GIBSON CITY — Gibson City-Melvin-Sibley school board members have reached a new one-year contract with teachers.

Superintendent Anthony Galindo termed the contract a "soft freeze" because teachers will receive no salary increase other than new "steps" on the salary schedule. Step increases are earned for years of service or education credits.

Galindo said the total step increases will mean an approximate 2 percent increase in teacher salaries over the previous year and an additional $100,000 budget expense. Some staff, such as first-year teachers and those at the highest payment step, will receive no increase.

He cited uncertainty in both state and federal payments and local budget deficits as reasons for the contract length and terms. He said both sides would have preferred a longer contract.

The proposed fiscal year 2012 budget to be presented at the board's Sept. 16 meeting includes decreases in revenue. Galindo said the district would likely receive about $300,000 less in general state aid and up to $100,000 less in transportation reimbursement.

The education fund, which accounts for the majority of expenses, is projected to have a $770,000 deficit. The budget is now on display at the unit office and the board will hold a public hearing before voting on the budget at its September meeting.

Galindo reported that the district office move will be delayed until early October because of construction delays and a busy September work schedule for unit staff.

The unit office and board meeting space will move to the former Moyer Library building at 307 N. Sangamon Avenue. After the move, remodeling of former district space for pre-kindergarten classrooms will begin, with an expected January move-in date for students.