MILWAUKEE — Milwaukee Public Schools (MPS) is at risk of having state funding suspended after the district failed to submit required financial reports to the Wisconsin Department of Public Institution (DPI), nearly nine months after the reports were due. 

A spokesperson for MPS said the school district administration and the Milwaukee Board of School Directors are working with an external consultant to help submit the required data to move the process forward. 

MPS recruited Todd Gray, the former superintendent of the Waukesha School District, to amend the issue. He previously helped Glendale-River Hills School District navigate its own set of financial issues. MPS could pay Gray up to $48,000 for his work for the district from now through July, according to the district. 

According to MPS, Wisconsin DPI said the district will be able to recoup all delayed funds once the needed reports have been submitted.

Gov. Tony Evers, a former state superintendent of education, was asked last week about the district's problems.

“Am I concerned? Hell, yes,” Evers said. "Frankly, it does not look good.”

MPS said the delay in submitting the reports “will not have any impact on current staffing, hiring or other district operations.”

Wisconsin DPI emphasized it is important the required reports are submitted in a timely manner since MPS is the largest school district in the state and gets the most aid. Those reports could affect how much funding other school districts get across the state.

MPS said it is working with Wisconsin DPI to create an action plan “to streamline the reporting process and ensure any concerns are identified and resolved moving forward.”

“My goal, and the Department of Public Instruction's goal, is to make sure all kids have everything they need to succeed. My team continues to work with Milwaukee Public Schools to help solve this immediate challenge. We will continue to engage with them on a daily basis," State Superintendent Jill Underly said. 

“In Wisconsin's system of local control, elected school boards make decisions about district superintendent staffing. No matter how the board chooses to move forward, under my leadership, the DPI will continue working with the MPS team to resolve the current challenge. As we go forward, our primary focus is on improving outcomes for all of Milwaukee’s children," Underly continued. 

At 5:30 p.m. Monday, there was a public hearing for parents and the public to voice their concerns about the current financial situation at MPS. Many were fired up.

“The community should be listened to and treated with respect when coming to you with concerns. Instead, this is a broken system with no checks and balances in place to hold anyone accountable,” said parent Christina Avery.

Avery was one of the dozens who voiced their frustrations at the meeting, demanding transparency from the district.

“After a DPI letter came to light, I lost any remaining trust I had in those running the school district,” she said. “I do not trust MPS with my child and if a system fails me, I’m going to look elsewhere for a better system.”

Many also expressed their desire for Superintendent Keith Posley to lose his job.

“During Posley’s tenure we have witnessed not only the erosion of public trust but the years of tangible work that has been done in MPS,” said parent Jamel Harris.

MPS also had a school board meeting Monday night. MPS had shared prior to the meeting that the board could consider changing the “administrative assignment status” of its superintendent.

School board members on Monday night did accept the resignation of Posley, according to the Milwaukee Board of School Directors. It will go into effect on June 30.

The board said Regional Superintendent for the Southwest Region, Eduardo Galvan will step up to help with the role while MPS searches for a new interim superintendent. Galvan has been with the district for over 30 years.

“The Board has full confidence in Mr. Galvan’s leadership during this time,” Milwaukee Board of School Directors said in a statement.

The search for a new superintendent will begin right away, according to the board. There were no further comments from the board on the session or the resignation.

“It has truly been an honor to serve Milwaukee’s children for almost 35 years,” said Posley, thanking the community and the board following his resignation.

It was not immediately clear the reason for Posley’s resignation. In response to the action, Posley shared that he was just taking responsibility as superintendent.

“As the superintendent of schools, you take responsibility for everything, anything that happens. It’s under my watch, so I take responsibility for anything,” he said. “If the grass is not cut, it’s my responsibility. If the windows are broke out, it’s my responsibility. I take that responsibility.”

Milwaukee Mayor Cavalier Johnson reacted to the resignation in a statement Tuesday morning.

“I am committed to improving educational outcomes in Milwaukee. I’ve worked to build stronger relationships between the City and Milwaukee Public Schools, and the City and the Department of Public Instruction. Although not privy to every detail and decision point, I established monthly meetings with the MPS Superintendent. In addition, over the past few weeks my office has communicated regularly with DPI. I was as alarmed, as was the MPS Board of Directors, to learn of this looming crisis," the statement began.

Johnson said his top concern is "for the kids who attend Milwaukee Public Schools." The mayor said in the statement he and leaders of DPI and MPS have discusses a plan to "resolve the reporting and accounting mismanagement."

Johnson thanked the superintendent for his service and wished him well in future endeavors. Johnson said the need for greater assistance and support isn't only an MPS problem.

“My administration will continue to work to bring people together around education in our community. I hope the resolution of the financial reporting issues and the appointment of new leadership at MPS will serve as an impetus for leaders and community members alike to work more closely together to benefit all children, and not be used as an opportunity to further divide us," Johnson said in his statement. “Together, we can improve education in Milwaukee and make sure that our kids are best positioned for success.”

Amid Posley's resignation and the failure to report funding, some are asking if MPS should still receive the $252 million from referendum funding that voters passed in April 2024. 

“The referendum gives them the ability to raise revenue. It doesn’t say they have to raise revenue. The responsible thing to do would be to say, 'Hey, the feds have concerns; the state has concerns,'" Dale Kooyenga, Metropolitan Milwaukee Association of Commerce president, said.

He said voters should have been informed of the financial errors before they voted to help MPS out of a budget shortfall.

“Everyone is Wisconsin is a victim of this referendum that was put out there without the right information and school districts throughout Wisconsin are going to lose money on this,” Kooyenga said. 

In May, MPS was told federal funding for its  Head Start program will be suspended for 30 days. According to MPS, the Administration of Children and Families (ACF) said the decision to suspend funding was based on three program deficiences. ACF said those deficiences occurred between June 2022 and May 2024. In a press release, MPS did not state what those were.

The Associated Press contributed to this story.

Read the separation agreement below: