MILWAUKEE (CBS 58) -- Milwaukee Public Schools (MPS) announced a major budget deficit Tuesday that could impact district finances for years. 

MPS has a $46 million deficit for this coming fiscal year. They plan to get aggressive. 

We've known for years the district faces significant financial challenges, and on Tuesday, we got a number.

It wasn't even two years ago when voters narrowly approved a $252 million referendum MPS said was needed to avoid cuts. 

Now, additional steps are needed to again avoid cuts. 

Among the things the district will do: review funds that are currently unspent, freeze non-essential new positions and contracted services, and study transportation costs. 

MPS also plans to cut Central Services staffing and contracts. 

Superintendent Brenda Cassellius said student learning would be protected. MPS will limit class sizes to 28 and maintain classroom teaching positions. 

“The good news for parents is we've done the cleanup," Sup. Cassellius said. "We've done three audits; we have a more accurate picture. And now we are planning and being more judicious, tightening our belt the way we need to to control for spending and to make sure we're doing really accurate planning in the future."

MPS will have a budget committee meeting at 6:30 p.m. Tuesday night. We'll have a full report coming up.