The Albert Lea school board unanimously approved a teacher-pay contract this morning, which will translate into a total increase in cost of about $700,000 to the Albert Lea School District over the next two years.

The biggest increase, as in most workplaces, is in health insurance at $163,575 more than before for the 2009-10 academic year and $176,409 more in 2010-11.

“These were long negotiations, probably some of the longest I’ve been associated with as a board member,” said Chairman Bill Leland. “But the thing that impressed me was the collegial effort from both sides to reach an agreement … I definitely saw a concerted effort on the teachers’ side to come up with not only something they could agree on, but we could agree on too.”

The contract includes the same language for health insurance, but because of increased cost in premiums, the cost will increase for the district.

The district currently pays 92.5 percent of a single employee’s premium, plus an additional $255 for a family premium, according to district Finance Director Lori Volz. This will stay the same for the 2009-10 and 2010-11 school years.

During 2009-10, there will be no increased costs for step changes. Steps in pay scale are achieved with longevity. However, there are $26,663 additional funds for lane changes. Lanes are rewards for advancement in academic degrees for teachers who have already applied for them before the contract was approved. No new lane changes will be approved until July 1, 2010.

There will be no general salary increase in either years.

The total increase in cost for the district for the 2009-10 academic year is $212,125.

As for the 2010-11 academic year, there will be $506,229 in additional costs. In that year, steps take a leap, costing the district an additional $157,548. Lanes will cost an additional $97,811.

Volz said at the start of the 2010-11 fiscal year, teachers will immediately get a step advancement, and then on June 30, 2011, which is the last day of the contract, they will be eligible for another.

The two-year package’s total increase will be 2.61 percent more than the existing teacher-compensation plan.

Superintendent Mike Funk said he thinks one of the good things about the contract is the health insurance piece. He noted at some point there had been discussions about the district contributing more to the health insurance premiums, which would have doubled the costs because of increases in premiums too.

“I think by maintaining the current language in the health insurance piece, I think that was a good thing for the district,” Funk said.

He said he and Volz are hopeful that the teachers and the district can look into a high deductible plan as well, which can save more on health insurance costs in the future.

Language regarding 403(b) tax-sheltered annuity — a sticking point during the long negotiations — also stays the same regardless of changes in state legislation that the school board disliked. There is a $9,987 increase during the 2009-10 academic year and $29,447 increase during 2010-11.

The contract also adds language stating that Early Childhood Family Education and Adult Basic Education teachers will earn one hour of general leave for every 18 hours worked, subject to approval, that can be used for employee illness, family illness, bereavement or snow days. Each one of these teachers can accrue up to 72 hours of general leave each year, with maximum unused hours of 320 hours.

A few of the board members this morning thanked their fellow members who were involved with the negotiations for their long hours and hard work in reaching an agreement. Bill Villarreal was the lead negotiator.

The teachers met on Tuesday at Southwest Middle School to discuss the agreement.

The teachers were expected to vote on the agreement Thursday morning.

The agreement comes with the district facing a Friday deadline. If the district hadn’t approved a contract with the teachers by then, it would have faced a state fine of $94,000.