Contract talks between Hamilton Southeastern Schools (HSE) and the Hamilton Southeastern Education Association (HSEA) ended without an agreement this week, as both sides continue to clash over compensation and district finances.
In a statement, district leaders said they could not meet the union’s pay proposals “while maintaining long-term fiscal stability,” pointing to declining enrollment, new state funding laws, and an ongoing budget deficit.
“We at HSE Schools remain committed to negotiating in good faith and are disappointed by the false narratives being promoted and the unproductive path by which the HSEA representatives have chosen to approach this process,” Superintendent Patrick Mapes said. He added that the school board must protect the district from “long-term deficits” while preserving classroom instruction.
According to the district, changes under Senate Enrolled Act 1 (SEA-1), combined with falling enrollment, are expected to reduce the Education Fund cash balance by about $10.7 million by early 2027. Without corrective action, HSE projects the fund could fall to a negative balance of about $6.2 million by January 2028.
HSE highlighted its current investments in teacher pay, including what it says is the highest starting teacher salary in Hamilton County and directing 84% of Education Fund revenue toward teacher salaries and benefits—well above the state-required 62%. The district also said 96% of referendum dollars go directly toward classroom instruction and educator positions.
The district’s statement emphasized that state law limits how teacher raises can be awarded and prohibits school corporations from bargaining agreements that could lead to deficit spending.
The teachers union issued a sharply different assessment of the day’s negotiations, accusing the administration of offering “an old, tired solution” that would require educators to give up hard-earned contributions toward their health savings accounts in exchange for minimal insurance relief.
“It was a slap in the face to our dedication and ingenuity,” the union wrote, thanking members for “holding the line” and rejecting what it characterized as repackaged concessions.
The HSEA also referenced Wednesday night’s school board meeting, where teachers and supporters attempted to speak about ongoing bargaining but were ruled out of order because the issue was not listed on the agenda.
HSE said it will continue negotiations with the union within the state-mandated timeline.