Austin Public Schools imposed a soft freeze on teachers salaries and made moves toward district-wide cuts yesterday.

The school board approved a two-year contract that offers teachers a total package increase of 5.5 percent — with no direct salary bumps— over the 2009-2010 and 2010-2011 academic years Monday.

At the same meeting, the school board authorized district administration to seek $300,000 of budget cuts.

Teacher contracts

More than 90 percent of voting Austin Education Association members voted in favor of the contracts in December.

“This is a fair, yet reasonable settlement,” said district director of finance and operations Mark Stotts, during the meeting.

The 2009-2010 package is a 2.46 percent increase. It offers no salary increase, and no changes to insurance. Steps and lanes advancement — salary brackets determined by seniority and education level — will remain in place. The steps and lanes structure is what differentiates a soft freeze from a hard freeze.

In year one, teachers who are topped out with steps and lanes will receive a one-time payment of $750. That payment is meant to offset insurance increases, district superintendent David Krenz has said.

The 2010-2011 package is a 3.04 percent increase. Again, there would be no salary increase, no changes to insurance and steps and lanes would remain in place. A tenth step would be added, and the first step eliminated. This is meant to help the district attract teachers by offering new incoming employees a higher entry wage.

The school board approved the contract 7-0.

Budget cuts

As a direct result of flat state funding and a failed levy referendum this fall, district leaders will seek to restrict departments, eliminate positions and reassign duties to save $300,000.

Recommendations for cuts will be made at April, 12 at a school board meeting. Between now and then, the target reduction could increase.

“Keep in mind that with the legislative session starting, this conversation could change dramatically,” Stotts said.

State funding — which accounts for 76 percent of the district’s budget — is frozen through June 2011 and there is a possibility of cuts in the 2010 legislative session.

Some districts, including Robbinsdale, Minneapolis, Osseo and Anoka-Hennepin, have shut down schools in response to their financial situation.

State financial forecasts prompted the APS to put a levy increase on the ballot in November that would have brought $1 million into the district . It was voted down by 116 votes.

Further budget reductions are expected in the following year.

The school board approved the resolution to seek cuts 7-0.

The next meeting of the school board is Feb. 8 in the City Council Chambers.