March 14, 2024- Hannibal MO, As part of our ongoing commitment to fiscal responsibility, Hannibal Public Schools announces its proactive measures to address challenges in the operating fund for the upcoming budget year.

In Missouri, public school districts rely on two tax levies, the Operating Levy, and the Debt Service Levy, each serving distinct purposes under state statutes. The Operating Levy funds general operating expenses, while the Debt Service Levy supports debt obligations such as bond issues.

In our initial budget preparations for the upcoming fiscal year, we've identified several large factors impacting our operating fund. A $3.3 million shortfall has been identified as a result of less-than-expected revenue and higher-than-expected expenditures on the preliminary budget, which was presented in July for this school year.

Revenue Challenges: 

Expenditure Pressures:

  • Decrease in student enrollment

  • Loss of one-time federal ESSR funds

  • Increase in student absences

  • Assessed valuation not meeting predicted levels

  • Decreased tax revenue due to local business closures

  • Additional staffing to address learning loss post-pandemic

  • Increased need for supplies/resources for student safety and learning support

  • Capital projects exceeding budget

  • Rising costs of operational supplies

  • Salary and benefit increases for staff recruitment and retention

In response to these findings we’ve developed a plan moving forward .

  • We’re closely  monitoring expenditures for the remainder of this year. 

  • For next year, we are evaluating the decrease in enrollment that has taken place over several years and will be reducing the number of staff through attrition caused by resignation and retirement.

  • The finance forecasts put out by the DESE and Governor's Office are predicting an increase in state revenues provided by the state basic formula. This could provide a significant increase in state revenues received by the district. 

  • The maximum operation tax levy approved by the voters that live in the district has been voluntarily rolled back by the BOE for many years. Based on the increase in operating costs, it is recommended that the rollback be reevaluated.  

Superintendent Susan Johnson emphasized, "We remain committed to providing quality education while ensuring fiscal prudence. These proactive steps will enable us to navigate challenges effectively and continue serving our community by helping our students thrive. Thank you for your ongoing support and encouragement."

To ensure transparent communication, Hannibal Public Schools has been actively informing staff about this challenging news throughout the week. A list of frequently asked questions (FAQs) has been compiled and is available here.


For additional information Contact:
Andrea Campbell