Gov. Evers criticizes DPI in wake of MPS financial crisis

MADISON, Wis. (CBS 58) -- Governor Tony Evers criticized the state agency that oversees every school district in Wisconsin for waiting nearly a year to inform the public about Milwaukee Public Schools' financial crisis.

Evers, who previously served as the state superintendent of public instruction for nearly a decade, said the agency made a "mistake" by not telling the MPS school board members and others about the district mismanaging their finances despite knowing about it for months.

"To allow it to happen…without notifying the school board or others, I think that was a mistake on their part," Evers told reporters after a groundbreaking ceremony in Jefferson County.

"They should have gone to the board, but that's now all water under the dam and we need to make sure it doesn't happen again."

In response to Evers' comments, the Department of Public Instruction said they are focused solely on solving the problem at MPS to bring the district into compliance. DPI first began meeting with MPS eight months ago to work through multiple errors and delays in their financial reports to the state.

CBS 58 has sent multiple requests to DPI for an interview with the elected state superintendent, Jill Underly.

When asked, Evers said he was made aware of the MPS situation "probably about the same time" media outlets began reporting on the DPI letter sent to the district last month warning they may withhold millions of aid payments.

While Evers was willing to discuss the problems facing Wisconsin's biggest district, leaders on the Milwaukee Board of School Directors continue to avoid questions Wednesday.

Ahead of a special board meeting to discuss the open board clerk position, the board's vice president, Jilly Gokalgandhi declined to answer questions on her way into the district's central office.

"It's a dynamic process. We'll have answers for you when we do," Gokalgandhi told a CBS 58 reporter. "Thank you for your interest. I appreciate you."

MPS is now working with the DPI to provide audited financial reports that are now, in some cases, more than eight months overdue. 

The accounting crisis resulted in the superintendent stepping down and the district losing nearly $17 million in special education funding. While the district could eventually get that money paid back, MPS is likely to lose tens of millions of dollars in state aid withheld from the 2024-25 budget to make up for overpayments the district previously received due to inaccurate data it gave the state.

DPI continues to work with MPS on a corrective action plan to ensure all school districts receive funding for the 2024-2025 school year. Without accurate financial data from MPS, school districts across the state could be stuck waiting for the early aid estimates they normally get in July.

The fallout at MPS led the Evers administration to launch a pair of audits examining MPS' operation and academic performance, a task the governor said could take more than a year to complete.

Evers said until the audits are finished, he's not open to making sweeping changes to how MPS governs.

"Not yet," Evers said. "I want to wait until the audit [is done]. I do know regardless of the audit they have to get the damn information to the state."

The governor also said DPI will not be helping conduct the audits with the two outside firms his office plans to hire to review MPS. Instead, Evers said, DPI can "suggest certain things that need to be rectified."

The MPS board will meet again Thursday. Among the items on the meeting's agenda are discussion of possible interim superintendent candidates and voting to pass an amended version of Posley's proposed 2024-25 budget.

While former MPS Superintendent Bill Andrekopoulos called for Evers to appoint a special commissioner to oversee MPS, Evers shot down the idea Wednesday, saying he believed any decisions on an interim district leader should be made locally.

There have been calls, including from elected officials such as Ald. Scott Spiker, for the MPS board to hold off from raising the property tax level by $140 million next year, which is the maximum amount allowed by the referendum Milwaukee voters narrowly passed in April, which can generate a total tax increase of $252 million over the next five years.

MPS leaders have said they not raising the tax levy by the highest amount possible would force even deeper cuts since the referendum amount isn't enough to balance the upcoming budget, which has led to a proposal to eliminate more than 100 teacher coach positions; those individuals will then move back into the classroom and fill vacant teacher openings.

In addition to reporting its financial data to the DPI, MPS is also required by state law to give annual financial reports to the city clerk. In an email, Milwaukee City Clerk Jim Owczarski said his office had such reports from each year between 1975 and 1999.

Since 2000, the clerk only had MPS data for the 2003-04 year. City Comptroller Bill Christianson said his office has copies of MPS financial reports from every year between 2001 and 2022. Christianson said his office typically would've received a report for the 2022-23 year by January.