financial audit for 2024-25, the third audit completed in 13 months. 

MPS Superintendent Brenda Cassellius said since arriving in Milwaukee in March, her focus has been on improving operations in the district to rebuild trust and transparency. 

“I’m proud of the team here at MPS who committed to fixing these significant issues with a sense of determination and Milwaukee pride while facing intense public pressure and scrutiny,” Cassellius said in a statement. 

DPI first notified MPS in May 2024 that it could lose millions of dollars in state funding because it missed reporting deadlines for required financial reports to the state. The money was ultimately held back after the district failed to submit the reports.

The ensuing scandal led to the resignation of former Superintendent Keith Posley, state audits of district management practices and the creation of a 29-page corrective action plan to address problems in the district’s office of finance and management.

Cassellius was hired in March to replace Posley.

In her time with MPS, she has focused on updating the district’s financial systems based on findings of the state audit, while also dealing with the fallout of a lead poisoning crisis that forced the temporary closing of several schools.

In December, MPS and the city said lead remediation work across the district was complete.