Milwaukee School District cites $46M shortfall and offers phased CPI options as union demands full 2.63%

Milwaukee School District Superintendent Bridal Caselli told union negotiators on the opening day of collective-bargaining talks that the district is "facing a $46,000,000 structural deficit between revenues and expenses" identified in the recent audit and framed the session as limited to total base wages under Wisconsin law.

Caselli presented three administration options to reach the statutory consumer price index ceiling of 2.63% without triggering a referendum: Option A would delay the full increase until Jan. 1, 2027 (estimated FY‑27 savings about $20 million); Option B would phase increases by employee category (hourly staff on July 1, 2026, salaried staff on Jan. 1, 2027; estimated savings about $17 million); and Option C would split a 1.5% increase on July 1, 2026 with the remaining 1.13% on Jan. 1, 2027 (estimated savings about $10 million). Caselli said those timing differences were driven by the district's budget constraints and by limits on new referendum revenue after fall 2028.

The district also flagged board-level program proposals that are outside mandatory bargaining, including consideration of class-size caps — 32 for middle school, 28 for elementary and 22 for kindergarten — which the administration said would require roughly 140 additional teaching positions at an estimated cost of about $25 million.

An MTEA negotiator read the union's opening demand, calling for a 2.63% base-wage increase for the 2026–27 contract year to be effective July 1, 2026, for multiple represented units (accountant/bookkeeper, educational assistants, teacher unit, ESP 150 council unit and substitutes). The negotiator said the increase should remain in effect through June 30, 2027.

The union pressed the district for additional data. MTEA asked for the district's actual total-wage figures for all MTEA‑represented units; Caselli committed to provide that information later that week or early the next week. The parties also clarified that some units (ESP 150 and substitutes) would be treated as "meet and confer" rather than certified bargaining units for purposes of this session.

Union representatives stressed staffing pressures as a reason for their demand: a negotiator recalled that nearly 400 workers previously testified in favor of full CPI, argued that prior full CPI helped reduce turnover, and said the district currently has roughly 300 vacancies across teacher, paraprofessional and CHA roles. The union characterized the administration's opening proposal as "extremely disturbed and incredulous," signaling a wide negotiating gap.

With procedural questions answered, the parties paused to caucus and agreed to exchange potential dates for a follow-up bargaining session and any counterproposals prior to reconvening. The district said it was ready to receive written counterproposals and to continue discussions.

Next steps: the district will provide the requested total-wage figures and both sides will propose dates for continuing bargaining. No binding decisions or votes were taken during the session.