After receiving a scolding from state officials over missing financial reports for Milwaukee Public Schools, the district recently hired financial consultant Todd Gray, who helped the Glendale-River Hills School District with its financial woes.
MPS will pay Gray, a former Waukesha School District superintendent, up to $48,000 to work with the district from now through July, according to the public notice.
Gray began his job Monday even as state officials threatened to cut off funding to the district after it failed to submit some financial reports to the state Education Department that were required to be filed more than eight months ago.
To avoid the suspension, DPI suggested MPS hire a financial consultant to help the district develop a corrective action plan to complete the missing reports and meet upcoming deadlines.Hiring Gray is MPS' answer.
Milwaukee school board members are also considering disciplining or firing Superintendent Keith Posley.
Gray was hired by the district's Office of Accountability and Efficiency, whose director, Matt Chaisson, said Gray was highly regarded.
“Given his record and his recent support for other districts with similar financial challenges, it's only natural that we would make that choice,” Chaisson said.
Gray recently helped the Glendale-River Hills district after it made major financial mistakes.
Gray was hired by the Glendale-River Hills School District after its financial director admitted in January that he had significantly misestimated the district's finances earlier this year.
In this case, board members voted for the budget months beforehand without realizing that the district was running a large deficit. When board members learned of the error, they had to cut 13 staff positions to close the deficit. The district's finance director and superintendent resigned.
In the case of MPS, board members learned of the issues with the district’s financial reporting just before they were due to vote on the district’s budget for the upcoming school year, and they decided to postpone that vote.
MPS must address reporting gaps, financial errors
Next up for Gray and MPS is completing an audit of the district's finances for the 2022-23 school year. The district is due to provide the auditor's reports in September and December of 2023.
MPS communications director Nicole Armendariz said the district's audit is being conducted by Baker Tilly, the firm that has been conducting annual audits of MPS for more than 10 years.
A DPI spokesman said state officials could withhold special education payments to school districts on June 10 and general aid payments on June 17 if the districts don't develop corrective action plans.
If DPI were to stop funding MPS, the district would be able to recoup the funds once it completes its report, DPI officials said. In the meantime, MPS could access short-term bonds from the city. District officials said the funding cut would not affect staffing, hiring or other operations.
Potentially more significant, DPI also found that MPS made errors in reporting expenses for the 2022-23 school year. The errors could result in a reduction in state aid for the 2024-25 school year. A DPI spokesman said the reduction could be in the tens of millions of dollars, but more information is needed to determine how much.
Gray is scheduled to attend a meeting Monday night where supervisors could face challenges.
Chaisson said Gray is scheduled to appear at a school board meeting on Monday, where board members will discuss Gray's hiring. Chaisson said Gray is already hired and district policy does not require a board vote.
Board members also plan to consider “termination, demotion, license and/or disciplinary action” against Posley at Monday's meeting. Board members will also discuss Posley's compensation and performance evaluation data and may consult with legal counsel, according to the meeting notice.
The board had postponed a vote on the 2024-25 budget, which would cut about 300 staff positions, to get more information about the district's finances, but the meeting will also include a public hearing on the district's budget.
Community members can attend the board meeting in person at the district's central office on Monday at 5:30 p.m. or stream it online.
