SOUTH LAKE TAHOE, Calif. – Lake Tahoe Unified School District (LTUSD) has announced that it reached an agreement with the South Tahoe Educators Association (STEA) on Tuesday, October 12, 2026. This came after months of discussion on a cost-of-living adjustment (COLA) and Tuesday’s meeting between the two sides with a state mediator.

“This agreement reflects the District’s commitment to supporting our teachers and staff while continuing to provide a high-quality education for our students,” said LTUSD in a statement.

STEA initially requested to reopen negotiations based on the Governor’s proposed Super COLA, stating that the District would receive an additional $5 million in funding. However, the District actually received $3.3 million in additional funding. This distinction is important as LTUSD works to balance competitive employee compensation with its ongoing financial responsibilities.

Under the agreement, all LTUSD certificated employees will receive an additional 1.81 percent salary increase effective January 1, 2027. This is in addition to the 2.5 percent salary increase employees received on July 1, 2026, as part of the previously negotiated agreement.

The current teacher salary schedule is available at LTUSD Salary Schedules and Salary Ranges and will be updated soon to reflect the additional increase.

As part of the agreement, STEA negotiated an additional $750 toward health insurance for its members. The District will also adjust contributions for other employee groups so that all LTUSD employees receive an annual District contribution of $15,250 toward health insurance.

STEA members will also receive a one-time payment of $750 in December 2026, just in time for the holidays.

The 192 members of the South Tahoe Educators Association (STEA) asked for a 4.3 percent COLA to battle skyrocketing healthcare costs and rampant inflation. LTUSD and STEA will begin the third year of a three-year agreement that gave teachers a COLA each year: 1.5%, 2%, and 2.5%. They were seeking the 4.3% increase in the third year because a contract stipulation states that if income rises more than planned, the COLA can be renegotiated as a Super COLA.

“LTUSD recognizes the importance of offering competitive salaries and benefits to attract and retain highly qualified teachers and staff. Our employees are central to student success, and retaining experienced educators provides the consistency, strong relationships, and quality instruction our students deserve. We want LTUSD to remain a place where talented educators and staff choose to work, grow, and build their careers,” said LTUSD in the released statement.

LTUSD still faces budget challenges, and the extra funds for COLA, insurance and bonuses will require some careful financial planning and thoughtful decisions about future spending, including curriculum, programs, and other District priorities, to maintain a balanced and sustainable budget.

“LTUSD values the dedication and hard work of all employees who support our students every day. We remain committed to supporting our staff, being responsible stewards of public funds, and keeping students at the center of every decision. Our vision continues to guide our work: To discover and foster the unique talents and potential of all students,” added LTUSD.