Mars Area teachers will begin the 2026-27 school year without a successor contract after the district and teachers association presented their cases to a neutral fact-finder Wednesday, one day after about 50 teachers and residents gathered at the school board meeting to show support for educators.
Students are scheduled to return to class Aug. 25. MAE President Hollie Meckler said the district and association have not negotiated during the fact-finding
So How Far Apart Are the School District and Teachers Association?
About $450,000 separates the Mars Area School District and its teachers association on salary costs in the first year of their competing contract proposals.
By Year 3, that difference grows to approximately $1.28 million a year.
Those numbers help put into perspective a contract dispute that has often been discussed in percentages — 3.5%, 5.5% and 6% — that may not mean much to the average taxpayer.
But salary isn’t the only issue separating the district and the Mars Area Education Association.
They also differ over how quickly teachers should move through the salary schedule, how long the next contract should last and whether teachers should contribute toward their healthcare premiums if the agreement extends to five years.
Information provided separately to The 228 Times by the district and teachers association now provides a clearer picture of what separates the two sides — and some of the financial considerations facing the district.
| ISSUE | DISTRICT PROPOSAL | MAE PROPOSAL |
| Contract length | 3 years | 5 years |
| Salary increase | 3.5% aggregate annually | 6%, 5.5%, 5.5%, 5.25%, 5% |
| Year 1 salary difference | Baseline proposal | About $450,000 more |
| Year 3 salary difference | Baseline proposal | About $1.28 million more annually |
| Salary schedule | Current proposal structure | Wants 20 steps reduced to 16–18 |
| Healthcare premiums | No teacher premium contribution under 3-year deal | Seeking 5-year deal; district says longer deal requires premium contributions |
| Current healthcare | District pays premiums and contributes to HSA | MAE says teachers have $1,650 individual/$3,300 family deductibles |
How Far Apart Are They on Salaries?
The district is proposing a three-year contract with a 3.5% aggregate annual increase in the pool of money used for teacher salaries.
MAE is proposing a five-year contract beginning with a 6% increase in Year 1, followed by increases of 5.5% in Years 2 and 3, 5.25% in Year 4 and 5% in Year 5.
According to calculations provided by MAE, the difference between the two salary proposals would be:
- Year 1: $450,541
- Year 2: $848,368
- Year 3: $1,281,132
Perhaps more importantly, the district and association are now remarkably close in their calculations of what the district’s own proposal would cost.
The district projects teacher salary costs of approximately $18.63 million in Year 1, $19.28 million in Year 2 and $19.96 million in Year 3.
MAE independently calculated approximately $18.65 million, $19.31 million and $19.98 million for those same three years.
In other words, the two sides appear to largely agree on the math behind the district’s proposal.
The disagreement is over how much more Mars should invest in teacher compensation and how that money should be distributed through the salary schedule.
Does 3.5% Mean Every Teacher Gets a 3.5% Raise?
No.
School Board Vice President Kevin Hagen told The 228 Times that the district’s proposed 3.5% represents an increase in the district’s overall pool of money for teacher salaries.
“The 3.5% aggregate is the total amount increased in the pool of money for teacher salaries,” Hagen said.
Teachers are paid according to a salary schedule that takes into account experience and education.
Movement across the schedule for additional education — such as a teacher moving from the B+24 column to the master’s degree column — is not included in the district’s 3.5% calculation, according to Hagen. He said those costs are budgeted separately based on historical trends.
The association is also seeking changes that would allow teachers to reach higher salary levels sooner.
MAE President Hollie Meckler has said previous freezes and changes to the salary schedule have resulted in some Mars teachers taking between 23 and 27 years to reach the top salary.
MAE wants to shorten the current 20-step salary schedule to 16 or 18 steps.
What About Healthcare?
Contract length and healthcare are another part of the disagreement.
The district is proposing a three-year contract and has said it is willing to enter that agreement without requiring teachers to contribute toward their healthcare premiums.
The association is seeking a five-year agreement. The district has said it would not agree to a five-year contract without teachers beginning to contribute toward their healthcare premiums.
MAE President Hollie Meckler provided additional context about teachers’ existing healthcare costs. She said Mars teachers agreed nearly a decade ago to move to a high-deductible health plan. Under the current plan, she said, an individual has a $1,650 deductible and a family has a $3,300 deductible.
