While last year’s referendum gives Milwaukee Public Schools some short-term revenue relief, fiscal challenges still lie ahead for the district, according to a Wisconsin Policy Forum report.
Wisconsin Policy Forum analyzed MPS’ proposed 2026 budget in a report released on Friday. The report identifies potential federal funding cuts, the district’s reliance on savings from hundreds of vacant positions and a growing structural budget deficit as long-term obstacles for MPS.
MPS and other K-12 school districts nationwide face possible federal funding losses. The Trump Administration’s proposed 15% funding cut to the U.S. Department of Education as part of efforts to dismantle the department.
MPS’ 2026 budget proposal outlines savings of $75.9 million for vacancy and turnover, which is an increase of about $1.6 million from the 2025 budget. At the same time, the 2026 budget proposal includes a $61.7 million increase in total expenditures, with slightly more than half of that funding representing increases in salary and wage expenditures, the report says.
Wisconsin Policy Forum advises that MPS take steps to address vacancies in the district.
“It will be a difficult but critical task for (MPS Superintendent Brenda Cassellius) and her management team to determine a more reasonable vacancy adjustment that is based on the number and types of positions the district genuinely needs considering its reduced student population, and what it can afford given its future revenue challenges,” the report says.
The district’s budget deficit could reach $57 million by 2030 when the referendum has been fully phased in.
“The lack of considerable budget pain in 2026, however, should not mask the severity of MPS’ longer-term fiscal challenges, which are likely to emerge with greater intensity as soon as 2027,” the report says. “Not only will the positive impacts of the referendum begin to wane, but the district has balanced its budget in each of the past three years on the back of its hundreds of vacant positions … The likely unsustainability of that approach — coupled with the uncertain outcome of state budget deliberations — reinforces the precarious nature of MPS’ temporary budget calm.”
More articles about Milwaukee Public Schools (MPS):
- Instructional audit identifies ways to improve learning at MPS
- Local businesses and organizations commit $500,000 to support MPS superintendent
- The Interview: Brenda Cassellius, Milwaukee Public Schools
- MPS board approves contract for its next superintendent
- Next MPS superintendent feels ‘urgency’ to address operations audit recommendations and facility issues
- MPS operations audit lists dozens of recommendations requiring ‘urgent’ action for change
