Wisconsin's DPI ignored warning signs of Milwaukee Public Schools financial crisis

In 2023, serious financial mismanagement within Milwaukee Public Schools (MPS) prompted deep concern among Wisconsin's education officials. The Department of Public Instruction (DPI) was aware of MPS’s issues as early as February 2023, yet did not communicate the extent of these troubles to local governance until much later. An IRG report disclosed through public records that MPS missed crucial deadlines for financial reporting, contradicting Superintendent Underly's earlier claims of MPS making progress. By late 2023, DPI's finance team recognized the adverse consequences of MPS's late data submissions, stating they caused a significant political mess. This failure to act ultimately hindered not only MPS but could have repercussions across 420 other school districts in Wisconsin, undermining overall financial stability for the state's education system. The situation escalated when MPS sought a $251 million referendum in April 2023, with critics suggesting the lack of transparency regarding MPS's financial condition misled voters. Although Superintendent Underly expressed no immediate concern in interviews as late as June, internal documents highlighted a troubling inaction from both the DPI and Underly’s team. This inaction led to questions about accountability, especially when DPI's staff articulated clear critiques of MPS’s reporting methods, urging for standard protocols to replace erroneous financial data. Moreover, the report's implications resonate beyond just Milwaukee. The deficits and poor reporting practices not only jeopardized MPS but threatened the financial welfare of surrounding districts. This raised critical debates among policymakers and stakeholders on how the DPI handled its responsibilities toward MPS and other districts under its jurisdiction. As scrutiny increased, both DPI and Underly did not adequately respond to revelations in the report, raising concerns about transparency and accountability. In summary, the cumulative effect of these events depicted a significant gap in communication and action from DPI towards MPS’s reported financial struggles, revealing a critical oversight in maintaining the integrity of the public education system in Wisconsin. This has ultimately led to calls for reform and further investigations into how education finances are monitored statewide.