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Milwaukee Board Approves $1.6 Billion Budget to Close $46 Million Shortfall

Shifting money from central offices into classrooms to add teachers plus paraprofessionals, the budget leaves the district facing a projected $400–$420 million structural deficit over five years.

Overview

  • The Milwaukee Board of School Directors approved the $1.6 billion 2026–27 budget in an 8-1 vote on Thursday, May 28, balancing the district’s immediate $45–46 million gap.
  • The plan reallocates funds from central administration to schools and eliminates about 264 non‑classroom positions while restoring nine assistant principal posts after community pushback.
  • District officials authorized roughly 159 new classroom teachers and expanded paraprofessional hours up to full time to reduce class sizes, but parents and leaders warned that existing vacancy rates and a thin hiring pipeline may leave many roles unfilled.
  • Employees will receive a phased 2.63% cost‑of‑living increase split as 1.5% on July 1 and 1.13% in January 2027, a schedule that some union members have criticized as delayed.
  • Superintendent Brenda Cassellius and board members said the budget is a short‑term stabilization move because declining state aid and referendum returns could create a $400–$420 million structural deficit within five years, a risk that could force deeper cuts or school consolidations if outside revenue does not improve.