1. The recent referendum will not be enough to prevent serious fiscal issues in the next five years.
Milwaukee voters approved an $87 million annual operational referendum in April. Despite an existing annual budget of over $1 billion and the recent referendum, MPS (Milwaukee Public Schools) is still projected to have a $139.4 million annual deficit and $304 million in accumulated debt by 2024 in school operations alone.
2. The board is expanding pension benefits amid financial uncertainty.
The board approved the extension of the district’s Early Retirement Window, which gives any employee of the district, both teachers and other district staff, hired before 2013 access to early retirement at age 55 if they have 20 years of service and at least 70% of sick time reserved. The program will require the district to pay board subsidies to retired employees while also paying new employees to fill the positions.
This program was part of the district’s pension benefits to employees prior to the implementation of Act 10, but the program was eliminated in 2013. The board reinitiated the program in 2017. Between 2017 and 2019, 889 employees were eligible to utilize the Early Retirement Window, but only 31% actually retired.
Related: Tax base and government income decline.