The Mankato Area Public Schools board voted to ratify the 2025–2027 master agreement with the Mankato Teachers Association, approving contract language and compensation described by district staff.

John Lustig, presenting the agreement to the board, said the two‑year package “represents approximately $6,400,000 in new cost to the school district, which represents about a 9.38% increase,” and described changes that include step advancement on the salary schedule, increases to career increments for eligible staff and higher employer contributions to benefits and the district retirement vehicle.

The contract also contains language intended to help teachers manage student‑loan burdens: Lustig told the board the agreement allows the district to use an IRS provision so teachers making student loan payments can still qualify for the district match typically tied to 403(b) contributions. Superintendent Peterson praised the negotiation process and said the result will help Mankato remain competitive for hiring, calling the process “fair” and “reasonable.”

Board discussion included a public comment earlier in the meeting urging higher statewide teacher pay; district leaders responded that a majority of the district’s teachers are on top steps of the pay schedule and that the negotiated package is one tool among others to retain staff.

On the motion to ratify, the board approved the agreement by roll call. The ratified agreement will apply to all licensed teachers and related service staff defined in the contract for the 2025–2027 period.

The board packet and the presentation to members included more detail on step increases, career increments and benefits language; the district said the full agreement is available in the meeting materials.