The Forum's 16th annual report on public schooling in Southeastern Wisconsin reveals that spending increased 4% in Southeastern Wisconsin school districts to $2.8 billion last year, although the Milwaukee Public Schools (MPS) experienced a significantly smaller increase (2.7%). Part of this relatively small increase can be attributed to the district's 3% decrease in transportation spending, while the region's transportation spending increased 1.7%. Over the past few years, the state legislature and MPS have instituted policies intended to decrease transportation spending. By changing its transportation regions, and has implemented the Neighborhood Schools Initiative, which encourages students to attend their neighborhood schools and reduces the need for busing. Reported highlights included: (1) Little change in enrollment from last year; (2) Teachers in Southeastern Wisconsin received an average compensation of $62,447, 7% greater than teachers in the state overall; (3) Attendance rates in every county in Southeastern Wisconsin decreased between 1999-2000 and 2000-2001; (4) In 2000-2001, more students were habitually truant throughout Southeastern Wisconsin and the state than in the previous year; and (5) In 2000-2001, the State of Wisconsin's average composite ACT score for high school seniors was 22.2. (Contains 5 tables.) [This Brief was underwritten by Ehlers & Associates, Inc.]