The district contributes to employees’ Health Savings Accounts to offset a portion of those deductibles. Meckler said the district currently contributes approximately 30% of the deductible.
Meckler said the move to the high-deductible plan has saved the district money over the years. The 228 Times has asked the district to confirm the deductible amounts and whether it has calculated the savings associated with the move to the high-deductible plan.
Healthcare represents a significant expense for the district. District projections show health insurance costs increasing from approximately $5.4 million in 2025-26 to $5.7 million in Year 1, $6.3 million in Year 2 and $6.9 million in Year 3.
How Much Money Does Mars Have?
Another question surrounding the negotiations is the district’s financial position.
Mars had a total general fund balance of approximately $10.85 million as of June 30, 2025, according to information provided by District Business Manager Debbie Brandstetter.
But that doesn’t mean the district has $10.85 million available to spend.
Of that amount:
- $973,641 was classified as nonspendable for prepaid items.
- $5,074,354 was assigned to help balance the 2025-26 budget and for capital improvements.
- $4,800,163 was classified as unassigned.
The meaning of that last number is important.
District Business Manager Debbie Brandstetter said she does not recommend using the district’s fund balance to pay for ongoing salary increases because the fund balance is not a recurring source of revenue.
Salary increases, she explained, become recurring expenses that must be supported in future budgets, while money taken from the fund balance is available only until it is spent.
She also noted that salary increases generally result in corresponding increases in other employer expenses, including PSERS contributions and Social Security and Medicare taxes.
What Else Does the District Have to Pay For?
The district is also planning significant work on its buildings and facilities.
A capital plan dated May 20 identifies approximately $15.89 million in projects over the next five years.
That does not mean Mars needs to spend $15.89 million immediately.
The projected spending is spread across five school years:
- 2026-27: $1.18 million
- 2027-28: $969,000
- 2028-29: $2.31 million
- 2029-30: $3.32 million
- 2030-31: $8.12 million
The plan includes roofing, HVAC, chillers, windows and doors, building-control systems, paving, vehicles and athletic facilities.
The capital plan identifies anticipated projects and costs, but it does not establish whether any of the district’s $4.8 million unassigned fund balance will be used to pay for them.
There is also an important difference between these expenses and salaries.
Capital projects generally represent individual facility investments. Teacher salaries and benefits are recurring expenses that continue from year to year.
The district explained that it must consider those long-term obligations when determining how much compensation it can afford.
The teachers association noted that compensation is also a long-term issue because Mars must be able to recruit and retain teachers.
District solicitor Michael Hnath has previously acknowledged that concern, telling The 228 Times that Mars has lost teachers to neighboring Seneca Valley School District and needs to improve its starting salary to remain competitive.
So What Are the Two Sides Really Disagreeing About?
The numbers now provide a clearer answer.
The district and association appear to largely agree on what the district’s three-year salary proposal would cost.
They disagree over how much Mars should spend on teacher compensation, how quickly teachers should advance through the salary schedule, how long the next contract should last and what role employee healthcare contributions should play in a longer agreement.
The financial question also cuts both ways.
MAE’s proposal would require the district to spend approximately $450,000 more on salaries than the district’s proposal in the first year, with that annual difference growing to approximately $1.28 million by Year 3.
At the same time, Mars reported approximately $4.8 million in unassigned fund balance as of June 30, 2025.
District Business Manager Debbie Brandstetter cautions against using that balance to fund salary increases because salaries are recurring expenses while fund balance is a finite resource accumulated over time.
The district also faces rising healthcare and retirement costs and has identified nearly $15.9 million in capital projects over the next five years.
Those numbers don’t determine which side is right.
They do give taxpayers a clearer picture of the financial decisions at the center of the negotiations.
What Happens Next?
The district and MAE presented their positions to a neutral fact-finder Wednesday, Aug. 19.
Information about the Act 88 fact-finding process provided to The 228 Times by district solicitor Michael Hnath states that the fact-finder hears both parties’ positions in a private hearing and must issue a report within 40 days of being appointed.
MAE President Hollie Meckler said the fact-finder’s report is expected by Aug. 31 and that the School Board will likely vote on the report Sept. 9.
Meckler said the district and association have not negotiated during fact-finding and will not resume negotiations until the process is completed.
The association is also asking parents attending school events to wear red to show support for teachers.
Mars students return to class Aug. 25, meaning teachers will begin the 2026-27 school year without a successor contract.
