The St. Paul school board and the union representing teachers and support staff have signed off on a new contract that will cost the district an additional $37.5 million over two years.

Board members approved the agreement Tuesday night after it was ratified a week ago by members of the St. Paul Federation of Educators (SPFE), and it includes 4% pay raises in the coming school year.

The deal was reached less than a week before a potential strike, with some school board members at the bargaining table. They have expressed hope the collaborative spirit will continue.

"There's a lot of work ahead of us," Halla Henderson, chair of the board, said Tuesday. "I'm super excited to take this next step and to continue moving forward."

The contract changes will cost the state's second-largest district about $19.2 million in 2023-24 — the first year of the deal — and exceeds the $12.4 million that the school system had budgeted for this school year, said district spokeswoman Erica Wacker.

The price tag in 2024-25 — the second year of the deal — is $18 million, and it is not expected to increase next year's projected deficit of $107.5 million, Superintendent Joe Gothard has said.

The contract calls for 4% raises in the 2024-25 school year, plus fixed increases, retroactive to Jan. 1 of this year. Those fixed increases are: $3,500 for licensed staff, $3,084 for school and community service professionals; and an hourly increase of $2.25 for educational assistants.

The district also has agreed to increase its contributions to health insurance and to keep class sizes and mental health staffing at current levels. Special education teachers will be given more time to complete paperwork. Early childhood special education teachers also will see reduced caseloads.

The focus on heftier wage and benefit increases marks a departure from previous years when the SPFE was able to persuade the district to make additional staff hires instead.

Union President Leah VanDassor said last week: "I'm proud of the improvements we won for our schools with this contract and the past progress we were able to expand upon."