The Palo Alto Educators Association requested a 9% salary increase for the 2025-26 school year, 8% for the following year and prolonged healthcare coverage in the February 10 board meeting.
The original request from the PAEA for a 13% raise with continuing health benefits was rejected by the Palo Alto Unified School District, which stated at the February 10 board meeting that it would put the district in a tough financial position. The district instead proposed a 2% annual raise with existing healthcare benefits, which consisted of 100% coverage for employees and 90% for family members.
In a more recent discussion, the district offered a 3% raise for the 2025-26 school year and health benefits through the 2027-28 school year.
Palo Alto Educators Association President Tom Culbertson said that the money provided from the district isn’t enough to live in the current economy.
“The cost of living and affordability are a nationwide problem that is acutely affecting our region,” Culbertson said. “We’re fighting for a contract that recognizes the value of the work we do in the classroom everyday, from managing class sizes to ensuring every student gets the support they need.”
According to the PAUSD website, the district typically prepares a budget projection before the school year to estimate the amount of money remaining in the general fund when the year concludes. However, according to Palo Alto Online, these predictions have been inaccurate. In June of 2024, staff had predicted the district would have $91 million after the 2024-25 school year, but the remaining balance was over $100 million.
This school year, the district’s June 2025 prediction put the balance at around $86 million; however, PAUSD Chief Business Officer Charen Yu now predicts the balance to be $95 million by the end of the year.
Despite the additional balance, the district continues to hold back on raises.
“The community needs to understand that investments are needed in areas like student and employee safety, leadership…mental health, healthcare and so many other things,” Culbertson said. “Sadly, some of these things are not a priority of management yet, and the community is instrumental in helping management understand the priorities that we all share.”
