Gov. Tony Evers ordered the two audits into Milwaukee Public Schools in 2024. Evers meets children at a Dane County child care center in 2023. (Erik Gunn | Wisconsin Examiner)

An audit released Thursday found that Milwaukee Public Schools faces challenges due to declining enrollment, competitive school-choice dynamics, a teacher shortage and staff turnover as well as a “culture of fear” and resistance to change. The district needs to make systemic changes, the audit found, in order to adequately support its students, especially those who are the most vulnerable.

The operational audit was ordered by Gov. Tony Evers after news broke that the district has been excessively late in submitting required financial documents to the Department of Public Instruction. The crisis led to the resignation of Keith Posley as MPS superintendent and the state Department of Public Instruction withholding $16.6 million from the district.

The independent audit, conducted by MGT of America Consulting LLC, is the first of two ordered by Evers,  who formerly served as state superintendent and as a public school teacher. The second, ongoing audit is meant to examine the effectiveness of teaching and instruction in classrooms. 

“This audit is a critical next step for getting MPS back on track and, ultimately, improving outcomes for our kids,” Evers said in a statement. “I urge and expect the district to take these recommendations seriously and move forward quickly with implementing this audit’s findings.”

Evers allocated $5.5 million from federal American Rescue Plan funds for the audits and said there is a remaining $3 million that will go towards ensuring the district can start implementing the recommendations. 

Evers said that he will also propose allocating an additional $5 million in his 2025-27 budget to provide ongoing support to address audit results and implement audit recommendations, though he would need the Republican-led Legislature to allocate the money. The money would only be awarded to the district if the state thinks MPS has made substantial and sufficient progress implementing the audit recommendations. 

“MPS must make systemic changes to ensure that students — particularly the most vulnerable — are at the center of every decision,” auditors wrote. “Ultimately, this work is in service of students, whose future success hinges on a district capable of delivering equitable, high-quality education.”

The audit acknowledged that “proficiency rates sit at just 9% in math and 12% in reading, far below state and national averages, signaling a systemic failure to prioritize student outcomes.” 

The audit identified internal and external factors that have contributed to the challenges the district has faced. 

Internal factors included leadership instability, including a series of superintendents with short tenures and revolving leaders, a “culture of fear and reluctance to change,” high turnover and recruitment challenges, ineffective reporting protocols that have hindered accountability and financial mismanagement, lack of honesty, transparency and ineffective public communications that have contributed to a lack of public trust. 

External factors included stalled population growth and enrollment declines, “competitive school-choice dynamics,” national teacher and staff shortages, MPS students who face significant economic challenges and outdated facilities that have made it difficult to maintain healthy, safe and adequately equipped learning environments.

“These challenges, coupled with outdated facilities and a history of financial mismanagement, have eroded public trust and disproportionately affected the District’s most vulnerable students,” auditors wrote.

The audit laid out goals that the district should prioritize that include creating a “coherent central system,” “fostering meaningful communication and collaboration across departments within the District” and operating and funding strategically by investing in strategies and systems that prepare the District for financial sustainability, operational efficiency and long-term success. 

Some of the specific recommendations include hiring a chief communications officer and chief operations officer, restructuring the central office to clarify roles, investing in the Office of Human Resources, redesigning employee reporting processes, investing in training for the Department of Research, Assessment and Data, continuing to use support offered by DPI and improving collaboration between the MPS Board of Directors and district leadership.

MPS said in a press release that the audit “validates the progress we are making while also serving as a guide for continued improvements.”

“It highlights the strength of our existing systems and the dedication behind key initiatives, reinforcing the steps we have taken to move our students forward. At the same time, it identifies areas for growth, reaffirming our commitment to continuous improvement,” MPS stated. “While acknowledging the need for focused support, the report makes clear that we have an opportunity to build on this momentum, strengthening our schools and communities while creating a more unified path forward.”

DPI Superintendent Jill Underly said in a statement that the audit “offers a clear and practical blueprint for getting the district back on course, ensuring it better serves students and families.” 

Underly said she was optimistic that the district would turn the recommendations into “meaningful change” with the leadership of Brenda Cassellius, who was selected this week by the Board to be the new MPS superintendent and previously served as superintendent of Boston Public Schools and commissioner of education in Minnesota.

“This report also underscores the importance of the DPI’s ongoing efforts to support MPS in financial reporting, including the development of a Corrective Action Plan. These efforts are both realistic and essential for helping the district regain compliance and thrive,” Underly said.