Budget Planning: 2026–27

Fewer families having children, stagnant state funding ($0 increase in general aid in the current state budget), and the expiration of federal pandemic aid are some of the biggest challenges. The recently completed 2024–25 audit showed a $46 million gap between expenses and revenue driven in part by higher than budgeted costs for food services and transportation. If we do not make changes, the money we spend (expenses) will be higher than the money we take in (revenues). 

We have identified our priorities: protecting classrooms, keeping schools safe, investing in academic achievement, and restoring fiscal health. However, no specific decisions have yet been made. To be as transparent as possible, the district is sharing information throughout the planning process. 

Families, community members, and staff are invited to community sessions in February and March to share their input. 

The gap between our expenses and revenues would be even higher without the voter-approved referenda. Milwaukee’s voters are helping make up for the fact that state funding has not been keeping up with inflation. Wisconsin’s largest school districts recently wrote a joint message calling for the state to use its multi-billion dollar surplus to return to annual increases in state aid tied to inflation, which existed for many years until 2009.

Pandemic-era funds were one-time funds that are not ongoing or distributed every year and cannot be used for future expenses.

Yes. The district will be reducing Central Services staffing and reviewing all contracts in 2026–27. At the same time, we do not believe that this alone will generate enough savings to close the gap between how much money we are expecting to receive (revenues) and how much we would spend if trends continue (expenses).

MPS aims to maintain and even increase classroom teaching positions to cap class sizes. The exception is where lower enrollment requires fewer teachers, as has been the district’s longstanding practice.  

Providing competitive compensation remains a top priority for the district. We recently presented base wage options for employees represented by the Milwaukee Teachers’ Education Association (MTEA) and the Psychologists Association of the Milwaukee Public Schools (PAMPS). Our proposal would increase base wages for employees in these units by 2.63% by January 1, 2027. (The 2.63% figure reflects the full amount of the Consumer Price Index increase, often used to measure inflation.)  

Consistent with our pledge for transparency throughout the budget process, we are sharing the full proposals for MTEA and PAMPS. You can watch the meetings for MTEA and PAMPS as well.   

Our priorities include protecting classrooms and investing in academic achievement. We expect principals will be able to share their potential budgets in March.

MPS and districts around Wisconsin continue to call for the state to use its multi-billion dollar surplus to provide increases in general aid as was done for many years prior to 2009—and we continue to call on the state to fulfill its promise to support more special education funding.  If the state adjusts its two-year budget and adds money for general aid or special education, it could provide a better budget scenario for all Wisconsin school districts.

At the February Strategic Planning and Budget meeting, the board approved investment in schools located in communities where there has been historic disinvestment. These schools include Brown Street Academy, Douglas School, Gwen T. Jackson School, and Frances Starms Discovery Learning Center. This investment comes from a separate fund that cannot be used for ongoing MPS expenses (like salaries or benefits), so it does not affect the budget gap. 

This will be one of a number of priorities we will need to plan for in 2026–27, alongside our focus on academic achievement and literacy, safe and welcoming schools, and efficient operations.

While recent referendum funding has helped stabilize our budget, that funding will not increase moving forward, and state aid has not kept pace with inflation. We have to recognize that we do not have a steady stream of future revenue to cover rising costs and account for this in our budget process. We will have a better idea of what future budgets will look like once the District’s five-year forecast is complete.

This is a statewide issue. Wisconsin set records for voter-approved referenda in 2024, the same year as MPS’s referendum. In December, a group of Wisconsin superintendents wrote a message noting that the state provided no increase—$0—in general aid for public school students. And in January, MPS Superintendent Brenda Cassellius joined the superintendents of the Green Bay, Kenosha Unified, Madison Metropolitan, and Racine Unified school districts in calling for a bipartisan solution to provide regular increases to school funding tied to inflation, as had been Wisconsin’s past practice.