After nearly a year of bargaining, the Pajaro Valley Unified School District has a contract with its teachers. But the district's own leaders say the deal only holds together if schools close.

Trustees approved the three-year agreement with the Pajaro Valley Federation of Teachers on Wednesday night. Trustee Misty Navarro abstained and Trustee Gabe Medina was absent, the Santa Cruz Sentinel and The Pajaronian reported. Union members had already ratified the deal in September, with 85% voting yes.

What teachers get

The contract runs from the 2025-26 school year through June 30, 2028. It gives a 2% raise retroactive to July 1, 2025, followed by 1% raises in each of the next two years. It brings back a $250 classroom supply reimbursement for each teacher and adds instructional aide time in kindergarten classrooms. It also settles two pending unfair labor practice cases.

The biggest fight was over health care. The Sentinel reported that the district had proposed capping two of its health plans at $36,000 a year, which the union said would amount to a pay cut, since about 80% of employees use one of those two plans. Union members voted to authorize a strike if mediation failed. The final agreement leaves out the cap. Instead, union president Brandon Diniz said, both sides will look together for ways to lower health costs. "We compromised on salary in order to maintain our benefits," he said.

Aptos High's schedule changes

Starting in 2027-28, Aptos High School will move from seven class periods to six, and an extra teacher collaboration period will go away. District documents project that this will cut about eight full-time teaching positions. Some students and families objected. Navarro said the community never had a real chance to weigh in.

The money problem

Consultant Douglas Crancer told the board the district can afford the deal, but only if it finds about $20 million in cuts or new revenue by 2027-28 to keep the state-required 3% reserve. The Pajaronian reported that the district expects its combined general fund balance to drop from about $86.6 million this year to $44.3 million in 2028-29.

Superintendent Heather Contreras said the county Office of Education has warned that the district will likely get a "qualified" financial certification in December. That would mean it may not be able to meet its obligations in future years. She blamed fully funded employee health benefits and running too many schools for a shrinking student body. "We have to close schools and we have to do it urgently," she said.