Erin Richards

Milwaukee Journal Sentinel

Facing a slight enrollment decline and rising health care and benefit costs, the Milwaukee Public Schools administration has proposed a 2017-'18 budget that cuts 96 teaching positions and 98 classroom assistant positions.

But MPS leaders said Thursday night at a school board budget meeting that layoffs will be minimal, and all in the central office, because many of the positions cut were vacant.

"The district will see a small number of layoffs — fewer than 10," said Shannon Gordon, senior director of financial planning and budget services.

The creative financial maneuvering comes as MPS enters a difficult time planning for the 2017-'18 school year and also the 2018-'19 year, when the effects of the first federal budget under President Donald Trump will trickle down to the local level. The district's proposed $1.2 billion budget for 2017-'18 is down $21 million from spending this year. That's largely because the district will not continue to borrow from its construction fund next year — an expected change, but one that nevertheless strains the financial picture for MPS.

Gordon said MPS would have faced a $54.8 million deficit next year if it continued to do business exactly the way it has this year. Enrollment is stabilizing, she said, but inflation has driven up other costs.

Some key items from the budget include:

Enrollment. MPS estimates it will educate 76,534 students in 159 schools next year. That's a 0.4% decrease from enrollment in 2016-'17.

MPS estimates it will educate 76,534 students in 159 schools next year. That's a 0.4% decrease from enrollment in 2016-'17. State aid. Gov. Scott Walker's budget offers K-12 schools a $200 increase in per-pupil categorical aid, which would bring MPS $15.4 million. But Walker didn't touch the revenue limit — that's the full amount districts can raise in state aid and property taxes annually — and that part matters a lot for poor districts like MPS. For example, the revenue limit for MPS next year will drop by $12.9 million. Walker has proposed directing $1.4 million to summer school opportunities in MPS.

Gov. Scott Walker's budget offers K-12 schools a $200 increase in per-pupil categorical aid, which would bring MPS $15.4 million. But Walker didn't touch the revenue limit — that's the full amount districts can raise in state aid and property taxes annually — and that part matters a lot for poor districts like MPS. For example, the revenue limit for MPS next year will drop by $12.9 million. Walker has proposed directing $1.4 million to summer school opportunities in MPS. Federal aid reductions. The federal budget has MPS losing $6.4 million in Title I funds for low-income students because a greater share must be sent to private schools serving similar students. But the district plans to carry over some current funding to plug holes. The real question is what federal funding will look like for MPS in the 2018-'19 budget, Gordon said.

The federal budget has MPS losing $6.4 million in Title I funds for low-income students because a greater share must be sent to private schools serving similar students. But the district plans to carry over some current funding to plug holes. The real question is what federal funding will look like for MPS in the 2018-'19 budget, Gordon said. Fringe benefits. The district reduced its fringe benefit rate in recent years, but next year the benefit rate will increase to about 50%, up from about 48% this year. That's primarily due to rising health care costs, according to the budget.

The district reduced its fringe benefit rate in recent years, but next year the benefit rate will increase to about 50%, up from about 48% this year. That's primarily due to rising health care costs, according to the budget. Staffing shuffle. MPS Superintendent Darienne Driver wants to reorganize some departments to prioritize instruction and culture in schools over building operations. The budget proposes a principal coach for each school and also a new office of black and Latino male achievement. The budget would also change the regional superintendent structure to group schools more by program type than by location.

Residents can weigh in on the budget at public hearings scheduled for May 16 and May 23 at Central Services, 5225 W. Vliet St.

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Erin Richards can be reached at (414) 224-2705 or erin.richards@jrn.com or @emrichards on Twitter.