The Hamilton Southeastern School Board voted 7-0 Wednesday night to approve a one-year contract with the Hamilton Southeastern Education Association (HSEA). The vote ends bargaining for the 2026-27 school year.
The vote came one day after voters approved HSE’s replacement operating referendum. Part of the teachers’ raise depended on that referendum passing.
Under the contract, eligible teachers get a $1,225 base salary increase. They also get the extra $603 that was tied to the referendum, for a total of $1,828. Starting pay for teachers hired after ratification goes up $750, plus $250 more now that the referendum has passed.
To qualify for the raise, teachers must have worked at least 120 days during the 2025-26 school year and still be employed by HSE when the contract is ratified. The agreement also includes:
- A $200 payment for teachers with an early literacy endorsement
- Extra pay for qualifying teachers with a master’s degree
- Starting in 2027, a $20,000 pool of extra health savings account contributions, shared by married couples who both teach at HSE
New insurance rates, which the board approved Oct. 14, include options that could lower premiums by about 10%.
HSEA members ratified the agreement last month, with 97% voting in favor.
“Tonight, with a vote of 7-0, our bargaining season has officially come to a close for the 2026–2027 school year,” the association said in a statement posted on Facebook after the meeting. “While this chapter of the process is ending, we recognize that our work is far from finished.”
The union said its bargaining team represented all 1,249 bargaining unit members. It said the agreement offers “meaningful financial and professional benefits that remain competitive with those offered by surrounding districts” at a time of rising living costs and insurance premiums.
The union also thanked Superintendent Dr. Matt Kegley, Chief Financial Officer Tim Brown and Ryan Taylor for “fostering a collaborative and respectful environment throughout negotiations.”
HSEA said it will spend the rest of the school year gathering feedback from members and setting priorities for the next round of talks. “Now that the referendum has passed, it is our hope that our next bargaining cycle will result in a two-year contract,” the statement said. “This will provide stability for teachers and their families.”
During the meeting, the bargaining team read a statement thanking the community for approving the referendum. The team said it understands the responsibility to keep providing “a first-class education that is the envy of the state.” It said it looks forward to “more constructive dialogue” to make HSE “the most attractive destination for Hoosier students and educators.”
This year’s talks were much calmer than last year’s. In 2025, HSEA members rejected the first tentative agreement and the talks went to mediation. The final 2025-26 contract had no base or step pay increases, and higher insurance premiums cut take-home pay for many teachers.
The replacement referendum passed with 58.33% of the vote in unofficial results. It allows a maximum rate of 36 cents per $100 of assessed value for eight years. The district’s 2027 budget uses a 22-cent rate, compared with the current 19.95 cents. HSE went back to voters because state property tax changes under Senate Enrolled Act 1 sharply cut the revenue from the 2023 referendum.