Despite a dozen or more negotiation meetings since January, the Penn Hills School District and its teachers are at an impasse over a new contract. The teachers' last contract, a five-year deal, expired Aug. 31.

Although both sides had agreed to release only joint information to the public about their negotiations, the district issued a press release in mid-October detailing its side of the impasse. The Penn Hills Education Association, the union representing the district's 410 teachers, responded with a press release that criticized the district for taking the negotiations public.

At issue are the length of the contract, salary and contribution to health care benefits.

District officials say their commitment to keep the district sound financially has left it with no funds for increases in teacher salaries or benefits.

Over the past 18 months, the district has taken action to address chronic budget shortfalls. Those actions included last year's closing of two elementary schools and the high school vo-tech program.

All district administrators, including principals, agreed to forgo scheduled 3 percent to 5 percent pay increases in the current school year.

"The district can't add to costs right now and we don't know what we have to offer [in the future]," said Business Manager Richard Liberto, adding that the school board directed him "not to put any increases in the [2009-10] budget for teachers."

The district's most recent offer to teachers is a two-year contract with a wage freeze and employee contribution of 10 percent toward health care premiums. "Step" increases, the annual raises that teachers receive for each year of service, would apply.

The teachers' union has proposed a five-year contract with a 6 percent salary increase, step increases, and a reduction in the contribution to health care for individual coverage.

In light of the district's financial problems, the union has proposed extending the existing contract for one year. The district has refused this proposal.

Bruce Campbell, the attorney representing the district in contract negotiations, said the district does not have the funds to fulfill step increases in the existing contract. He added that the school board is unwilling to consider a tax increase to cover teacher salaries because the "tax effort" for Penn Hills residents is one of the highest in the state.

When the teachers' contract expired Aug. 31, the average teacher salary was the third-lowest among the 43 school districts in Allegheny County, aid Ryan Osorio, PHEA president.

The teachers' current contribution to their health care is 1.2 percent of salary. Butch Santicola, of the Pennsylvania State Education Association, said the current rate of contribution is "one of the highest" in Allegheny County.

The next negotiation meeting is scheduled for Nov. 10. Mr. Liberto said that date was chosen because it follows the deadline for submission of the district's financial audit to the state.

"Then we'll know where we stand," he said.

Other issues have complicated the contract negotiations. The district recently moved forward on a three-year, $130 million plan to replace its high school and to consolidate its four elementary schools into a single center for kindergarten through grade four. The district authorized a bond issue in September to fund the project. Mr. Liberto has consistently stated that the project will not require a tax increase.

Another source of controversy was the hiring of Mr. Campbell. School board member Erin Vecchio has repeatedly said the expense of hiring Mr. Campbell was unnecessary because district has a solicitor, Craig Alexander. A board resolution to end the contract with Mr. Campbell failed to pass in September. The district has paid about $20,000 for Mr. Campbell's services since June 2008.

Joseph Bailey, Barry Patterson and John Zacchia represent the board on the negotiating committee.

The teachers' union held a membership meeting on Oct. 12. No vote was taken to authorize a strike. The last strike involving Penn Hills teachers was during the 1992-93 school year.

Another union contract in the district remains unresolved. Workers represented by the Penn Hills Education Support Professionals Association, which represents secretaries, instructional aides and recess aides, have been without a contract since June 30.

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